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Measuring Poverty Accounting For Time

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  • CARLOS GRADÍN
  • CORAL DEL RÍO
  • OLGA CANTÓ

Abstract

In this paper we make a methodological proposal to measure poverty accounting for time by proposing a new index that aims at reconciling the way poverty is measured in a static and a dynamic framework. Our index is able to consider the duration of the poverty spell and the social preference for equality in well-being given that, in contrast with others that have been previously proposed, it is sensitive to the level of inequality between individual complete poverty experiences over time. Moreover, other indices in the literature can be interpreted as special cases of our more general measure.

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Bibliographic Info

Article provided by International Association for Research in Income and Wealth in its journal Review of Income and Wealth.

Volume (Year): 58 (2012)
Issue (Month): 2 (06)
Pages: 330-354

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Handle: RePEc:bla:revinw:v:58:y:2012:i:2:p:330-354

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References

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  1. Mary Jo Bane & David T. Ellwood, 1986. "Slipping into and out of Poverty: The Dynamics of Spells," Journal of Human Resources, University of Wisconsin Press, vol. 21(1), pages 1-23.
  2. Hoy, Michael & Zheng, Buhong, 2011. "Measuring lifetime poverty," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2544-2562.
  3. Jalan, Jyotsna & Ravallion, Martin, 1998. "Transient Poverty in Postreform Rural China," Journal of Comparative Economics, Elsevier, vol. 26(2), pages 338-357, June.
  4. Anthony Shorrocks, 2009. "On the measurement of unemployment," Journal of Economic Inequality, Springer, vol. 7(3), pages 311-327, September.
  5. Catherine Porter & Natalie Na¨iri Quinn, 2008. "Intertemporal Poverty Measurement: Tradeoffs and Policy Options," CSAE Working Paper Series 2008-21, Centre for the Study of African Economies, University of Oxford.
  6. Cesar Calvo & Stefan Dercon, 2007. "Chronic Poverty and All That: The Measurement of Poverty over Time," Economics Series Working Papers WPS/2007-04, University of Oxford, Department of Economics.
  7. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
  8. Bossert, Walter & Chakravarty, Satya R. & d’Ambrosio, Conchita, 2010. "Poverty and Time," Working Paper Series wp2010-74, World Institute for Development Economic Research (UNU-WIDER).
    • Walter Bossert & Satya R. Chakravarty & Conchita D’Ambrosio, 2008. "Poverty and Time," Working Papers 87, ECINEQ, Society for the Study of Economic Inequality.
    • BOSSERT, Walter & CHAKRAVARTY, Satya R. & D’AMBROSIO, Conchita, 2008. "Poverty and Time," Cahiers de recherche 2008-05, Universite de Montreal, Departement de sciences economiques.
    • BOSSERT, Walter & CHAKRAVARTY, Satya R. & D’AMBROSIO, Conchita, 2008. "Poverty and Time," Cahiers de recherche 05-2008, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  9. Anthony Shorrocks, 2009. "Spell incidence, spell duration and the measurement of unemployment," Journal of Economic Inequality, Springer, vol. 7(3), pages 295-310, September.
  10. Mendola, Daria & Busetta, Annalisa & Milito, Anna Maria, 2009. "The importance of consecutive spells of poverty: a longitudinal poverty index," IRISS Working Paper Series 2009-21, IRISS at CEPS/INSTEAD.
  11. Jappelli, Tullio, 1990. "Who Is Credit Constrained in the U.S. Economy?," The Quarterly Journal of Economics, MIT Press, vol. 105(1), pages 219-34, February.
  12. Martin Riese & K. Brunner, 1998. "Measuring the severity of unemployment," Journal of Economics, Springer, vol. 67(2), pages 167-180, June.
  13. Vani K. Borooah, 2002. "A Duration-Sensitive Measure of the Unemployment Rate: Theory and Application," ICER Working Papers 19-2002, ICER - International Centre for Economic Research.
  14. Gaiha, Raghav & Deolalikar, Anil B, 1993. "Persistent, Expected and Innate Poverty: Estimates for Semi-arid Rural South India, 1975-1984," Cambridge Journal of Economics, Oxford University Press, vol. 17(4), pages 409-21, December.
  15. Joan R. Rodgers & John L. Rodgers, 1993. "Chronic Poverty in the United States," Journal of Human Resources, University of Wisconsin Press, vol. 28(1), pages 25-54.
  16. Saul, S., 1992. "An Illfare Approach to the Measurement of Unemployment," Papers e9204, Western Sydney - School of Business And Technology.
  17. Manimay Sengupta, 2009. "Unemployment duration and the measurement of unemployment," Journal of Economic Inequality, Springer, vol. 7(3), pages 273-294, September.
  18. Hojman, Daniel & Kast, Felipe, 2009. "On the Measurement of Poverty Dynamics," Working Paper Series rwp09-035, Harvard University, John F. Kennedy School of Government.
  19. Clark, Stephen & Hemming, Richard & Ulph, David, 1981. "On Indices for the Measurement of Poverty," Economic Journal, Royal Economic Society, vol. 91(362), pages 515-26, June.
  20. Duncan, Greg J, et al, 1993. "Poverty Dynamics in Eight Countries," Journal of Population Economics, Springer, vol. 6(3), pages 215-34.
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Citations

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Cited by:
  1. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
  2. Aaron Nicholas & Ranjan Ray & Kompal Sinha, 2013. "Duration and Multidimensionality in Poverty Measurement," Economics Series 2013_9, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  3. Aaron Nicholas & Ranjan Ray, 2012. "Duration and Persistence in Multidimensional Deprivation: Methodology and Australian Application," The Economic Record, The Economic Society of Australia, vol. 88(280), pages 106-126, 03.
  4. Giovanni Marano & Gianni Betti & Francesca Gagliardi, 2014. "Latent class Markov models for addressing measurement problems in poverty dynamics," Department of Economics University of Siena 695, Department of Economics, University of Siena.
  5. Walter Bossert & Lidia Ceriani & Satya R. Chakravarty & Conchita D'Ambrosio, 2012. "Intertemporal Material Deprivation," Cahiers de recherche 07-2012, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  6. Maria Emma Santos, 2012. "Measuring Chronic Poverty," OPHI Working Papers ophiwp052, Queen Elizabeth House, University of Oxford.
  7. Catherine Porter and Natalie Nairi Quinn, 2012. "Normative Choices and Tradeoffs when Measuring Poverty over Time," OPHI Working Papers ophiwp056, Queen Elizabeth House, University of Oxford.

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