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Intensity of Time and Income Interdependent Multidimensional Poverty: Well-Being and Minimum 2DGAP – German Evidence

Author

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  • Joachim Merz
  • Tim Rathjen

    () (LEUPHANA University Lüneburg,Department of Economic, Behaviour and Law Sciences, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)))

Abstract

Extending the traditional income poverty concept by multidimensional poverty has been of growing interest within the last years. This paper contributes with an analysis of interdependent multidimensional (IMD) poverty intensity of time and income, which in particular restricts social participation. The interdependency of the multiple poverty dimensions under a strong (union approach) and weak focus axiom (compensation approach) are regarded in particular when measuring the intensity of multidimensional poverty. In addition to various poverty gap measures including the multidimensional well-being gap, for the first time we propose a minimum multidimensional poverty gap (2DGAP). To respect Sen’s capability approach with its social participation aspects we define the time dimension as genuine personal leisure time. Based on a CES well-being function and a multidimensional poverty line evaluated by the German population (estimated with the German Socio-Economic Panel) the individual poverty intensity of the active population is analysed for various regimes of multiple poverty. For this purpose the German Time Use Surveys 1991/92 and 2001/02 and its time use diary data are used. Analysing the active population this paper contributes too to the poverty situation of the working poor. All the empirical results, including the microeconometric Heckman type estimation of the IMD poverty intensity (2DGAP) and the IMD poverty risk, indicate the overall importance of the time dimension with its social participation aspect incorporated within an interdependent multidimensional time and income poverty approach. An important dimension would be neglected in the poverty analysis and in targeted poverty policies if time additional to income would is not respected.

Suggested Citation

  • Joachim Merz & Tim Rathjen, 2011. "Intensity of Time and Income Interdependent Multidimensional Poverty: Well-Being and Minimum 2DGAP – German Evidence," FFB-Discussionpaper 92, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
  • Handle: RePEc:leu:wpaper:92
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    Cited by:

    1. Merz, Joachim & Loest, Olaf & Simon, André, 1999. "Existenzgründung Wie werde ich selbständig, wie werde ich Freiberufler? Ein Leitfaden," MPRA Paper 6361, University Library of Munich, Germany.
    2. Joachim Merz & Bettina Scherg, 2013. "Polarization of time and income – A multidimensional approach with well-being gap and minimum 2DGAP: German evidence," Working Papers 297, ECINEQ, Society for the Study of Economic Inequality.
    3. Gaston Yalonetzky, 2014. "Conditions for the most robust multidimensional poverty comparisons using counting measures and ordinal variables," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(4), pages 773-807, December.
    4. Tim Rathjen, 2011. "Do Time Poor Individuals Pay More?," FFB-Discussionpaper 91, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    5. Joachim Merz & Tim Rathjen, 2014. "Multidimensional time and income poverty: well-being gap and minimum 2DGAP poverty intensity – German evidence," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, pages 555-580.
    6. Merz, Joachim & Quiel, Thorsten & Venkatarama, Kshama, 1998. "Wer bezahlt die Steuern? Steuerbelastung und Einkommenssituation von Freien und anderen Berufen," MPRA Paper 9173, University Library of Munich, Germany.

    More about this item

    Keywords

    Intensity of time and income poverty; interdependent multidimensional time and income poverty; union and compensation approach; minimum multidimensional poverty gap (2DGAP); extended economic well-being; satisfaction/happiness; working poor; CES wellbeing function; German Socio-Economic Panel; German Time Use Surveys 1991/92 and 2001/02;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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