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Measuring poverty without the mortality paradox

Author

Listed:
  • LEFEBVRE, Mathieu
  • PESTIEAU, Pierre
  • PONTHIERE, Gregory

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.
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Suggested Citation

  • LEFEBVRE, Mathieu & PESTIEAU, Pierre & PONTHIERE, Gregory, 2013. "Measuring poverty without the mortality paradox," LIDAM Reprints CORE 2595, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:2595
    Note: In : Social Choice and Welfare, 40(1), 285-316, 2013
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    Cited by:

    1. Mathieu Lefebvre & Pierre Pestieau & Grégory Ponthière, 2013. "FGT Poverty Measures and the Mortality Paradox: Theory and Evidence," PSE Working Papers halshs-00845490, HAL.
    2. Onder,Harun & Pestieau,Pierre, 2016. "Inherited wealth and demographic aging," Policy Research Working Paper Series 7739, The World Bank.
    3. Marie-Louise Leroux & Pierre Pestieau & Grégory Ponthière, 2015. "Longévité différentielle et redistribution : enjeux théoriques et empiriques," L'Actualité Economique, Société Canadienne de Science Economique, vol. 91(4), pages 465-497.
    4. Pierre Pestieau & Gregory Ponthiere, 2012. "The Public Economics of Increasing Longevity," Hacienda Pública Española / Review of Public Economics, IEF, vol. 200(1), pages 41-74, March.
    5. Mathieu Lefèbvre & Pierre Pestieau & Gregory Ponthiere, 2019. "Premature mortality and poverty measurement in an OLG economy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(2), pages 621-664, April.
    6. Mathieu Lefebvre & Pierre Pestieau & Gregory Ponthiere, 2023. "Counting the missing poor in pre-industrial societies," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 17(1), pages 155-183, January.
    7. Mathieu Lefebvre & Pierre Pestieau & Gregory Ponthiere, 2024. "Missing Poor in the U.S," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 22(4), pages 865-891, December.
    8. Lefebvre, Mathieu & Pestieau, Pierre & Ponthiere, Gregory, 2019. "Missing poor and income mobility," Journal of Comparative Economics, Elsevier, vol. 47(2), pages 330-366.
    9. Doux Baraka Kusinza, 2024. "Are American Women more Deprived than Men ?," DeFiPP Working Papers 2404, University of Namur, Development Finance and Public Policies.
    10. Decerf,Benoit Marie A, 2022. "Normative Indicators Combining Poverty and Mortality : A Survey," Policy Research Working Paper Series 10042, The World Bank.
    11. Marianne Tenand & Pieter Bakx & Eddy van Doorslaer, 2020. "Eligibility or use? Disentangling the sources of horizontal inequity in home care receipt in the Netherlands," Health Economics, John Wiley & Sons, Ltd., vol. 29(10), pages 1161-1179, October.
    12. Baland, Jean-Marie & Decerf, Benoit & Cassan, Guilhem, 2019. "“Too young to die†. Deprivation measures combining poverty and premature mortality," CEPR Discussion Papers 14059, C.E.P.R. Discussion Papers.

    More about this item

    JEL classification:

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

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