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Inequality, poverty and mobility: Choosing income or consumption as welfare indicators

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Author Info

  • Carlos Gradín

    (Universidad de Vigo)

  • Olga Cantó

    (Universidad de Vigo)

  • Coral del Río

    (Universidad de Vigo)

Abstract

The economic literature has discussed at large about the best indicator of individual welfare: income or consumption. The implications of this choice are not only a matter for theoretical discussion but turn out to be very relevant for empirical analysis. Up to now, the debate has focused on the effects on distributional statics and avoided discussing or offering evidence of the effects on mobility or poverty dynamics. In this paper we discuss the strengths and weaknesses of both resource measurements and analyze the effects of the choice on distributional dynamics by presenting empirical evidence on Spain obtained from a rotating longitudinal survey.

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Bibliographic Info

Article provided by Fundación SEPI in its journal Investigaciones Económicas.

Volume (Year): 32 (2008)
Issue (Month): 2 (May)
Pages: 169-200

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Handle: RePEc:iec:inveco:v:32:y:2008:i:2:p:169-200

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Related research

Keywords: income distribution; sensitivity analysis; expenditure; mobility; poverty dynamics; Spain.;

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Cited by:
  1. Luis Ayala & Carolina Navarro & Mercedes Sastre, 2011. "Cross-country income mobility comparisons under panel attrition: the relevance of weighting schemes," Applied Economics, Taylor & Francis Journals, vol. 43(25), pages 3495-3521.
  2. Núñez Velázquez, José Javier, 2009. "Estado actual y nuevas aproximaciones a la medición de la pobreza/Current Status and New Approaches to the Measurement of Poverty," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 27, pages 325-346, Agosto.
  3. Sicular, Terry & Yue, Ximing & Gustafsson, Bjorn & Li, Shi, 2006. "The Urban-Rural Income Gap and Inequality in China," Working Paper Series RP2006/135, World Institute for Development Economic Research (UNU-WIDER).
  4. Álvarez-Verdejo, Encarnación & Estudillo-Martínez, María Dolores & Castillo-Gutiérrez, Sonia, 2012. "Estimación de la función de distribución y cuantiles en la población de pobres/Estimation of the Distribution Function and Quantiles for the Population of Poor," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 30, pages 1063 (26 pa, Diciembre.
  5. Luis Ayala & Olga Cantó & Juan G. Rodríguez, 2011. "Poverty and the business cycle: The role of the intra-household distribution of unemployment," Working Papers 222, ECINEQ, Society for the Study of Economic Inequality.
  6. Maharjan, Keshav Lall & Joshi, Niraj Prakash, 2009. "Relationship between Income-poverty and Food insecurity in Rural Far-western Mid-hills of Nepal," 2009 Conference, August 16-22, 2009, Beijing, China 51462, International Association of Agricultural Economists.

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