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|
|Date of revision:|
|Contact details of provider:|| Postal: |
Fax: +32 10474304
Web page: http://www.uclouvain.be/coreEmail:
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.:
- Amartya Sen, 1995.
"Mortality as an Indicator of Economic Success and Failure,"
innlec95/2, UNICEF Innocenti Research Centre.
- Sen, Amartya, 1998. "Mortality as an Indicator of Economic Success and Failure," Economic Journal, Royal Economic Society, vol. 108(446), pages 1-25, January.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, 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.
- Ravi Kanbur & Diganta Mukherji, 2006.
"Premature Mortality and Poverty Measurement,"
- Deaton, A., 2001.
"Health, Inequality, and Economic Development,"
200, Princeton, Woodrow Wilson School - Development Studies.
- 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..
- 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.
- 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.
- 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).
- Jusot, Florence, 2004. "Mortalité et revenu en France : construction et résultats d’une enquête cas-témoins," Economics Papers from University Paris Dauphine 123456789/451, Paris Dauphine University.
- 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.
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.