Does How You Measure Income Make a Difference to Measuring Poverty? Evidence from the UK
Income is regarded as one of the clearest indicators of socioeconomic status and wellbeing in the developed world and is highly correlated with a wide range of outcomes. Despite its importance, there remains an issue as to the best way to collect income as part of surveys. This paper examines differences in how income is collected in a nationally representative UK birth cohort, the Millennium Cohort Study, looking at variations by questions asked and by respondent characteristics before then examining the implications different methods of collecting and reporting income may have for measuring poverty. Results show that less than a third of respondents give consistent information on income between measurement tools. Using multiple questions is associated with a substantially lower response rate but this method generally results in a higher estimate of family income than using a single question. This is particularly true for certain groups of the population—those on means tested benefits, in self-employment and in part-time employment. Not surprisingly then in our analysis of poverty, using a single question produces an inflated proportion of families who could be classified as living in poverty and is less associated with other measures of financial deprivation than the more conservative poverty measure based on multiple questions. Copyright Springer Science+Business Media B.V. 2013
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 110 (2013)
Issue (Month): 3 (February)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/journal/11135|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Claudia Biancotti & Giovanni D'Alessio & Andrea Neri, 2008. "Measurement Error In The Bank Of Italy'S Survey Of Household Income And Wealth," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(3), pages 466-493, 09.
- Clarke, Philip M. & Fiebig, Denzil G. & Gerdtham, Ulf-G., 2008. "Optimal recall length in survey design," Journal of Health Economics, Elsevier, vol. 27(5), pages 1275-1284, September.
- Francesconi, Marco & Sutherland, Holly & Zantomio, Francesca, 2009.
"A comparison of earnings measures from longitudinal and cross-sectional surveys: evidence from the UK,"
ISER Working Paper Series
2009-14, Institute for Social and Economic Research.
- Marco Francesconi & Holly Sutherland & Francesca Zantomio, 2011. "A comparison of earnings measures from longitudinal and cross‐sectional surveys: evidence from the UK," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 174(2), pages 297-326, 04.
- Kirstine Hansen & Stephen Machin, 2002.
"Spatial Crime Patterns and the Introduction of the UK Minimum Wage,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 64(s1), pages 677-697, 08.
- Hansen, Kirstine & Machin, Stephen, 2002. " Spatial Crime Patterns and the Introduction of the UK Minimum Wage," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(0), pages 677-697, Supplemen.
- John Micklewright & Sylke V. Schnepf, 2010.
"How reliable are income data collected with a single question?,"
Journal of the Royal Statistical Society Series A,
Royal Statistical Society, vol. 173(2), pages 409-429.
- John Micklewright & Sylke V. Schnepf, 2009. "How Reliable are Income Data Collected with a Single Question?," DoQSS Working Papers 09-03, Department of Quantitative Social Science - UCL Institute of Education, University College London.
- Micklewright, John & Schnepf, Sylke V., 2007. "How Reliable Are Income Data Collected with a Single Question?," IZA Discussion Papers 3177, Institute for the Study of Labor (IZA).
- Easterlin, Richard A, 2001. "Income and Happiness: Towards an Unified Theory," Economic Journal, Royal Economic Society, vol. 111(473), pages 465-484, July.
- Jörg-Peter Schräpler, 2006. "Explaining Income Nonresponse – A Case Study by means of the British Household Panel Study (BHPS)," Quality & Quantity: International Journal of Methodology, Springer, vol. 40(6), pages 1013-1036, December.
When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:110:y:2013:i:3:p:1119-1140. 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: (Sonal Shukla)or (Rebekah McClure)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.