IDEAS home Printed from https://ideas.repec.org/p/ces/ceswps/_8169.html
   My bibliography  Save this paper

Poverty and Individual Responsibility

Author

Listed:
  • Paolo Giovanni Piacquadio

Abstract

Poverty-reducing policies ought to prioritize the “deserving” poor, that is, those who do all that can be reasonably expected from them in their circumstances, but fail to achieve a minimum standard of living. To inform such policies, one needs a theory of justice accommodating norms of individual responsibility. I propose and axiomatically characterize a family of poverty indices that address these issues. Formally, poverty is measured by the sum of specific indices of individual deprivation which (i) keep individuals accountable for their choices, (ii) compare individuals based on the set of attainments they are deprived of, and (iii) prioritize the most deprived individuals. I illustrate the results with Norwegian register data. Among single males, about a third of the income-poor ones are “undeserving,” because (based on the estimates) they are unwilling to accept a job that brings them out of poverty.

Suggested Citation

  • Paolo Giovanni Piacquadio, 2020. "Poverty and Individual Responsibility," CESifo Working Paper Series 8169, CESifo.
  • Handle: RePEc:ces:ceswps:_8169
    as

    Download full text from publisher

    File URL: https://www.cesifo.org/DocDL/cesifo1_wp8169.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fleurbaey,Marc & Maniquet,François, 2011. "A Theory of Fairness and Social Welfare," Cambridge Books, Cambridge University Press, number 9780521715348.
    2. Angus Deaton, 2016. "Measuring and Understanding Behavior, Welfare, and Poverty," American Economic Review, American Economic Association, vol. 106(6), pages 1221-1243, June.
    3. Kanbur, Ravi & Keen, Michael & Tuomala, Matti, 1994. "Optimal non-linear income taxation for the alleviation of income-poverty," European Economic Review, Elsevier, vol. 38(8), pages 1613-1632, October.
    4. Robert C. Allen, 2017. "Absolute Poverty: When Necessity Displaces Desire," American Economic Review, American Economic Association, vol. 107(12), pages 3690-3721, December.
    5. Jean-Yves Duclos & David E. Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Poverty Comparisons," Economic Journal, Royal Economic Society, vol. 116(514), pages 943-968, October.
    6. Koen Decancq & Marc Fleurbaey & François Maniquet, 2019. "Multidimensional poverty measurement with individual preferences," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(1), pages 29-49, March.
    7. Aaberge, Rolf & Colombino, Ugo & Strom, Steinar, 1999. "Labour Supply in Italy: An Empirical Analysis of Joint Household Decisions, with Taxes and Quantity Constraints," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(4), pages 403-422, July-Aug..
    8. J. A. Mirrlees, 1971. "An Exploration in the Theory of Optimum Income Taxation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 38(2), pages 175-208.
    9. Jean-Yves Duclos & Luca Tiberti, 2016. "Multidimensional poverty indices: A critical assessment," Cahiers de recherche 1602, CIRPEE.
    10. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-764, July.
    11. Walter Bossert & Satya R. Chakravarty & Conchita D’Ambrosio, 2019. "Multidimensional Poverty and Material Deprivation with Discrete Data," Themes in Economics, in: Satya R. Chakravarty (ed.), Poverty, Social Exclusion and Stochastic Dominance, pages 191-209, Springer.
    12. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    13. Erik Thorbecke, 2011. "A comment on multidimensional poverty indices," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(3), pages 485-487, September.
    14. Fleurbaey, Marc & Schokkaert, Erik, 2009. "Unfair inequalities in health and health care," Journal of Health Economics, Elsevier, vol. 28(1), pages 73-90, January.
    15. Martin Ravallion, 2011. "On multidimensional indices of poverty," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(2), pages 235-248, June.
    16. Geeta Gandhi Kingdon & John Knight, 2006. "Subjective well-being poverty vs. Income poverty and capabilities poverty?," Journal of Development Studies, Taylor & Francis Journals, vol. 42(7), pages 1199-1224.
    17. Pirttila, Jukka & Tuomala, Matti, 2004. "Poverty alleviation and tax policy," European Economic Review, Elsevier, vol. 48(5), pages 1075-1090, October.
    18. Sudhir Anand and Amartya Sen, 1994. "Human development Index: Methodology and Measurement," Human Development Occasional Papers (1992-2007) HDOCPA-1994-02, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    19. Mark Aguiar & Mark Bils & Kerwin Kofi Charles & Erik Hurst, 2021. "Leisure Luxuries and the Labor Supply of Young Men," Journal of Political Economy, University of Chicago Press, vol. 129(2), pages 337-382.
    20. Kannai, Yakar, 1977. "Concavifiability and constructions of concave utility functions," Journal of Mathematical Economics, Elsevier, vol. 4(1), pages 1-56, March.
    21. Sabina Alkire, James E. Foster, Suman Seth, Maria Emma Santos, Jose M. Roche and Paola Ballon, 2015. "Multidimensional Poverty Measurement and Analysis: Chapter 9 - Distribution and Dynamics," OPHI Working Papers ophiwp090_ch9.pdf, Queen Elizabeth House, University of Oxford.
    22. François Bourguignon & Satya R. Chakravarty, 2019. "The Measurement of Multidimensional Poverty," Themes in Economics, in: Satya R. Chakravarty (ed.), Poverty, Social Exclusion and Stochastic Dominance, pages 83-107, Springer.
    23. Udo Ebert & Patrick Moyes, 2003. "Equivalence Scales Reconsidered," Econometrica, Econometric Society, vol. 71(1), pages 319-343, January.
    24. Lingxiao Zhao & Gregory Burge, 2017. "Housing Wealth, Property Taxes, and Labor Supply among the Elderly," Journal of Labor Economics, University of Chicago Press, vol. 35(1), pages 227-263.
    25. Debreu, Gerard, 1976. "Least concave utility functions," Journal of Mathematical Economics, Elsevier, vol. 3(2), pages 121-129, July.
    26. Sabina Alkire, James E. Foster, Suman Seth, Maria Emma Santos, José M. Roche and Paola Ballon, 2015. "Multidimensional Poverty Measurement and Analysis: Chapter 7 - Data and Analysis," OPHI Working Papers ophiwp088_ch7.pdf, Queen Elizabeth House, University of Oxford.
    27. Paolo Giovanni Piacquadio, 2017. "A Fairness Justification of Utilitarianism," Econometrica, Econometric Society, vol. 85, pages 1261-1276, July.
    28. Chakravarty, Satya R. & Mukherjee, Diganta, 1998. "Optimal subsidy for the poor," Economics Letters, Elsevier, vol. 61(3), pages 313-319, December.
    29. Lewbel, Arthur, 1989. "Household equivalence scales and welfare comparisons," Journal of Public Economics, Elsevier, vol. 39(3), pages 377-391, August.
    30. Alkire, Sabina & Foster, James & Seth, Suman & Santos, Maria Emma & Roche, Jose Manuel & Ballon, Paola, 2015. "Multidimensional Poverty Measurement and Analysis," OUP Catalogue, Oxford University Press, number 9780199689491.
    31. Hicks, Norman & Streeten, Paul, 1979. "Indicators of development: The search for a basic needs yardstick," World Development, Elsevier, vol. 7(6), pages 567-580, June.
    32. Sabina Alkire, James E. Foster, Suman Seth, Maria Emma Santos, José M. Roche and Paola Ballon, 2015. "Multidimensional Poverty Measurement and Analysis: Chapter 2 - The Framework," OPHI Working Papers ophiwp083_ch2.pdf, Queen Elizabeth House, University of Oxford.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. M. Azhar Hussain & Nikolaj Siersbæk & Lars Peter Østerdal, 2020. "Multidimensional welfare comparisons of EU member states before, during, and after the financial crisis: a dominance approach," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(4), pages 645-686, December.
    2. Decerf,Benoit Marie A & Ferrando,Mery & Quinn,Natalie N., 2021. "Global Income Poverty Measurement with Preference Heterogeneity : Theory and Application," Policy Research Working Paper Series 9844, The World Bank.
    3. Suman Seth and Gaston Yalonetzky, 2018. "Assessing Deprivation with Ordinal Variables: Depth Sensitivity and Poverty Aversion," OPHI Working Papers ophiwp123.pdf, Queen Elizabeth House, University of Oxford.
    4. Espinoza-Delgado, José & Silber, Jacques, 2018. "Multi-dimensional poverty among adults in Central America and gender differences in the three I’s of poverty: Applying inequality sensitive poverty measures with ordinal variables," MPRA Paper 88750, University Library of Munich, Germany.
    5. Espinoza-Delgado, José & Klasen, Stephan, 2018. "Gender and multidimensional poverty in Nicaragua: An individual based approach," World Development, Elsevier, vol. 110(C), pages 466-491.
    6. Bénédicte Apouey & David Madden, 2023. "Health poverty," Chapters, in: Jacques Silber (ed.), Research Handbook on Measuring Poverty and Deprivation, chapter 19, pages 202-211, Edward Elgar Publishing.
    7. Burhan Can Karahasan & Fırat Bilgel, 2021. "The Topography and Sources of Multidimensional Poverty in Turkey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 154(2), pages 413-445, April.
    8. Shatakshee Dhongde & Yi Li & Prasanta K. Pattanaik & Yongsheng Xu, 2016. "Binary data, hierarchy of attributes, and multidimensional deprivation," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(4), pages 363-378, December.
    9. Francisco Azpitarte & Jose Gallegos & Gaston Yalonetzky, 2020. "On the robustness of multidimensional counting poverty orderings," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(3), pages 339-364, September.
    10. Yadira Diaz, 2015. "Differences in needs and multidimensional deprivation measurement," Working Papers 387, ECINEQ, Society for the Study of Economic Inequality.
    11. Kelly Kilburn & Lucia Ferrone & Audrey Pettifor & Ryan Wagner & F. Xavier Gómez-Olivé & Kathy Kahn, 2020. "The Impact of a Conditional Cash Transfer on Multidimensional Deprivation of Young Women: Evidence from South Africa’s HTPN 068," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(3), pages 865-895, October.
    12. Jing Yang & Pundarik Mukhopadhaya, 2019. "Is the ADB’s Conjecture on Upward Trend in Poverty for China Right? An Analysis of Income and Multidimensional Poverty in China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(2), pages 451-477, June.
    13. Pinaki Das & Bibek Paria & Shama Firdaush, 2021. "Juxtaposing Consumption Poverty and Multidimensional Poverty: A Study in Indian Context," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 469-501, January.
    14. Gallardo, Mauricio, 2022. "Measuring vulnerability to multidimensional poverty with Bayesian network classifiers," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 492-512.
    15. Klasen, Stephan & Villalobos, Carlos, 2020. "Diverging identification of the poor: A non-random process. Chile 1992–2017," World Development, Elsevier, vol. 130(C).
    16. Carmelo García-Pérez & Yolanda González-González & Mercedes Prieto-Alaiz, 2017. "Identifying the Multidimensional Poor in Developed Countries Using Relative Thresholds: An Application to Spanish Data," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(1), pages 291-303, March.
    17. Lucio Esposito & Enrica Chiappero‐Martinetti, 2019. "Eliciting, Applying And Exploring Multidimensional Welfare Weights: Evidence From The Field," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 65(S1), pages 204-227, November.
    18. Suman Seth & Maria Emma Santos, 2019. "On the Interaction Between Focus and Distributional Properties in Multidimensional Poverty Measurement," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(2), pages 503-521, September.
    19. Mauricio Gallardo, 2020. "Measuring Vulnerability to Multidimensional Poverty," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(1), pages 67-103, February.
    20. Suman Seth & Melba Verra Tutor, 2021. "Evaluation of Anti‐Poverty Programs’ Impact on Joint Disadvantages: Insights From the Philippine Experience," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(4), pages 977-1004, December.

    More about this item

    Keywords

    multidimensional poverty; responsibility; fairness;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    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:ces:ceswps:_8169. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klaus Wohlrabe (email available below). General contact details of provider: https://edirc.repec.org/data/cesifde.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.