IDEAS home Printed from https://ideas.repec.org/p/cor/louvrp/3015.html
   My bibliography  Save this paper

Missing poor and income mobility

Author

Listed:
  • Mathieu Lefèbvre
  • Pierre Pestieau
  • Gregory Ponthiere

Abstract

Higher mortality among the poor prevents standard poverty measures from quantifying the actual extent of old-age poverty. 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, and if (ii) all individuals within the same income class had been subject to the same income mobility process. Taking income mobility into account has unequal effects on corrected poverty measures across countries, and, hence, affects international comparisons in terms of old-age poverty.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Mathieu Lefèbvre & Pierre Pestieau & Gregory Ponthiere, 2019. "Missing poor and income mobility," LIDAM Reprints CORE 3015, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  • Handle: RePEc:cor:louvrp:3015
    Note: In : Journal of Comparative Economics, 47, 330-366, 2019
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mikael Lindahl, 2005. "Estimating the Effect of Income on Health and Mortality Using Lottery Prizes as an Exogenous Source of Variation in Income," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
    2. 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.
    3. Angus Deaton, 2003. "Health, Inequality, and Economic Development," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 113-158, March.
    4. Van Kerm, Philippe & Pi Alperin, Maria Noel, 2013. "Inequality, growth and mobility: The intertemporal distribution of income in European countries 2003–2007," Economic Modelling, Elsevier, vol. 35(C), pages 931-939.
    5. Van Kerm, Philippe, 2009. "Income mobility profiles," Economics Letters, Elsevier, vol. 102(2), pages 93-95, February.
    6. repec:dau:papers:123456789/451 is not listed on IDEAS
    7. 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.
    8. 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.
    9. Ravi Kanbur & Diganta Mukherjee, 2007. "Premature Mortality And Poverty Measurement," Bulletin of Economic Research, Wiley Blackwell, vol. 59(4), pages 339-359, October.
    10. 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.
    11. Denisa Maria Sologon & Cathal O’Donoghue, 2011. "Shaping Earnings Mobility: Policy and Institutional Factors," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(2), pages 175-202, December.
    12. repec:dau:papers:123456789/10510 is not listed on IDEAS
    13. Hans van Kippersluis, & Owen O’Donnell & Eddy van Doorslaer, 2011. "Long-Run Returns to Education: Does Schooling Lead to an Extended Old Age?," Journal of Human Resources, University of Wisconsin Press, vol. 46(4), pages 695-721.
    14. Deaton, Angus S & Paxson, Christina H, 1998. "Aging and Inequality in Income and Health," American Economic Review, American Economic Association, vol. 88(2), pages 248-253, May.
    15. Hoy, Michael & Zheng, Buhong, 2011. "Measuring lifetime poverty," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2544-2562.
    16. Herman Oyen & Nathalie Bossuyt & Patrick Deboosere & Sylvie Gadeyne & Emmanuel Abatih & Stefaan Demarest, 2005. "Differential inequity in health expectancy by region in Belgium," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 50(5), pages 301-310, October.
    17. Philippe Van Kerm, 2004. "What Lies Behind Income Mobility? Reranking and Distributional Change in Belgium, Western Germany and the USA," Economica, London School of Economics and Political Science, vol. 71(281), pages 223-239, May.
    18. Mathieu Lefebvre & Pierre Pestieau & Grégory Ponthière, 2018. "FGT Old-Age Poverty Measures and the Mortality Paradox: Theory and Evidence," Post-Print halshs-01630662, HAL.
    19. Wen‐Hao Chen, 2009. "Cross‐National Differences In Income Mobility: Evidence From Canada, The United States, Great Britain And Germany," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(1), pages 75-100, March.
    20. Martin Salm, 2011. "The Effect of Pensions on Longevity: Evidence from Union Army Veterans," Economic Journal, Royal Economic Society, vol. 121(552), pages 595-619, May.
    21. 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.
    22. Sen, Amartya, 1998. "Mortality as an Indicator of Economic Success and Failure," Economic Journal, Royal Economic Society, vol. 108(446), pages 1-25, January.
    23. Adriana Lleras-Muney, 2005. "The Relationship Between Education and Adult Mortality in the United States," Review of Economic Studies, Oxford University Press, vol. 72(1), pages 189-221.
    24. 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.
    25. Mathieu Lefèbvre & Pierre Pestieau & Gregory Ponthiere, 2018. "FGT Old†Age Poverty Measures and the Mortality Paradox: Theory and Evidence," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(2), pages 428-458, June.
    26. Fields, Gary S & Ok, Efe A, 1999. "Measuring Movement of Incomes," Economica, London School of Economics and Political Science, vol. 66(264), pages 455-471, November.
    27. 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.
    28. Stephen E. Snyder & William N. Evans, 2006. "The Effect of Income on Mortality: Evidence from the Social Security Notch," The Review of Economics and Statistics, MIT Press, vol. 88(3), pages 482-495, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Grégory Ponthière, 2020. "Pensions and Social Justice: From Standard Retirement to Reverse Retirement," Working Papers halshs-02882357, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Mathieu Lefèbvre & Pierre Pestieau & Gregory Ponthiere, 2018. "FGT Old†Age Poverty Measures and the Mortality Paradox: Theory and Evidence," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(2), pages 428-458, June.
    3. Mathieu Lefebvre & Pierre Pestieau & Grégory Ponthière, 2013. "FGT Poverty Measures and the Mortality Paradox: Theory and Evidence," PSE Working Papers halshs-00845490, HAL.
    4. 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.
    5. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    6. Cristia, Julian P., 2009. "Rising mortality and life expectancy differentials by lifetime earnings in the United States," Journal of Health Economics, Elsevier, vol. 28(5), pages 984-995, September.
    7. 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.
    8. Aristei, David & Perugini, Cristiano, 2015. "The drivers of income mobility in Europe," Economic Systems, Elsevier, vol. 39(2), pages 197-224.
    9. Oscar Erixson, 2017. "Health responses to a wealth shock: evidence from a Swedish tax reform," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(4), pages 1281-1336, October.
    10. 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.
    11. Adriaan Kalwij & Rob Alessie & Marike Knoef, 2013. "The Association Between Individual Income and Remaining Life Expectancy at the Age of 65 in the Netherlands," Demography, Springer;Population Association of America (PAA), vol. 50(1), pages 181-206, February.
    12. Evans, William N. & Moore, Timothy J., 2011. "The short-term mortality consequences of income receipt," Journal of Public Economics, Elsevier, vol. 95(11), pages 1410-1424.
    13. Elena Bárcena & Olga Cantó, 2018. "A simple subgroup decomposable measure of downward (and upward) income mobility," Working Papers 472, ECINEQ, Society for the Study of Economic Inequality.
    14. Pierre Pestieau & Gregory Ponthiere, 2014. "Policy Implications of Changing Longevity," CESifo Economic Studies, CESifo, vol. 60(1), pages 178-212.
    15. Thomas Demuynck & Dirk Van de gaer, 2012. "Inequality Adjusted Income Growth," Economica, London School of Economics and Political Science, vol. 79(316), pages 747-765, October.
    16. Owen O'Donnell & Eddy Van Doorslaer & Tom Van Ourti, 2013. "Health and Inequality," Tinbergen Institute Discussion Papers 13-170/V, Tinbergen Institute.
    17. Alexander Ahammer & G. Thomas Horvath & Rudolf Winter-Ebmer, 2017. "The effect of income on mortality—new evidence for the absence of a causal link," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 180(3), pages 793-816, June.
    18. Cheng, Lingguo & Liu, Hong & Zhang, Ye & Zhao, Zhong, 2018. "The health implications of social pensions: Evidence from China's new rural pension scheme," Journal of Comparative Economics, Elsevier, vol. 46(1), pages 53-77.
    19. Van Kerm, Philippe & Pi Alperin, Maria Noel, 2013. "Inequality, growth and mobility: The intertemporal distribution of income in European countries 2003–2007," Economic Modelling, Elsevier, vol. 35(C), pages 931-939.
    20. Ayala, Luis & Sastre, Mercedes, 2002. "What determines income mobility differences across the European Union?," ISER Working Paper Series 2002-27, Institute for Social and Economic Research.

    More about this item

    JEL classification:

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

    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:louvrp:3015. 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.