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Measuring Chronic Poverty

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  • Maria Emma Santos

Abstract

A new class of chronic poverty measures is constructed that builds upon Jalan and Ravallion (1998) but does not require resources in different periods to be perfect substitutes when identifying the chronically poor. We use a general mean to combine the resources of a person into a permanent income standard that is then compared to a poverty line to determine when a person is chronically poor. The parameter of the general mean allows for varying degrees of substitutability over time. The decomposable Clark, Hemming and Ulph (1981) poverty measure is applied to the distribution of permanent income standards to measure overall chronic poverty. Each measure has a convenient expression in terms of a censored matrix and satisfies a host of properties including decomposability. We provide an empirical application of the new measures using panel data from urban areas in Argentina.

Suggested Citation

  • Maria Emma Santos, 2012. "Measuring Chronic Poverty," OPHI Working Papers 52, Queen Elizabeth House, University of Oxford.
    • Handle: RePEc:qeh:ophiwp:ophiwp052
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    File URL: https://ophi.org.uk/measuring-chronic-poverty/
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    References listed on IDEAS

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    4. Leonardo Gasparini & Pablo Gluzmann & Leopoldo Tornarolli, 2019. "Pobreza Crónica en Datos de Corte Transversal: Estimaciones para Argentina," CEDLAS, Working Papers 0252, CEDLAS, Universidad Nacional de La Plata.
    5. Mai, Tung & Mahadevan, Renuka, 2016. "A research note on the poverty dynamics and cost of poverty inequality: Case study of Indonesia," Economic Analysis and Policy, Elsevier, vol. 49(C), pages 100-107.
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    7. Rocío García Díaz & Daniel Prudencio, 2017. "A long-term employment index for Mexico," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 32(1), pages 133-165.

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