This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Time and Income Poverty: An Interdependent Multidimensional Poverty Approach with German Time Use Diary Data

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Joachim Merz
Tim Rathjen
Abstract

Income as the traditional one dimensional measure in well-being and poverty analyses is extended in recent studies by a multidimensional poverty concept. Though this is certainly a progress, however, two important aspects are missing: time as an important dimension and the interdependence of the often only separately counted multiple poverty dimensions. Our paper will contribute to both aspects: First, we consider time - and income - both as striking and restricting resources of everyday activities and hence account for time and income as important multiple poverty dimensions. Second, the interdependence of the poverty dimensions will be evaluated by the German population to allow an advanced approach to understand possible substitution effects and the respective trade offs between the dimensions. Referring to the time dimension, we follow Sen's capability approach with its freedom of the living conditions' choice and social exclusion and argue, that restricted time might exclude from social participation. In particular, restricted genuine, personal leisure time (not entire leisure time) in particular is associated with a restricted social participation. The crucial question then is how to measure the substitution between income and such genuine leisure time. In our analysis we consider the country population's valuation with data from the German Socio-Economic Panel and estimate the substitution by a CES-utility function of general utility/satisfaction. Given this quantification we disentangle time, income and interdependent multidimensional poverty regimes characterising the working poor. In addition, we quantify further socio-economic influences for each interdependent multidimensional poverty regime by a multinomial logit based on time use diary data of the German Time Use Study 2001/02. One striking result for Germany: the substitution between time and income is significant and we find an important fraction of time poor who are unable to substitute their time deficit by income. These poor people are ignored within the poverty and well-being as well as the time crunch and time famine discussion so far.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.340879.de/diw_sp0215.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers with number 215.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 26 p.
Date of creation: 2009
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp215

Contact details of provider:
Postal: Mohrenstra�e 58, D-10117 Berlin
Phone: xx49-30-89789-283
Fax: xx49-30-89789-109
Email:
Web page: http://www.diw.de/en/soep
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Bibliothek).

Related research
Keywords: Interdependent multidimensional time and income poverty; time and income substitution; extended economic well-being; satisfaction; CES utility function estimation; working poor; German Socio-Economic Panel; German Time Use Surveys 2001/02;

Find related papers by JEL classification:
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

This paper has been announced in the following NEP Reports:

This item is featured on the following reading lists:
  1. SOEP based publications
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Merz, Joachim & Osberg, Lars, 2006. "Keeping in Touch – A Benefit of Public Holidays," MPRA Paper 5738, University Library of Munich, Germany. [Downloadable!]
    Other versions:
  2. Clark, Andrew E. & Oswald, Andrew J., 1996. "Satisfaction and comparison income," Journal of Public Economics, Elsevier, vol. 61(3), pages 359-381, September. [Downloadable!] (restricted)
    Other versions:
  3. Kai-yuen Tsui, 2002. "Multidimensional poverty indices," Social Choice and Welfare, Springer, vol. 19(1), pages 69-93. [Downloadable!] (restricted)
  4. François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," Journal of Economic Inequality, Springer, vol. 1(1), pages 25-49, April. [Downloadable!] (restricted)
    Other versions:
  5. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008. "Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 95-144, March.
    Other versions:
  6. Maria Ana Lugo & Esfandiar Maasoumi, 2008. "Multidimensional Poverty Measures from an Information Theory Perspective," Working Papers 85, ECINEQ, Society for the Study of Economic Inequality. [Downloadable!]
    Other versions:
  7. Hoff, Ayoe, 2004. "THE LINEAR APPROXIMATION OF THE CES FUNCTION WITH n INPUT VARIABLES," Marine Resource Economics, Marine Resources Foundation, vol. 19(3). [Downloadable!]
  8. Freeman, Richard B, 1978. "Job Satisfaction as an Economic Variable," American Economic Review, American Economic Association, vol. 68(2), pages 135-41, May. [Downloadable!] (restricted)
    Other versions:
  9. Kuan Xu & Lars Osberg, 2002. "On Sen's Approach to Poverty Measures and Recent Developments," Department of Economics at Dalhousie University working papers archive sensw, Dalhousie, Department of Economics. [Downloadable!]
  10. Michael Bittman, 1999. "Social Participation and Family Welfare: The Money and Time Costs of Leisure," Discussion Papers 0095, University of New South Wales, Social Policy Research Centre. [Downloadable!]
  11. Joseph Deutsch & Jacques Silber, 2005. "Measuring Multidimensional Poverty: An Empirical Comparison Of Various Approaches," Review of Income and Wealth, Blackwell Publishing, vol. 51(1), pages 145-174, 03. [Downloadable!] (restricted)
  12. Jens Bonke & Mette Deding & Mette Lausten, 2009. "Time and Money," Journal of Happiness Studies, Springer, vol. 10(2), pages 113-131, April. [Downloadable!] (restricted)
  13. Bruno Frey & Alois Stutzer, 2005. "Happiness Research: State and Prospects," Review of Social Economy, Taylor and Francis Journals, vol. 63(2), pages 207-228, June. [Downloadable!] (restricted)
    Other versions:
  14. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May. [Downloadable!] (restricted)
  15. Michael Bittman & Robert E. Goodin, 1998. "An Equivalence Scale for Time," Discussion Papers 0085, University of New South Wales, Social Policy Research Centre. [Downloadable!]
  16. J. Bonke & M. Deding & M. Lausten, 2006. "Time and Money: Substitutes in Real Terms and Complements in Satisfactions," Economics Working Paper Archive wp_451, Levy Economics Institute, The. [Downloadable!]
Full references

Statistics
Access and download statistics

Did you know? IDEAS also indexes book chapters.

This page was last updated on 2009-11-30.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.