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Subjective well-being poverty vs. Income poverty and capabilities poverty?

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  • Geeta Gandhi Kingdon
  • John Knight

Abstract

The conventional approach of economists to the measurement of poverty is to use measures of income or consumption. This has been challenged by those who favour broader criteria, such as fulfilment of 'basic needs' and the 'capabilities' to be and to do things of intrinsic worth. This paper asks: to what extent are these different concepts measurable, to what extent are they competing or complementary, and is it possible for them to be accommodated within an encompassing framework? We conclude that it is possible to view subjective well-being as an encompassing concept, which permits us to quantify the relevance and importance of the other approaches and of their component variables. Any attempt to define poverty involves a value judgment as to what constitutes a good quality of life or a bad one. We argue that an approach which examines the individual's own perception of well-being is less imperfect, or more quantifiable, or both, as a guide to forming that value judgement than are the other potential approaches. The argument is illustrated using a South African household survey.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00220380600884167
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 42 (2006)
Issue (Month): 7 ()
Pages: 1199-1224

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Handle: RePEc:taf:jdevst:v:42:y:2006:i:7:p:1199-1224

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References

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  1. Geeta Kingdon & John Knight, 2004. "Community, Comparisons and Subjective Well-being in a Divided Society," Economics Series Working Papers WPS/2004-21, University of Oxford, Department of Economics.
  2. Bruno S. Frey & Alois Stutzer, 2001. "What Can Economists Learn from Happiness Research?," CESifo Working Paper Series 503, CESifo Group Munich.
  3. Helliwell, John F., 2003. "How's life? Combining individual and national variables to explain subjective well-being," Economic Modelling, Elsevier, vol. 20(2), pages 331-360, March.
  4. Ravallion, Martin & Lokshin, Michael, 2000. "Identifying welfare effects from subjective questions," Policy Research Working Paper Series 2301, The World Bank.
  5. Winkelmann, Liliana & Winkelmann, Rainer, 1998. "Why Are the Unemployed So Unhappy? Evidence from Panel Data," Economica, London School of Economics and Political Science, vol. 65(257), pages 1-15, February.
  6. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-59, May.
  7. Ravallion, Martin & Lokshin, Michael, 2002. "Self-rated economic welfare in Russia," European Economic Review, Elsevier, vol. 46(8), pages 1453-1473, September.
  8. Gardner, Jonathan & Andrew Oswald, 2002. "Does Money Buy Happiness? A Longitudinal Study Using Data on Windfalls," Royal Economic Society Annual Conference 2002 81, Royal Economic Society.
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