Advanced Search
MyIDEAS: Login

Intensity of time and income interdependent multidimensional poverty: Well-being and minimum 2DGAP – German evidence

Contents:

Author Info

  • Joachim Merz

    ()
    (Leuphana University Lüneburg, FFB and IZA)

  • Tim Rathjen

    ()
    (Leuphana University Lüneburg, FFB)

Abstract

Extending the traditional income poverty concept by multidimensional poverty has been of growing interest within the last years. This paper contributes with an analysis of interdependent multidimensional (IMD) poverty intensity of time and income, which in particular restricts social participation. The interdependency of the multiple poverty dimensions under a strong (union approach) and weak focus axiom (compensation approach) are regarded in particular when measuring the intensity of multidimensional poverty. In addition to various poverty gap measures including the multidimensional well-being gap, for the first time we pro-pose a minimum multidimensional poverty gap (2DGAP). To respect Sen’s capability approach with its social participation aspects we define the time dimension as genuine personal leisure time. Based on a CES well-being function and a multi-dimensional poverty line evaluated by the German population (estimated with the German Socio-Economic Panel) the individual poverty intensity of the active population is analysed for various regimes of multiple poverty. For this purpose the German Time Use Surveys 1991/92 and 2001/02 and its time use diary data are used. Analysing the active population this paper contributes too to the poverty situation of the working poor. All the empirical results, including the microeconometric Heckman type estimation of the IMD poverty intensity (2DGAP) and the IMD poverty risk, indicate the overall importance of the time dimension with its social participation aspect incorporated within an interdependent multidimensional time and income poverty approach. An important dimension would be neglected in the poverty analysis and in targeted poverty policies if time additional to income would is not respected.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. 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.ecineq.org/milano/WP/ECINEQ2011-228.pdf
Download Restriction: no

Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 228.

as in new window
Length: 43 pages
Date of creation: 2011
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2011-228

Contact details of provider:
Email:
Web page: http://www.ecineq.org
More information through EDIRC

Related research

Keywords: Intensity of time and income poverty; interdependent multidimensional time and income poverty; union and compensation approach; minimum multidimensional poverty gap (2DGAP); extended economic well-being; satisfaction/happiness; working poor; CES well-being function; German Socio-Economic Panel; German Time Use Surveys 1991/92 and 2001/02;

Other versions of this item:

Find related papers by JEL classification:

References

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.:
as in new window
  1. Richard B. Freeman, 1978. "Job Satisfaction as an Economic Variable," NBER Working Papers 0225, National Bureau of Economic Research, Inc.
  2. Joachim Merz & Tim Rathjen, 2009. "Time and income poverty: An interdependent multidimensional poverty approach with German time use diary data," Working Papers 126, ECINEQ, Society for the Study of Economic Inequality.
  3. Walter Bossert & Satya R. Chakravarty & Conchita D'Ambrosio, 2009. "Multidimensional poverty and material deprivation," Working Papers 129, ECINEQ, Society for the Study of Economic Inequality.
  4. repec:ese:iserwp:2006-40 is not listed on IDEAS
  5. Jenkins, Stephen P. & Osberg, Lars, 2003. "Nobody to Play With? The Implications of Leisure Coordination," IZA Discussion Papers 850, Institute for the Study of Labor (IZA).
  6. Andrew E. Clark and Andrew J. Oswald, . "Satisfaction and Comparison Income," Economics Discussion Papers 419, University of Essex, Department of Economics.
  7. Polachek,Solomon W. & Siebert,W. Stanley, 1993. "The Economics of Earnings," Cambridge Books, Cambridge University Press, number 9780521367288, October.
  8. 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.
  9. Jens Bonke & Mette Deding & Mette Lausten, 2009. "Time and Money," Journal of Happiness Studies, Springer, vol. 10(2), pages 113-131, April.
  10. Thon, Dominique, 1979. "On Measuring Poverty," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(4), pages 429-39, December.
  11. 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.
  12. Andrew Harvey & Arun Mukhopadhyay, 2007. "When Twenty-Four Hours is not Enough: Time Poverty of Working Parents," Social Indicators Research, Springer, vol. 82(1), pages 57-77, May.
  13. Jens Bonke & Frederik Gerstoft, 2007. "Stress, time use and gender," electronic International Journal of Time Use Research, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)) and The International Association for Time Use Research (IATUR), vol. 4(1), pages 47-68, September.
  14. Joachim Merz & Lars Osberg, 2006. "Keeping in Touch - A Benefit of Public Holidays," Working Papers 37, ECINEQ, Society for the Study of Economic Inequality.
  15. Robert Goodin & James Rice & Michael Bittman & Peter Saunders, 2005. "The Time-Pressure Illusion: Discretionary Time vs. Free Time," Social Indicators Research, Springer, vol. 73(1), pages 43-70, 08.
  16. Zheng, Buhong, 1997. " Aggregate Poverty Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 11(2), pages 123-62, June.
  17. Lars Osberg & Andrew Sharpe, 2010. "The Index of Economic Well-Being," Challenge, M.E. Sharpe, Inc., vol. 53(4), pages 25-42, July.
  18. Thursby, Jerry G & Lovell, C A Knox, 1978. "An Investigation of the Kmenta Approximation to the CES Function," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 363-77, June.
  19. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP): Scope, Evolution and Enhancements," SOEPpapers on Multidisciplinary Panel Data Research 1, DIW Berlin, The German Socio-Economic Panel (SOEP).
  20. François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," Journal of Economic Inequality, Springer, vol. 1(1), pages 25-49, April.
  21. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492 National Bureau of Economic Research, Inc.
  22. Kai-yuen Tsui, 2002. "Multidimensional poverty indices," Social Choice and Welfare, Springer, vol. 19(1), pages 69-93.
  23. Clark, Andrew E. & Frijters, Paul & Shields, Michael A., 2007. "Relative Income, Happiness and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," IZA Discussion Papers 2840, Institute for the Study of Labor (IZA).
  24. Madden, D, 2008. "Health and Income Poverty in Ireland, 2003-2006," Health, Econometrics and Data Group (HEDG) Working Papers 08/14, HEDG, c/o Department of Economics, University of York.
  25. Joseph Deutsch & Jacques Silber, 2005. "Measuring Multidimensional Poverty: An Empirical Comparison Of Various Approaches," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(1), pages 145-174, 03.
  26. Joachim Merz & Tim Rathjen, 2010. "Sind Selbständige zeit- und einkommensarm? Eine Mikroanalyse der Dynamik interdependenter multidimensionaler Armut mit dem Sozio-ökonomischen Panel und den deutschen Zeitbudgeterhebungen," FFB-Discussionpaper 82, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
  27. Maasoumi, Esfandiar & Lugo, Maria, 2006. "The Information Basis of Multivariate Poverty Assessments," Departmental Working Papers 0603, Southern Methodist University, Department of Economics.
  28. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7), pages 476-487.
  29. Bruno Frey & Alois Stutzer, 2005. "Happiness Research: State and Prospects," Review of Social Economy, Taylor & Francis Journals, vol. 63(2), pages 207-228.
  30. Satya R. Chakravarty & Pietro Muliere, 2004. "Welfare indicators: a review and new perspectives. 2. Measurement of poverty," Metron - International Journal of Statistics, Dipartimento di Statistica, Probabilità e Statistiche Applicate - University of Rome, vol. 0(2), pages 247-281.
  31. Bruno S. Frey & Alois Stutzer, 2001. "What Can Economists Learn from Happiness Research?," CESifo Working Paper Series 503, CESifo Group Munich.
  32. Osberg, L. & Sharpe, A., 1998. "An Index of Economic Well-being for Canada," Department of Economics at Dalhousie University working papers archive 98-08, Dalhousie, Department of Economics.
  33. 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.
  34. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1973. "Transcendental Logarithmic Production Frontiers," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 28-45, February.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Tim Rathjen, 2011. "Do Time Poor Individuals Pay More?," FFB-Discussionpaper 91, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.

Lists

This item is featured on the following reading lists or Wikipedia pages:
  1. SOEP based publications

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:inq:inqwps:ecineq2011-228. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Maria Ana Lugo).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.