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Income Distribution and Consumption Deprivation: An Analytical Link

Author

Listed:
  • Sushanta K. Mallick

    (Queen Mary, University of London)

Abstract

This article conceives poverty in terms of the consumption of essential food, makes use of a new deprivation (or poverty) function, and examines the effects of changes in the mean and the variance of the income distribution on poverty, assuming a log-normal income distribution. The presence of a saturation level of consumption can be treated as a poverty-line threshold as opposed to an exogenous income-based poverty line. Within such a consumption deprivation approach, the article proves analytically that rising mean income reduces poverty while rising variance of income distribution increases poverty.

Suggested Citation

  • Sushanta K. Mallick, 2008. "Income Distribution and Consumption Deprivation: An Analytical Link," Journal of Income Distribution, Ad libros publications inc., vol. 17(2), pages 25-36, June.
    • Handle: RePEc:jid:journl:y:2008:v:17:i:2:p:25-36
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    File URL: http://jid.journals.yorku.ca/index.php/jid/article/view/17810
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    Citations

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    Cited by:

    1. Diana Bílková, 2016. "Vliv délky praxe na výši mezd zaměstnanců v České republice od počátku hospodářské recese v roce 2009 [Influence of Length of Practice on Wages of Employees in the Czech Republic in the Period from," Politická ekonomie, Prague University of Economics and Business, vol. 2016(6), pages 674-694.
    2. Zhao, Jun & Dong, Kangyin & Taghizadeh-Hesary, Farhad, 2023. "Is income inequality a stumbling block to the global natural gas market?," Energy Economics, Elsevier, vol. 118(C).
    3. Peltonen, Tuomas A. & Sousa, Ricardo M. & Vansteenkiste, Isabel S., 2012. "Wealth effects in emerging market economies," International Review of Economics & Finance, Elsevier, vol. 24(C), pages 155-166.
    4. Diana Bílková, 2015. "Financial Position of Czech Employees at the Beginning of the 3rd Millennium according to Educational Attainment," Prague Economic Papers, Prague University of Economics and Business, vol. 2015(3), pages 307-331.
    5. Diana Bílková, 2015. "What is About Wages in the Czech Education and Healthcare Sectors Before, during and after the Global Economic Recession?," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(1), pages 58-72, January.

    More about this item

    Keywords

    inequality; income distribution; consumption deprivation;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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