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Unemployment and Vulnerability: A Class of Distribution Sensitive Measures, its Axiomatic Properties, and Applications

In: Rational Choice and Social Welfare

Author

Listed:
  • Kaushik Basu

    (Cornell University)

  • Patrick Nolen

    (University of Essex)

Abstract

Traditional measures of unemployment were only concerned with the total number of people unemployed. In recent years such measures have come under criticism for ignoring those who may not currently be unemployed but are vulnerable, that is, they live under the risk of becoming unemployed (see Cunningham and Maloney (2000), Glewwe and Hall (1998), Thorbecke (2003)). Alongside this criticism a small but rapidly growing literature is emerging that looks at various aspects of vulnerability and tries to measure it (Amin, Rai, and Topa (2003), Ligon and Schechter (2003), Pritchett, Suryahadi, and Sumarto (2000)).1

Suggested Citation

  • Kaushik Basu & Patrick Nolen, 2008. "Unemployment and Vulnerability: A Class of Distribution Sensitive Measures, its Axiomatic Properties, and Applications," Studies in Choice and Welfare, in: Prasanta K. Pattanaik & Koichi Tadenuma & Yongsheng Xu & Naoki Yoshihara (ed.), Rational Choice and Social Welfare, pages 237-258, Springer.
    • Handle: RePEc:spr:stcchp:978-3-540-79832-3_13
    DOI: 10.1007/978-3-540-79832-3_13
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    Citations

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    Cited by:

    1. Markus Jäntti & Ravi Kanbur & Milla Nyyssölä & Jukka Pirttilä, 2014. "Poverty and Welfare Measurement on the Basis of Prospect Theory," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(1), pages 182-205, March.
    2. Markus Jäntti & Ravi Kanbur & Milla Nyyssölä & Jukka Pirttilä, 2014. "Poverty and Welfare Measurement on the Basis of Prospect Theory," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(1), pages 182-205, March.
    3. Iacono, Roberto & Ranaldi, Marco, 2020. "The wage curve across the wealth distribution," Economics Letters, Elsevier, vol. 196(C).

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