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Absolute and Relative Deprivation and the Measurement of Poverty

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Abstract

This paper develops the link between poverty and inequality by focussing on a class of poverty indices (some of them well-known) which aggregate normative concerns for absolute and relative deprivation. The indices are distinguished by a parameter that captures the ethical sensitivity of poverty measurement to ``exclusion'' or ``relative-deprivation'' aversion. We also show how the indices can be readily used to predict the impact of growth on poverty. An illustration using LIS data finds that he United States show more relative deprivation than Denmark and Belgium whatever the percentiles considered, but that overall deprivation comparisons of the four countries considered will generally necessarily depend on the intensity of the ethical concern for relative deprivation. The impact of growth on poverty is also seen to depend on the presence of and on the attention granted to concerns over relative deprivation. }

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  • Jean-Yves Duclos & Philippe Gregoire, 2001. "Absolute and Relative Deprivation and the Measurement of Poverty," UFAE and IAE Working Papers 477.01, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
  • Handle: RePEc:aub:autbar:477.01
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    Cited by:

    1. Sami Bibi & Jean-Yves Duclos, 2007. "Poverty-decreasing indirect tax reforms: Evidence from Tunisia," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(2), pages 165-190, April.
    2. Conchita D’Ambrosio & Joachim Frick, 2007. "Income Satisfaction and Relative Deprivation: An Empirical Link," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 81(3), pages 497-519, May.
    3. D'Ambrosio, Conchita & Frick, Joachim R., 2004. "Subjective Well-Being and Relative Deprivation: An Empirical Link," IZA Discussion Papers 1351, Institute for the Study of Labor (IZA).
    4. Aloys Prinz & Björn Bünger, "undated". "From ’Full Life’ to ’Balanced Life’: Extending Martin Seligman’s Route to Happiness," Working Papers 200115, Institute of Spatial and Housing Economics, Munster Universitary.
    5. Fafchamps, Marcel & Shilpi, Forhad, 2008. "Subjective welfare, isolation, and relative consumption," Journal of Development Economics, Elsevier, pages 43-60.
    6. Heikki Hiilamo & Reijo Sund & Seppo Sallila, 2004. "Rethinking the Measures of Poverty," LIS Working papers 368, LIS Cross-National Data Center in Luxembourg.
    7. Franz F. Eiffe & Karin Heitzmann, 2006. "Armut im Kontext reicher Staaten: zur wissenschaftlichen Operationalisierung eines normativen Begriffs," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 75(1), pages 43-57.
    8. Marek Kośny, 2012. "Relative Income Changes and an Identification of Growth Pattern," Working Papers 268, ECINEQ, Society for the Study of Economic Inequality.
    9. Sami Bibi, 2005. "When is Economic Growth Pro-Poor? Evidence from Tunisia," Cahiers de recherche 0522, CIRPEE.
    10. Bibi, Sami & Duclos, Jean-Yves, 2007. "Equity and policy effectiveness with imperfect targeting," Journal of Development Economics, Elsevier, pages 109-140.
    11. Corak, Miles, 2005. "Principles and Practicalities for Measuring Child Poverty in the Rich Countries," IZA Discussion Papers 1579, Institute for the Study of Labor (IZA).
    12. repec:eee:hapoch:v1_905 is not listed on IDEAS
    13. Sami Bibi, 2006. "Growth with Equity is Better for the Poor," Cahiers de recherche 0640, CIRPEE.
    14. Edward Anderson & Lucio Esposito, 2014. "On the joint evaluation of absolute and relative deprivation," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(3), pages 411-428, September.
    15. Prinz, Aloys & Bünger, Björn, 2009. "From full life to balanced life: Extending Martin Seligman's route to happiness," CAWM Discussion Papers 17, University of Münster, Center of Applied Economic Research Münster (CAWM).
    16. Marchand, J. & Smeeding, T., 2016. "Poverty and Aging," Handbook of the Economics of Population Aging, Elsevier.
      • Marchand, Joseph & Smeeding, Timothy, 2016. "Poverty and Aging," Working Papers 2016-11, University of Alberta, Department of Economics, revised 20 Nov 2016.
    17. Amélia Bastos & Carla Machado & José Passos, 2010. "The profile of income-poor children," International Journal of Social Economics, Emerald Group Publishing, vol. 37(12), pages 933-950, October.
    18. Alfredo Serrano Mancilla, 2006. "Reformas socialmente eficientes del IVA en España," Investigaciones Economicas, Fundación SEPI, vol. 30(2), pages 381-398, May.

    More about this item

    Keywords

    Poverty; relative deprivation; inequality; poverty alleviation;

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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