IDEAS home Printed from https://ideas.repec.org/p/cor/louvco/2017035.html
   My bibliography  Save this paper

Missing poor and income mobility

Author

Listed:
  • LEFEBVRE, Mathieu

    (Université de Strasbourg)

  • PESTIEAU, Pierre

    () (Université de Liège and CORE)

  • PONTHIERE, Gregory

    (Université Paris East and Paris School of Economics)

Abstract

Higher mortality among the poor leads to selection biases in poverty measures. Whereas existing attempts to deal with the "missing poor" problem assume the absence of income mobility and assign to the prematurely dead a fictitious income equal to the last income enjoyed, this paper relaxes that assumption in order to study the impact of income mobility on the size of the missing poor bias. We use data on poverty above age 60 in 12 countries from the EU-SILC database, and we compare standard poverty rates with the hypothetical poverty rates that would have prevailed if (i) all individuals, whatever their income, had enjoyed the same survival conditions (the ones of the highest income class), and if (ii) all individuals within the same income class had been subject to the same income mobility process. It is shown that taking income mobility into account has adverse effects on corrected poverty measures across countries, and that it affects international comparisons in terms of old-age poverty.

Suggested Citation

  • 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).
  • Handle: RePEc:cor:louvco:2017035
    as

    Download full text from publisher

    File URL: https://alfresco.uclouvain.be/share/proxy/alfresco/slingshot/node/content/workspace/SpacesStore/89f0b353-7ea9-46e6-b1c7-5ae93c93fdf5/coredp2017_35web.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. Angus Deaton, 2003. "Health, Inequality, and Economic Development," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 113-158, March.
    3. repec:dau:papers:123456789/451 is not listed on IDEAS
    4. Christian Schluter & Dirk Van de gaer, 2011. "Upward Structural Mobility, Exchange Mobility, And Subgroup Consistent Mobility Measurement: U.S.–German Mobility Rankings Revisited," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(1), pages 1-22, March.
    5. Ravi Kanbur & Diganta Mukherjee, 2007. "Premature Mortality And Poverty Measurement," Bulletin of Economic Research, Wiley Blackwell, vol. 59(4), pages 339-359, October.
    6. Hoy, Michael & Zheng, Buhong, 2011. "Measuring lifetime poverty," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2544-2562.
    7. 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.
    8. Mathieu Lefebvre & Pierre Pestieau & Grégory Ponthière, 2017. "FGT Old-Age Poverty Measures and the Mortality Paradox: Theory and Evidence," Post-Print halshs-01630662, HAL.
    9. Mathieu Lefebvre & Pierre Pestieau & Grégory Ponthière, 2011. "Measuring Poverty Without The Mortality Paradox," PSE Working Papers halshs-00622325, HAL.
    10. 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.
    11. Sen, Amartya, 1998. "Mortality as an Indicator of Economic Success and Failure," Economic Journal, Royal Economic Society, vol. 108(446), pages 1-25, January.
    12. Fields, Gary S. & Ok, Efe A., 1996. "The Meaning and Measurement of Income Mobility," Journal of Economic Theory, Elsevier, vol. 71(2), pages 349-377, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    poverty; measurement; mortality; missing poor; income mobility;

    JEL classification:

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

    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:cor:louvco:2017035. 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). General contact details of provider: http://edirc.repec.org/data/coreebe.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.