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A note on the measurement of poverty persistence

Author

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  • Antonio Villar

    (Department of Economics, Universidad Pablo de Olavide)

Abstract

We propose in this paper a poverty index that considers poverty persistence as an integral part of poverty measurement. Poverty is regarded as a social welfare loss in a multiperiod scenario. Using familiar tools (logarithmic utilities and a utilitarian social welfare function) we obtain a poverty index which is mathematically simple, easy to interpret, that can be decomposed into incidence, intensity, and inequality, and is additively decomposable by population subgroups. It consists of the log of the geometric mean of individual intertemporal utility losses.

Suggested Citation

  • Antonio Villar, 2023. "A note on the measurement of poverty persistence," Working Papers 23.11, Universidad Pablo de Olavide, Department of Economics.
    • Handle: RePEc:pab:wpaper:23.11
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    References listed on IDEAS

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    1. Carlos Gradín & Coral Del Río & Olga Cantó, 2012. "Measuring Poverty Accounting For Time," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(2), pages 330-354, June.
    2. Claude D'Aspremont & Louis Gevers, 1977. "Equity and the Informational Basis of Collective Choice," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 44(2), pages 199-209.
    3. Alkire, Sabina & Apablaza, Mauricio & Chakravarty, Satya & Yalonetzky, Gaston, 2017. "Measuring chronic multidimensional poverty," Journal of Policy Modeling, Elsevier, vol. 39(6), pages 983-1006.
    4. Mary Jo Bane & David T. Ellwood, 1986. "Slipping into and out of Poverty: The Dynamics of Spells," Journal of Human Resources, University of Wisconsin Press, vol. 21(1), pages 1-23.
    5. Antonio Villar, 2023. "Welfare Poverty Measurement," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 24(2), pages 147-162, April.
    6. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Poverty persistence; welfares loss; logarithmic utility; utilitarian; decomposability.;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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