Poverty Growth in Scandinavian Countries: A Sen Multi-decomposition
AbstractWe show in this paper that the growth rate of the Sen index is multi-decomposable, that is, decomposable simultaneously by groups and income sources. The multi-decomposition of the poverty growth yields respectively: the growth rate of the poverty incidence (poverty rate) decomposed by groups, the growth rate of the poverty depth (poverty gap ratios) decomposed by sources and groups, and the growth rate of inequality decomposed by sources and groups. We demonstrate that the multi-decomposition is not unique. It is mainly dependent on poverty lines defined on the space of income sources. An application to Scandinavian countries shows that poverty lines based on non-correlation between the sources of incomes imply serious underestimation of the contribution levels of the different components of the global poverty growth. The main contribution of our paper is to pay a particular attention to the poverty growth and its source components in order to avoid underestimation of poverty growth.
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Bibliographic InfoPaper provided by CEPS/INSTEAD in its series CEPS/INSTEAD Working Paper Series with number 2010-29.
Length: 36 pages
Date of creation: Sep 2010
Date of revision:
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Gini index; Sen index; Source decomposition; Subgroup decomposition;
Other versions of this item:
- Mussard, Stéphane & Pi Alperin, Maria Noel, 2011. "Poverty growth in Scandinavian countries: A Sen multi-decomposition," Economic Modelling, Elsevier, vol. 28(6), pages 2842-2853.
- Stéphane Mussard & Pi Alperin María Noel, 2010. "Poverty Growth in Scandinavian Countries: A Sen Multi-decomposition," Cahiers de recherche 10-21, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
- Stéphane Mussard & Maria Noel Pi Alperin, 2010. "Poverty Growth in Scandinavian Countries: A Sen Multi-decomposition," Working Papers 10-10, LAMETA, Universtiy of Montpellier, revised Sep 2010.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-02 (All new papers)
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.:
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- Mussini, Mauro, 2013. "On decomposing inequality and poverty changes over time: A multi-dimensional decomposition," Economic Modelling, Elsevier, vol. 33(C), pages 8-18.
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