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Measuring poverty without the mortality paradox

Author

Listed:
  • LEFEBVRE, Mathieu

    (University of Liège)

  • PESTIEAU, Pierre

    () (Université catholique de Louvain, CORE, B-1348 Louvain-la-Neuve, Belgium and CREPP, Université de Liège, B-4000 Liège, Belgium)

  • PONTHIERE, Grégory

    () (Ecole Normale Supérieure, Paris and Paris School of Economics)

Abstract

Under income-differentiated mortality, poverty measures reflect not only the "true" poverty, but, also, the interferences or noise caused by the survival process at work. Such interferences lead to the Mortality Paradox: the worse the survival conditions of the poor are, the lower the measured poverty is. We examine several solutions to avoid that paradox. We identify conditions under which the extension, by means of a fictitious income, of lifetime income profiles of the prematurely dead neutralizes the noise due to differential mortality. Then, to account not only for the "missing" poor, but, also, for the "hidden" poverty (premature death), we use, as a fictitious income, the welfare-neutral income, making indifferent between life continuation and death. The robustness of poverty measures to the extension technique is illustrated with regional Belgian data.

Suggested Citation

  • LEFEBVRE, Mathieu & PESTIEAU, Pierre & PONTHIERE, Grégory, 2011. "Measuring poverty without the mortality paradox," CORE Discussion Papers 2011068, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvco:2011068
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    References listed on IDEAS

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    Cited by:

    1. LEFEBVRE, Mathieu & PESTIEAU, Pierre & PONTHIERE, Gregory, 2017. "Missing poor and income mobility," CORE Discussion Papers 2017035, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Pierre Pestieau & Grégory Ponthière, 2012. "The public economics of increasing longevity," Working Papers halshs-00676492, HAL.
    3. Marie-Louise Leroux & Pierre Pestieau & Grégory Ponthière, 2014. "Longévité différentielle et redistribution : enjeux théoriques et empiriques," Working Papers halshs-01071723, HAL.
    4. Leroux, Marie-Louise & Pestieau, Pierre & Ponthière, Grégory, 2015. "Longévité différentielle et redistribution : enjeux théoriques et empiriques," L'Actualité Economique, Société Canadienne de Science Economique, vol. 91(4), pages 465-497, Décembre.
    5. Onder,Harun & Pestieau,Pierre, 2016. "Inherited wealth and demographic aging," Policy Research Working Paper Series 7739, The World Bank.
    6. Pierre Pestieau & Gregory Ponthiere, 2012. "The Public Economics of Increasing Longevity," Hacienda Pública Española, IEF, vol. 200(1), pages 41-74, March.
    7. Mathieu Lefebvre & Pierre Pestieau & Grégory Ponthière, 2013. "FGT Poverty Measures and the Mortality Paradox: Theory and Evidence," Working Papers halshs-00845490, HAL.
    8. Mathieu Lefebvre & Pierre Pestieau & Grégory Ponthière, 2013. "FGT Poverty Measures and the Mortality Paradox: Theory and Evidence," PSE Working Papers halshs-00845490, HAL.

    More about this item

    Keywords

    premature mortality; income-differentiated mortality; poverty measurement; censored income profile;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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