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Time And Income Poverty: An Interdependent Multidimensional Poverty Approach With German Time Use Diary Data

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  • Joachim Merz
  • Tim Rathjen

Abstract

type="main"> This study contributes to the multidimensional poverty discussion in two ways. First, we argue for and consider time—in particular genuine personal leisure time—as an important and prominent resource, additional to income, for everyday activities and individual well-being. Second, we evaluate and quantify the interdependence among the multiple poverty dimensions (via a CES well-being function and SOEP data) of the German population instead of arbitrarily choosing substitution parameters. We characterize the working poor and their multidimensional poverty regimes by descriptive results and by multinomial logit estimation based on German 2001/02 time use diary data. We find that the interdependence between time and income is significant. There is an important fraction of time poor individuals who are assigned not to compensate their time deficit even by above poverty threshold income. These poor people in particular have so far been ignored in the literature on poverty and well-being as well as the time pressure/time crunch.

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  • Joachim Merz & Tim Rathjen, 2014. "Time And Income Poverty: An Interdependent Multidimensional Poverty Approach With German Time Use Diary Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(3), pages 450-479, September.
  • Handle: RePEc:bla:revinw:v:60:y:2014:i:3:p:450-479
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    Cited by:

    1. Joachim Merz & Tim Rathjen, 2011. "Intensity of Time and Income Interdependent Multidimensional Poverty: Well-Being and Minimum 2DGAP ; German Evidence," SOEPpapers on Multidisciplinary Panel Data Research 411, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Joachim Merz & Tim Rathjen, 2016. "Entrepreneurs and Freelancers: Are They Time and Income Multidimensional Poor? - The German Case," FFB-Discussionpaper 102, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    3. Joachim Merz & Tim Rathjen, 2014. "Time And Income Poverty: An Interdependent Multidimensional Poverty Approach With German Time Use Diary Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(3), pages 450-479, September.
    4. Nicolai Suppa, 2018. "Towards a multidimensional poverty index for Germany," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 45(4), pages 655-683, November.
    5. Joachim Merz & Bettina Scherg, 2013. "Polarization of Time and Income: A Multidimensional Approach with Well-Being Gap and Minimum 2DGAP ; German Evidence," SOEPpapers on Multidisciplinary Panel Data Research 574, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. Busch, Christopher & Peichl, Andreas, 2010. "The Development of Multidimensional Poverty in Germany 1985-2007," IZA Discussion Papers 4922, Institute of Labor Economics (IZA).
    7. David Bell & Steffen Otterbach & Alfonso Sousa-Poza, 2012. "Work Hours Constraints and Health," Annals of Economics and Statistics, GENES, issue 105-106, pages 35-54.
    8. Nicolai Suppa, 2018. "Towards a multidimensional poverty index for Germany," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 45(4), pages 655-683, November.
    9. Joachim Merz & Tim Rathjen, 2011. "Zeit- und Einkommensarmut von Freien Berufen und Unternehmern," FFB-Discussionpaper 89, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    10. Iris Burmester & Bettina Scherg, 2013. "Polarisierung von Arbeitseinkommen im internationalen Vergleich – Empirische Befunde," FFB-Discussionpaper 96, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    11. Venn, Danielle & Strazdins, Lyndall, 2017. "Your money or your time? How both types of scarcity matter to physical activity and healthy eating," Social Science & Medicine, Elsevier, vol. 172(C), pages 98-106.
    12. Nicholas Rohde & Ross Guest, 2018. "Multidimensional Inequality Across Three Developed Countries," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(3), pages 576-591, September.
    13. Tim Rathjen, 2011. "Do Time Poor Individuals Pay More?," FFB-Discussionpaper 91, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    14. Cristian F. Sepulveda, 2019. "Time-saving Goods, Time Inequalities, and Optimal Taxation," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1902, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    15. Joachim Merz & Tim Rathjen, 2014. "Multidimensional time and income poverty: well-being gap and minimum 2DGAP poverty intensity – German evidence," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(4), pages 555-580, December.
    16. Merz, Joachim & Peters, Normen, 2019. "Parental Child Care Time, Income and Subjective Well-Being: A Multidimensional Polarization Approach for Germany," IZA Discussion Papers 12145, Institute of Labor Economics (IZA).
    17. Joachim Merz & Normen Peters, 2019. "Parental Child Care Time, Income and Subjective Well-Being: A Multidimensional Polarization Approach for Germany," SOEPpapers on Multidisciplinary Panel Data Research 1021, DIW Berlin, The German Socio-Economic Panel (SOEP).
    18. Joachim Merz & Henning Stolze, 2010. "Kumulation von Querschnitten - Evaluierung alternativer Konzepte für die kumulierten laufenden Wirtschaftsrechnungen 1999 bis 2003 im Vergleich zur Einkommens- und Verbrauchsstichprobe 2003," FFB-Discussionpaper 85, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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