IDEAS home Printed from
   My bibliography  Save this article

On the contribution of the three I's of poverty to chronic and transitory poverty


  • Osnat Israeli

    () (Department of Economics, Ashkelon Academic College, Israel)

  • Michal Weber

    () (Department of Management, Bar-Ilan University, Israel)


This paper uses the Watts poverty index in order to derive a breakdown of poverty into chronic and transitory poverty. Following a paper by Chakravarty et al. (2008), we then suggest a new decomposition of these two components. Using the new decomposition, we are able to analyze the contribution of the "three I's of poverty" (see, Jenkins and Lambert, 1997), the incidence of poverty (i.e. the head count ratio), intensity (depth) of poverty (i.e. the Watts poverty gap ratio) and inequality among the poor (i.e. the mean logarithm deviation index of income inequality among the poor) to chronic and transitory poverty. An empirical illustration is also presented, based on a panel built by the Central Bureau of Statistics in Israel on the basis of administrative data during the period 1995-2006. The results show that chronic poverty is 57% of total poverty, and is affected more by the intensity (depth) of poverty than by inequality among the poor, while transitory poverty is roughly equally affected by the three I's of poverty.

Suggested Citation

  • Osnat Israeli & Michal Weber, 2011. "On the contribution of the three I's of poverty to chronic and transitory poverty," Economics Bulletin, AccessEcon, vol. 31(2), pages 1496-1508.
  • Handle: RePEc:ebl:ecbull:eb-10-00720

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Joan R Rodgers & John L. Rodgers, 2010. "Chronic and Transitory Poverty over the Life Cycle," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 13(2), pages 117-136.
    Full references (including those not matched with items on IDEAS)

    More about this item


    chronic poverty; transitory poverty; Watts index; decomposition;

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • D3 - Microeconomics - - Distribution


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-10-00720. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (John P. Conley). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.