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Welfare-poverty measurement

Author

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  • Antonio Villar

    (Department of Economics, Universidad Pablo de Olavide; IVIE)

Abstract

This paper provides an approach to poverty measurement that relies on the interpretation of poverty as a welfare loss. Our contribution is twofold. On the one hand, we analyse the relationship between individual and aggregate indicators, by introducing the notion of “distributive impact of poverty” (a measure of the poverty loss due to the inequality among the poor). We show that a welfare inequality measure can be expressed as the sum of the average individual welfare poverty plus the distributive impact of poverty. On the other hand, we extend the analysis to the case of a society made of several population subgroups, by using a decomposability principle consistent with this approach. An empirical application, regarding educational poverty in the OECD, out of the data in PISA 2009, illustrates the extent of our method.

Suggested Citation

  • Antonio Villar, 2012. "Welfare-poverty measurement," Working Papers 12.02, Universidad Pablo de Olavide, Department of Economics.
    • Handle: RePEc:pab:wpaper:12.02
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    References listed on IDEAS

    as
    1. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    2. Pyatt, Graham, 1987. "Measuring Welfare, Poverty and Inequality," Economic Journal, Royal Economic Society, vol. 97(386), pages 459-467, June.
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    Cited by:

    1. Antonio Villar, 2023. "A note on the measurement of poverty persistence," Working Papers 23.11, Universidad Pablo de Olavide, Department of Economics.

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    More about this item

    Keywords

    poverty; welfare loss; individual poverty measure; distributive impact of poverty;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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