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Inequality, Poverty And Mobility: Choosing Income Or Consumption As Welfare Indicators

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  • Carlos Gradín (a)

    ()
    (Universidad de Vigo)

  • Olga Cantó

    (Universidad de Vigo)

  • Coral del Río

    (Universidad de Vigo)

Abstract

. The literature on economic income disribution has largely debated the issue of which is the best indicator of individual welfare: income or consumption. The implications of the choice are not only a matter for theoretical discussion but are clearly very relevant when undertaking any empirical distributional analysis. The discussion has largely centred the debate on the implications of this choice on inequality and poverty statics while that on mobility and poverty dynamics is very scarce due, in many occassions, to the availability of consumption survey data in a longitudinal format. In this paper we analyse the effects of choosing income or consumption on household mobility and poverty dynamics using very detailed information on both household incomes and expenditures.

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Paper provided by Instituto de Estudios Fiscales in its series Working Papers with number 18-04 Classification-JEL : D1, D31, I32..

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Handle: RePEc:hpe:wpaper:y:2004:i:18

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

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Cited by:
  1. Terry Sicular & Yue Ximing & Björn Gustafsson & Li Shi, 2007. "The Urban-Rural Income Gap And Inequality In China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(1), pages 93-126, 03.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.

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