Nearly all poor households hold a single productive asset: human capital. This makes employment — quantity and quality — the central lever for poverty reduction.
Closing employment gaps in poor households to a benchmark of 75% of working-age adults would reduce extreme poverty by a fifth, with the gain going mainly to workers above the extreme poverty line — where the nonworking adults are mostly women.
Raising the earnings of poor workers toward what comparable nonpoor workers earn could cut poverty by nearly half, with the gain going mainly to the poorest households.