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Measuring inequality of poverty: theory and an application to India

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  • Singh, Ashish

Abstract

The commonly used poverty indices measure the overall level of poverty in a society but fail to capture the differential intensity across different socioeconomic groups. This paper proposes a new measure, Inequality of Poverty Index (similar to dissimilarity index in the literature on inequality of opportunity) which captures inequality in distribution of poverty across different subgroups. It can be used to determine the major socioeconomic factors/characteristics/circumstances causing between-group disparity in poverty and effect of a specific factor on poverty relative to other factors and time. The paper also provides an application of the index and potential policy implications.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 26770.

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Date of creation: 15 May 2010
Date of revision: 15 Nov 2010
Handle: RePEc:pra:mprapa:26770

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Keywords: Poverty; Inequality; Inequality of Poverty Index;

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  1. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, Econometric Society, vol. 52(3), pages 761-66, May.
  2. Sonalde Desai & Veena Kulkarni, 2008. "Changing educational inequalities in india in the context of affirmative action," Demography, Springer, Springer, vol. 45(2), pages 245-270, May.
  3. Anand, Sudhir, 1977. "Aspects of Poverty in Malaysia," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 23(1), pages 1-16, March.
  4. Singh, Ashish, 2010. "Inequality of opportunity in India," MPRA Paper, University Library of Munich, Germany 32971, University Library of Munich, Germany.
  5. Ashish Singh, 2010. "The Effect of Family Background on Individual Wages and an Examination of Inequality of Opportunity in India," Journal of Labor Research, Springer, Springer, vol. 31(3), pages 230-246, September.
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