Measuring Poverty Without The Mortality Paradox
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.
|Date of creation:||Sep 2011|
|Date of revision:|
|Note:||View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00622325|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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.:
- Kanbur, Ravi & Mukherjee, Diganta, 2003.
"Premature Mortality And Poverty Measurement,"
127197, Cornell University, Department of Applied Economics and Management.
- 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, 2001. "Health, Inequality, and Economic Development," NBER Working Papers 8318, National Bureau of Economic Research, Inc.
- 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..
- Gary S. Becker & Tomas J. Philipson & Rodrigo R. Soares, 2005.
"The Quantity and Quality of Life and the Evolution of World Inequality,"
American Economic Review,
American Economic Association, vol. 95(1), pages 277-291, March.
- Gary S. Becker & Tomas J. Philipson & Rodrigo R. Soares, 2003. "The Quantity and Quality of Life and the Evolution of World Inequality," NBER Working Papers 9765, National Bureau of Economic Research, Inc.
- Sen, Amartya, 1998.
"Mortality as an Indicator of Economic Success and Failure,"
Royal Economic Society, vol. 108(446), pages 1-25, January.
- Amartya Sen, 1995. "Mortality as an Indicator of Economic Success and Failure," Papers innlec95/2, Innocenti Lectures.
- Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
- Deaton, Angus S & Paxson, Christina H, 1998.
"Aging and Inequality in Income and Health,"
American Economic Review,
American Economic Association, vol. 88(2), pages 248-53, May.
- Salm, Martin, 2007.
"The Effect of Pensions on Longevity: Evidence from Union Army Veterans,"
IZA Discussion Papers
2668, Institute for the Study of Labor (IZA).
- 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, 05.
- Martin Salm, 2007. "The Effect of Pensions on Longevity: Evidence from Union Army Veterans," MEA discussion paper series 07118, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
- 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.
- Broome, John, 2004.
Oxford University Press, number 9780199243761, July.
- Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
- Fleurbaey, Marc & Leroux, Marie-Louise & Ponthiere, Gregory, 2014.
"Compensating the dead,"
Journal of Mathematical Economics,
Elsevier, vol. 51(C), pages 28-41.
- Mukherjee, Diganta, 2001. "Measuring multidimensional deprivation," Mathematical Social Sciences, Elsevier, vol. 42(3), pages 233-251, November.
- 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.
When requesting a correction, please mention this item's handle: RePEc:hal:psewpa:halshs-00622325. 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: (CCSD)
If references are entirely missing, you can add them using this form.