Distributional change, reference groups and the measurement of relative deprivation
This paper attempts to explicitly integrate the idea of reference group when measuring relative deprivation. It assumes that in assessing her situation in society an individual compares herself with individuals whose environment can be considered as being similar to hers. By environment we mean the set of people with a similar set of observable characteristics such as human capital, household attributes and location. We therefore propose to measure relative deprivation by comparing the actual income of an individual with the one he could have expected on the basis of the level of these characteristics. We then aggregate these individual comparisons by computing an index of "distributional change" that compares, on a non anonymous basis, the distributions of the actual and "expected" incomes. At the difference of other approaches to relative deprivation our measure takes into account not only the difference between the actual and "expected" individual incomes but also that between the actual and "expected" individual ranks. We applied our approach to Moldova, the poorest country in Europe, using a survey which covered a period of six years (from 2000 to 2005). We then observed that our measure of deprivation, when compared to other possible measures of deprivation, had a higher correlation with the answers given by individuals in the survey we used to a question on their assessment of their housing living conditions (a higher number corresponding to a worse subjective situation).
|Date of creation:||Oct 2009|
|Date of revision:|
|Contact details of provider:|| Postal: 11, Porte des Sciences, L-4366 Esch-sur-Alzette, G.-D. Luxembourg|
Phone: 00352 / 58 58 55 - 1
Fax: 00352 / 58 58 55 - 700
Web page: http://iriss.ceps.lu/
More information through EDIRC
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.:
- Ravallion, Martin & Chen, Shaohua, 2003.
"Measuring pro-poor growth,"
Elsevier, vol. 78(1), pages 93-99, January.
- BOSSERT, Walter & D’AMBROSIO, Conchita, 2004.
"Reference Groups and Individual Deprivation,"
Cahiers de recherche
13-2004, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Clark, Andrew E. & Oswald, Andrew J., 1996.
"Satisfaction and comparison income,"
Journal of Public Economics,
Elsevier, vol. 61(3), pages 359-381, September.
- Clark, Andrew E. & Oswald, Andrew J., 1994. "Satisfaction and comparison income," CEPREMAP Working Papers (Couverture Orange) 9408, CEPREMAP.
- Clark, Andrew E & Oswald, Andrew J, 1993. "Satisfaction and Comparison Income," Economics Discussion Papers 10018, University of Essex, Department of Economics.
- Z. M. Berrebi & Jacques Silber, 1985. "Income Inequality Indices and Deprivation: A Generalization," The Quarterly Journal of Economics, Oxford University Press, vol. 100(3), pages 807-810.
- Fields, Gary S. & Ok, Efe A., 1996. "The Measurement of Income Mobility: An Introduction to the Literature," Working Papers 96-05, C.V. Starr Center for Applied Economics, New York University.
- Mercedes Sastre & Alain Trannoy, 2002.
"Shapley inequality decomposition by factor components: Some methodological issues,"
Journal of Economics,
Springer, vol. 77(1), pages 51-89, December.
- Mercedes Sastre & Alain Trannoy, 2002. "Shapley inequality decomposition by factor components: Some methodological issues," Journal of Economics, Springer, vol. 9(1), pages 51-89, December.
- Silber, Jacques, 1989. "Factor Components, Population Subgroups and the Computation of the Gini Index of Inequality," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 107-15, February.
- John D. Hey & Peter J. Lambert, 1980. "Relative Deprivation and the Gini Coefficient: Comment," The Quarterly Journal of Economics, Oxford University Press, vol. 95(3), pages 567-573.
- Verme, Paolo, 2008. "Social assistance and poverty reduction in Moldova, 2001-2004 an impact evaluation," Policy Research Working Paper Series 4658, The World Bank.
- World Bank, 2004. "Recession, Recovery and Poverty in Moldova," World Bank Other Operational Studies 14424, The World Bank.
- Cowell, Frank A., 1980. "Generalized entropy and the measurement of distributional change," European Economic Review, Elsevier, vol. 13(1), pages 147-159, January.
When requesting a correction, please mention this item's handle: RePEc:irs:iriswp:2009-13. 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: (Philippe Van Kerm)
If references are entirely missing, you can add them using this form.