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By ignoring intra-household inequality, do we underestimate the extent of poverty?

Author

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  • Philippe de Vreyer

    (LEDa - Laboratoire d'Economie de Dauphine - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres, DIAL - Développement, institutions et analyses de long terme)

  • Sylvie Lambert

    (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

This paper uses a novel survey to re-examine inequality and poverty levels in Senegal. In order to account for intra-household inequalities, the paper uses consumption data collected at a relatively disaggregated level within households. This data reveal that first, mean consumption is higher than measured by standard consumption surveys; and second, that consumption inequality in this country is also much higher that what is commonly thought, with a Gini index reaching 48. These findings affect global poverty estimates in opposite directions and in this context, nearly compensate for each other. Intra-household consumption inequalities are shown to account for nearly 14% of total inequality in Senegal. These results are robust to the existence of plausible measurement errors. As a result of this intra-household inequality, "invisible poor" exist with 12.6% of the poor individuals living in non-poor households.

Suggested Citation

  • Philippe de Vreyer & Sylvie Lambert, 2018. "By ignoring intra-household inequality, do we underestimate the extent of poverty?," PSE Working Papers halshs-01724194, HAL.
  • Handle: RePEc:hal:psewpa:halshs-01724194
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01724194
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    Cited by:

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    2. De Vreyer, Philippe & Nilsson, Björn, 2019. "When solidarity fails: Heterogeneous effects on children from adult deaths in Senegalese households," World Development, Elsevier, vol. 114(C), pages 73-94.
    3. Berman, Nicolas & Rotunno, Lorenzo & Ziparo, Roberta, 2020. "Sweet child of mine: Income, health and inequality," CEPR Discussion Papers 14444, C.E.P.R. Discussion Papers.
    4. Olivier Bargain & Guy Lacroix & Luca Tiberti, 2021. "Intrahousehold Resource Allocation and Individual Poverty: Assessing Collective Model Predictions against Direct Evidence on Sharing," Bordeaux Economics Working Papers 2021-11, Bordeaux School of Economics (BSE).
    5. Alba Lanau & Viliami Fifita, 2020. "Do Households Prioritise Children? Intra-Household Deprivation a Case Study of the South Pacific," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 13(6), pages 1953-1973, December.
    6. Olivier Bargain, 2022. "Income Sources, Intra-Household Allocation And Individual Poverty," Commitment to Equity (CEQ) Working Paper Series 121, Tulane University, Department of Economics.
    7. Nicolas Berman & Lorenzo Rotunno & Roberta Ziparo, 2020. "Sweet child of mine: Parental income, child health and inequality," AMSE Working Papers 2005, Aix-Marseille School of Economics, France, revised Dec 2022.
    8. Chancel, Lucas & Cogneau, Denis & Gethin, Amory & Myczkowski, Alix & Robilliard, Anne-Sophie, 2023. "Income inequality in Africa, 1990–2019: Measurement, patterns, determinants," World Development, Elsevier, vol. 163(C).
    9. Brown, Caitlin & Calvi, Rossella & Penglase, Jacob, 2021. "Sharing the pie: An analysis of undernutrition and individual consumption in Bangladesh," Journal of Public Economics, Elsevier, vol. 200(C).
    10. Hasanbasri,Ardina Roosiany & Kilic,Talip & Koolwal,Gayatri B. & Moylan,Heather G., 2022. "Individual Wealth Inequality : Measurement and Evidence from Low- and Middle-Income Countries," Policy Research Working Paper Series 9987, The World Bank.
    11. Malghan, Deepak & Swaminathan, Hema, 2021. "Global trends in intra-household gender inequality," Journal of Economic Behavior & Organization, Elsevier, vol. 189(C), pages 515-546.
    12. Djuikom, Marie Albertine & van de Walle, Dominique, 2022. "Marital status and women’s nutrition in Africa," World Development, Elsevier, vol. 158(C).
    13. Mario Biggeri & Jose Antonio Cuesta, 2021. "An Integrated Framework for Child Poverty and Well-Being Measurement: Reconciling Theories," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 14(2), pages 821-846, April.
    14. Martin Ravallion, 2020. "On the Origins of the Idea of Ending Poverty," NBER Working Papers 27808, National Bureau of Economic Research, Inc.
    15. Rocco Zizzamia & Simone Schotte & Murray Leibbrandt, 2019. "Snakes and ladders and loaded dice: Poverty dynamics and inequality in South Africa, 2008-2017," WIDER Working Paper Series wp-2019-25, World Institute for Development Economic Research (UNU-WIDER).
    16. Almås, Ingvild & Ringdal, Charlotte & Hoem Sjursen, Ingrid, 2021. "Understanding inequality within households," GLO Discussion Paper Series 961, Global Labor Organization (GLO).
    17. Hanrui Jia & Peng Zhan, 2021. "Intra‐family Income Redistribution and Its Dynamic Changes among the Elderly in China: 2002–2018," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(5), pages 84-104, September.
    18. Miriam Rehm & Alyssa Schneebaum & Barbara Schuster, 2022. "Intra-Couple Wealth Inequality: What’s Socio-Demographics Got to Do with it?," European Journal of Population, Springer;European Association for Population Studies, vol. 38(4), pages 681-720, October.

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    More about this item

    Keywords

    Inequality; Poverty; Household surveys; Intra-household allocation; Senegal;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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