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Monitoring the evolution of income poverty and real incomes over time

Author

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  • Atkinson, A. B.
  • Guio, Anne-Catherine
  • Marlier, Eric

Abstract

This paper brings together two approaches to the monitoring of household living standards: the macro-economic (national accounts) analysis of aggregates and the social indicators based on household microdata (European Union Statistics on Income and Living Conditions [EU-SILC]). Both are essential. The national accounts are necessary to provide an overall perspective; the distributional data in EU-SILC are necessary to measure income poverty. The progress, or lack of progress, in reducing income poverty has to be seen in relation to what is happening to the level of real incomes. We begin with the EU-SILC-based headline at-risk-of-poverty indicator, and then consider its relation to the level of household real income as presented in the national accounts. Moving step by step, we seek to identify the reasons for differences between EU-SILC and national accounts measures of real incomes. From this, we make a number of recommendations about possible improvements in the underlying data and in the construction of the social indicators. The substantive results help illuminate the differing experience of the pre-crisis period 2005 to 2008 and the subsequent three year period 2008 to 2011 (income reference years).

Suggested Citation

  • Atkinson, A. B. & Guio, Anne-Catherine & Marlier, Eric, 2015. "Monitoring the evolution of income poverty and real incomes over time," LSE Research Online Documents on Economics 103979, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:103979
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    File URL: http://eprints.lse.ac.uk/103979/
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    References listed on IDEAS

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    1. Angus Deaton & Bettina Aten, 2017. "Trying to Understand the PPPs in ICP 2011: Why Are the Results So Different?," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(1), pages 243-264, January.
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    Cited by:

    1. Massimo Baldini, 2017. "Questioni valutative in relazione alla definizione di 'povertà' (The definition and measurement of poverty: some methodological issues)," Department of Economics 0117, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    2. Massimo Baldini, 2017. "Questioni valutative in relazione alla definizione di 'povertà' (The definition and measurement of poverty: some methodological issues)," Center for the Analysis of Public Policies (CAPP) 0158, Universita di Modena e Reggio Emilia, Dipartimento di Economia "Marco Biagi".
    3. Brian Nolan & Max Roser & Stefan Thewissen, 2016. "Models, Regimes, And The Evolution Of Middle Incomes In OECD Countries," LIS Working papers 660, LIS Cross-National Data Center in Luxembourg.

    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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