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The relationship between poverty and inequality: Concepts and measurement

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  • Lin Yang

Abstract

This paper defines and maps the variety of different concepts and measures of poverty and inequality that have been developed and used in research. These reflect differing views of what constitutes a minimum acceptable quality of life and how the disparity between the least and most well-off in society should be defined. Since the analytical conclusions of poverty and inequality research can depend on the concepts and measures chosen, it is worth laying out their underlying rationales. In this paper we discuss the concepts of poverty and inequality in broad terms; the focal variables of poverty and inequality that have been proposed in the literature, from unidimensional monetary indicators to broader multidimensional and subjective concepts; the issues in conducting comparative analyses of poverty and inequality over subgroups of individuals, households, countries and over time; and the properties of measures proposed for summarising levels of poverty and inequality over the population.

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  • Lin Yang, 2017. "The relationship between poverty and inequality: Concepts and measurement," CASE Papers /205, Centre for Analysis of Social Exclusion, LSE.
    • Handle: RePEc:cep:sticas:/205
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    Cited by:

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    2. Polly Vizard & Lin Yang, 2017. "Multidimensional poverty and income inequality in the EU," CASE Papers /207, Centre for Analysis of Social Exclusion, LSE.
    3. Yvonne Hail & Ronald McQuaid, 2021. "The Concept of Fairness in Relation to Women Transport Users," Sustainability, MDPI, vol. 13(5), pages 1-15, March.

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    More about this item

    Keywords

    Poverty; inequalities; capabilities approach; social exclusion; measurement;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D60 - Microeconomics - - Welfare Economics - - - General
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values

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