domestic credit to the private sector, urban population share, population growth, and the share of working age in total population.

- iii. **Access to basic infrastructure:** This includes the share of the population with access to electricity, the share of people using at least basic drinking water and sanitation services, and the share of people using the internet. We also include an indicator for rural connectivity (the Rural Access Index<sup>24</sup> ).

- iv. **Governance:** This includes type of regime (authoritarian, democratic or hybrid) and a set of World Bank Governance indicators such as voice and accountability, political stability and absence of violence, government effectiveness, regulatory quality, rule of law and control of corruption. This category also includes indicators of violent conflict from the Uppsala Conflict Data Program (UCDP)<sup>25</sup> ( average number of total fatalities per 1,000 people, dummy for years when total fatalities exceeded 0.08 per 1,000 people and dummy for years when total fatalities exceeded 1,000 people<sup>26</sup> ).

To assess whether the effect of economic growth on household welfare as measured by surveys is mediated by any of the specific variables mentioned above, we estimate the following specifications: ∆L i i i ) +∈i Where L i is the change in household consumption or income measured from surveys during time ii0 ii0 LLYY = αα+ ββ∆L LLG PP_C CC + γγXX + δδ(∆L LLG PP_C CC ∗XX period t (a spell between two successive surveys), ∆L i is the change in GDP per capita (from LLYY national accounts) during the time period, and is the variable that potentially mediates the effect of LLG PP_C CC GDP growth on household welfare growth. All regressions also include regional dummies (to control for ii0 XX time-invariant omitted variables at the regional level), the baseline survey mean (survey mean consumption or income at the start of the spell), and a dummy indicating the type of welfare aggregate variable used in the survey (consumption or income). This specification is estimated on two samples: (i) the core analysis sample of 575 successive spells, excluding spells where start- and end-year poverty is below 2 percent (as we are mainly interested in the passthrough between growth and household welfare in poorer countries) and (ii) the full sample of 1,604 successive spells, which is however dominated by upper middle income and high-income countries (these were excluded from the earlier analysis of the GEP due to their near-zero poverty rates, which biases the estimated elasticities). In addition, we also test whether these factors mediate the effect of economic growth on poverty reduction (where the left-hand side variable in equation is replaced by ∆L i ). This analysis is based on the core sample of 575 spells. We also repeated this analysis using HFCE per capita instead of GDP per capita as a measure of economic LLPP growth.

Given that each potential mediating factor is introduced in isolation from others, we run separate regressions for each mediating factor. The specification is always the same, except for the mediating variable. Given that we consider 68 variables as potential mediators between economic growth and household welfare (see Annex Table 2 for the full list of variables we consider), and hence are likely to

> 24 The Rural Access Index (RAI) measures the share of the rural population who live within two kilometers (typically equivalent to a walk of 20-25 minutes) of an all-season road as a proportion of the total rural population.

> 25 Sundberg and Melander (2013).

> 26 See Corral et al. (2020) on measuring conflicts and their impact on socio-economic wellbeing.

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