FGT poverty measures and the mortality paradox: Theory and Evidence
Income-differentiated mortality, by reducing the share of poor persons in the population, leads to what can be called the "Mortality Paradox": the worse the survival conditions of the poor are, the lower the measured poverty is. We show that the extent to which FGT measures (Foster Greer Thorbecke 1984) underestimate old-age poverty under income-differentiated mortality depends on whether the prematurely dead would have, in case of survival, suffered from a more severe poverty than the average surviving population. Taking adjusted FGT measures with ex- tended lifetime income profiles as a benchmark, we identify conditions under which the selection bias induced by income-differentiated mortality is higher for distribution-sensitive measures than for headcount measures. Finally, we show, on the basis of data on poverty in 11 European economies, that the size of the selection bias varies across different sub-classes of FGT measures and across countries.
|Date of creation:||11 Sep 2013|
|Contact details of provider:|| Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)|
Fax: +32 10474304
Web page: http://www.uclouvain.be/core
More information through EDIRC
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.:
- Angus Deaton, 2016.
"Health, Inequality and Economic Development,"
- Angus Deaton, 2002. "Health, inequality, and economic development," Working Papers 209, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
- Angus Deaton, 2001. "Health, Inequality, and Economic Development," NBER Working Papers 8318, National Bureau of Economic Research, Inc.
- Angus Deaton, 2002. "Health, inequality, and economic development," Working Papers 270, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
- Deaton, A., 2001. "Health, Inequality, and Economic Development," Papers 200, Princeton, Woodrow Wilson School - Development Studies.
- Mathieu Lefebvre & Pierre Pestieau & Gregory Ponthiere, 2013.
"Measuring poverty without the Mortality Paradox,"
Social Choice and Welfare,
Springer;The Society for Social Choice and Welfare, vol. 40(1), pages 285-316, January.
- Mathieu Lefebvre & Pierre Pestieau & Grégory Ponthière, 2011. "Measuring Poverty Without The Mortality Paradox," PSE Working Papers halshs-00622325, HAL.
- Mathieu Lefebvre & Pierre Pestieau & Grégory Ponthière, 2013. "Measuring poverty without the Mortality Paradox," PSE - Labex "OSE-Ouvrir la Science Economique" hal-00813214, HAL.
- 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).
- Backlund, Eric & Sorlie, Paul D. & Johnson, Norman J., 1999. "A comparison of the relationships of education and income with mortality: the national longitudinal mortality study," Social Science & Medicine, Elsevier, vol. 49(10), pages 1373-1384, November.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
- John S. Greenlees & James E. Duggan & Robert Gillingham, 2007.
"Mortality and Lifetime Income; Evidence from U.S. Social Security Records,"
IMF Working Papers
07/15, International Monetary Fund.
- James E Duggan & Robert Gillingham & John S Greenlees, 2008. "Mortality and Lifetime Income: Evidence from U.S. Social Security Records," IMF Staff Papers, Palgrave Macmillan, vol. 55(4), pages 566-594, December.
- Kanbur, Ravi & Mukherjee, Diganta, 2003.
"Premature Mortality And Poverty Measurement,"
127197, Cornell University, Department of Applied Economics and Management.
- Sen, Amartya, 1998.
"Mortality as an Indicator of Economic Success and Failure,"
Royal Economic Society, vol. 108(446), pages 1-25, January.
- Amartya Sen, 1995. "Mortality as an Indicator of Economic Success and Failure," Papers innlec95/2, Innocenti Lectures.
- Harriet Orcutt Duleep, 1986. "Measuring the Effect of Income on Adult Mortality Using Longitudinal Administrative Record Data," Journal of Human Resources, University of Wisconsin Press, vol. 21(2), pages 238-251.
- repec:dau:papers:123456789/451 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:cor:louvco:2013042. 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: (Alain GILLIS)
If references are entirely missing, you can add them using this form.