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Time and income poverty: An interdependent multidimensional poverty approach with German time use diary data

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  • Joachim Merz

    (LEUPHANA University Lüneburg – IZA)

  • Tim Rathjen

    (LEUPHANA University Lüneburg)

Abstract

Income as the traditional one dimensional measure in well-being and poverty analyses is extended in recent studies by a multidimensional poverty concept, 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: We consider time – and income – both as important resources of everyday activities; the interdependence of the poverty dimensions will be evaluated by the German population. Referring to the time dimension, we follow Sen’s capability approach and argue, that restricted genuine, leisure time might exclude from social participation. The substitution between income and genuine leisure time is estimated by a CES-utility function of general utility with the German Socio-Economic Panel. We disentangle time, income and interdependent multidimensional poverty regimes characterising the working poor by a multinomial logit based on German 2001/02 time use diary data. One striking result: 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/time famine discussion so far.

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2009-126.pdf
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Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 126.

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Length: 32 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2009-126

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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.;

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References

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Citations

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Cited by:
  1. Merz, Joachim & Rathjen, Tim, 2011. "Intensity of Time and Income Interdependent Multidimensional Poverty: Well-Being and Minimum 2DGAP – German Evidence," IZA Discussion Papers 6022, Institute for the Study of Labor (IZA).
  2. Busch, Christopher & Peichl, Andreas, 2010. "The Development of Multidimensional Poverty in Germany 1985-2007," IZA Discussion Papers 4922, Institute for the Study of Labor (IZA).
  3. Joachim Merz & Henning Stolze, 2010. "Kumulation von Querschnitten - Evaluierung alternativer Konzepte für die kumulierten laufenden Wirtschaftsrechnungen 1999 bis 2003 im Vergleich zur Einkommens- und Verbrauchsstichprobe 2003," FFB-Discussionpaper, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg 85, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
  4. David Bell & Steffen Otterbach & Alfonso Sousa-Poza, 2011. "Work Hours Constraints and Health," SOEPpapers on Multidisciplinary Panel Data Research 424, DIW Berlin, The German Socio-Economic Panel (SOEP).
  5. Joachim Merz & Bettina Scherg, 2013. "Polarization of time and income – A multidimensional approach with well-being gap and minimum 2DGAP: German evidence," Working Papers 297, ECINEQ, Society for the Study of Economic Inequality.
  6. Joachim Merz & Tim Rathjen, 2011. "Zeit- und Einkommensarmut von Freien Berufen und Unternehmern," FFB-Discussionpaper, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg 89, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
  7. Tim Rathjen, 2011. "Do Time Poor Individuals Pay More?," FFB-Discussionpaper, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg 91, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.

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