The authors examine the sensitivity of U.K.-Spanish poverty comparisons to variations in the dependence of equivalence scales on household size and composition, using evidence from national household budget surveys. They sum up these comparisons using subjective confidence levels. Taking into account the dissimilarities in the distribution of incomes and needs across countries, the authors find, inter alia, that although the poor are typically more numerous in Spain than in Britain, the actual headcount differences may vary by up to 10 percent of the population when needs allowances are altered, even when kept the same across the two countries. Comparisons of poverty composition across the two countries are also very sensitive to the choice of equivalence scale parameters. Generally, however, the proportion of single adults among the poor is much less important in Spain than in Britain, the reverse being true for households with three or more adults. Copyright 1999 by The International Association for Research in Income and Wealth.
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Miguel Székely & Nora Lustig & Martin Cumpa & José Antonio Mejía-Guerra, 2000.
"¿Sabemos qué tanta pobreza hay?,"
RES Working Papers
4240, Inter-American Development Bank, Research Department.
[Downloadable!]
Miguel Székely & Nora Lustig & Martin Cumpa & José Antonio Mejía-Guerra, 2000.
"Do We Know How Much Poverty There Is?,"
RES Working Papers
4239, Inter-American Development Bank, Research Department.
[Downloadable!]
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