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Rethinking the Sociological Measurement of Poverty

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  • David Brady

Abstract

Despite serious methodological problems, quantitative studies of poverty by U.S. sociologists predominantly rely on the official U.S. measure. After reviewing the shortcomings of the official measure, this paper examines several econometric and theoretical advances in poverty measurement. In turn, I argue than an ideal measure of poverty should: a) measure comparative historical variation effectively; b) be relative rather than absolute; c) conceptualize poverty as social exclusion; d) integrate the depth of poverty and the inequality among the poor; and, e) assess the impact of taxes, transfers and non-cash benefits. Next, this paper evaluates sociological studies published in the 1990s for their consideration of these criteria. Due to sociologys neglect of these criteria, this paper develops three alternative poverty indices: the Interval Measure, the Ordinal Measure, and the Sum of Ordinals Measure. Finally, with the Luxembourg Income Study, I examine the empirical patterns with these three measures, across advanced capitalist democracies from 1967 to 1997. Estimates of these poverty indices are made available for future research.

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  • David Brady, 2002. "Rethinking the Sociological Measurement of Poverty," LIS Working papers 264, LIS Cross-National Data Center in Luxembourg.
    • Handle: RePEc:lis:liswps:264
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    References listed on IDEAS

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    1. Robert K. Triest, 1998. "Has Poverty Gotten Worse?," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 97-114, Winter.
    2. Barry, Brian, 1998. "Social exclusion, social isolation and the distribution of income," LSE Research Online Documents on Economics 6516, London School of Economics and Political Science, LSE Library.
    3. Timothy Smeeding & Gunther Schmaus & Brigitte Buhmann & Lee Rainwater, 1988. "Equivalence Scales, Well-Being, Inequality and Poverty: Sensitivity Estimates Across Ten Countries Using the LIS Database," LIS Working papers 17, LIS Cross-National Data Center in Luxembourg.
    4. Smeeding, Timothy M, et al, 1993. "Poverty, Inequality, and Family Living Standards Impacts across Seven Nations: The Effect of Noncash Subsidies for Health, Education and Housing," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(3), pages 229-256, September.
    5. David Madden, 2000. "Relative Or Absolute Poverty Lines: A New Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(2), pages 181-199, June.
    6. Madden, David, 2000. "Relative or Absolute Poverty Lines: A New Approach," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(2), pages 181-199, June.
    7. Foster, James E, 1998. "Absolute versus Relative Poverty," American Economic Review, American Economic Association, vol. 88(2), pages 335-341, May.
    8. Kakwani, Nanak, 1993. "Statistical Inference in the Measurement of Poverty," The Review of Economics and Statistics, MIT Press, vol. 75(4), pages 632-639, November.
    9. Dale W. Jorgenson, 1998. "Did We Lose the War on Poverty?," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 79-96, Winter.
    10. Joakim Palme & Walter Korpi, 1998. "The Paradox of Redistribution and Strategies of Equality: Welfare State Institutions, Inequality and Poverty in the Western Countries," LIS Working papers 174, LIS Cross-National Data Center in Luxembourg.
    11. Myles, John & Picot, Garnett, 2000. "Poverty Indices and Policy Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(2), pages 161-179, June.
    12. Brigitte Buhmann & Lee Rainwater & Guenther Schmaus & Timothy M. Smeeding, 1988. "Equivalence Scales, Well‐Being, Inequality, And Poverty: Sensitivity Estimates Across Ten Countries Using The Luxembourg Income Study (Lis) Database," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 115-142, June.
    13. Brian Barry, 1998. "Social Exclusion, Social Isolation and the Distribution of Income," CASE Papers case12, Centre for Analysis of Social Exclusion, LSE.
    14. Takayama, Noriyuki, 1979. "Poverty, Income Inequality, and Their Measures: Professor Sen's Axiomatic Approach Reconsidered," Econometrica, Econometric Society, vol. 47(3), pages 747-759, May.
    15. Buhmann, Brigitte, et al, 1988. "Equivalence Scales, Well-Being, Inequality, and Poverty: Sensitivity Estimates across Ten Countries Using the Luxembourg Income Study (LIS) Database," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 34(2), pages 115-142, June.
    16. Lane Kenworthy, 1998. "Do Social-Welfare Policies Reduce Poverty? A Cross-National Assessment," LIS Working papers 188, LIS Cross-National Data Center in Luxembourg.
    17. John Myles & Garnett Picot, 2000. "Poverty Indices And Policy Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(2), pages 161-179, June.
    18. Slesnick, Daniel T, 1993. "Gaining Ground: Poverty in the Postwar United States," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 1-38, February.
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    Cited by:

    1. Heikki Hiilamo & Reijo Sund & Seppo Sallila, 2004. "Rethinking the Measures of Poverty," LIS Working papers 368, LIS Cross-National Data Center in Luxembourg.
    2. Vani K. Borooah & Paddy Hillyard & Mike Tomlinson, 2006. "Equity‐Sensitive Indicators Of Living Standards With An Application To Northern Ireland," Scottish Journal of Political Economy, Scottish Economic Society, vol. 53(5), pages 616-635, November.

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