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Absolute and Relative Deprivation and the Measurement of Poverty

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  • Duclos, Jean-Yves

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  • Grégoire, Philippe

Abstract

This paper develops the link between poverty and inequality by focussing on a class of poverty indices (some of them well-known) which aggregate normative concerns for absolute and relative deprivation. The indices are distinguished by a parameter that captures the ethical sensitivity of poverty measurement to "exclusion" or "relative-deprivation" aversion. We also show how the indices can be readily used to predict the impact of growth on poverty. An illustration using LIS data finds that the United States show more relative deprivation than Denmark and Belgium whatever the percentiles considered, but that overall deprivation comparisons of the four countries considered will generally necessarily depend on the intensity of the ethical concern for relative deprivation. The impact of growth on poverty is also seen to depend on the presence of and on the attention granted to concerns over relative deprivation.

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Bibliographic Info

Paper provided by Université Laval - Département d'économique in its series Cahiers de recherche with number 9910.

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Date of creation: 1999
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Handle: RePEc:lvl:laeccr:9910

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Keywords: Poverty; Relative deprivation; Inequality; Poverty alleviation;

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Citations

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Cited by:
  1. Prinz, Aloys & Bünger, Björn, 2009. "From full life to balanced life: Extending Martin Seligman's route to happiness," CAWM Discussion Papers 17, Center of Applied Economic Research Münster (CAWM), University of Münster.
  2. Conchita D'Ambrosio & Joachim R. Frick, 2004. "Subjective Well-Being and Relative Deprivation: An Empirical Link," Discussion Papers of DIW Berlin 449, DIW Berlin, German Institute for Economic Research.
  3. Marek Kośny, 2012. "Relative Income Changes and an Identification of Growth Pattern," Working Papers 268, ECINEQ, Society for the Study of Economic Inequality.
  4. Fafchamps, Marcel & Shilpi, Forhad, 2006. "Subjective Welfare, Isolation and Relative Consumption," CEPR Discussion Papers 6002, C.E.P.R. Discussion Papers.
  5. Sami Bibi, 2006. "Growth with Equity is Better for the Poor," Cahiers de recherche 0640, CIRPEE.
  6. Sami Bibi & Jean-Yves Duclos, 2007. "Poverty-decreasing indirect tax reforms: Evidence from Tunisia," International Tax and Public Finance, Springer, vol. 14(2), pages 165-190, April.
  7. Aloys Prinz & Björn Bünger, . "From ’Full Life’ to ’Balanced Life’: Extending Martin Seligman’s Route to Happiness," Working Papers 200115, Institute of Spatial and Housing Economics, Munster Universitary.
  8. Sami Bibi & Jean-Yves Duclos, 2004. "Equity and Policy Effectiveness with Imperfect Targeting," Working Papers 0423, Economic Research Forum, revised Oct 2004.
  9. Amélia Bastos & Carla Machado & José Passos, 2010. "The profile of income-poor children," International Journal of Social Economics, Emerald Group Publishing, vol. 37(12), pages 933-950, October.
  10. Sami Bibi, 2005. "When is Economic Growth Pro-Poor? Evidence from Tunisia," Cahiers de recherche 0522, CIRPEE.
  11. Conchita D’Ambrosio & Joachim Frick, 2007. "Income Satisfaction and Relative Deprivation: An Empirical Link," Social Indicators Research, Springer, vol. 81(3), pages 497-519, May.
  12. Alfredo Serrano Mancilla, 2006. "Reformas socialmente eficientes del IVA en España," Investigaciones Economicas, Fundación SEPI, vol. 30(2), pages 381-398, May.
  13. Corak, Miles, 2005. "Principles and Practicalities for Measuring Child Poverty in the Rich Countries," IZA Discussion Papers 1579, Institute for the Study of Labor (IZA).
  14. Franz F. Eiffe & Karin Heitzmann, 2006. "Armut im Kontext reicher Staaten: zur wissenschaftlichen Operationalisierung eines normativen Begriffs," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 75(1), pages 43-57.

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