The first of these disaggregates any variation in poverty and indigence rates into two components, growth in average income (“growth effect”) and changes in the way this income is distributed (“distribution effect”). The latter involves assessing the role played by the different sources contributing to household income and paying special attention to the labour market factors accounting for changes in earnings. The growth effect was particularly important in Argentina, Colombia, the Dominican Republic, Ecuador and Honduras, where it accounted for 80% or more of the decline in poverty.