Measuring the Well-Being of the Poor Using Income and Consumption
We evaluate consumption and income measures of the material well-being of the poor. We begin with conceptual and pragmatic reasons that favor income or consumption. Then, we empirically examine the quality of standard data by studying measurement error and under-reporting, and by comparing micro-data from standard surveys to administrative micro-data and aggregates. We also compare low reports of income and consumption to other measures of hardship and well-being. The closer link between consumption and well-being and its better measurement favors the use of consumption when setting benefits and evaluating transfer programs. However, income retains its convenience for determining program eligibility.
|Date of creation:||Jun 2003|
|Date of revision:|
|Publication status:||published as Meyer, Bruce D and James X. Sullivan. "Measuring The Well-Being Of The Poor Using Income And Consumption," Journal of Human Resources, 2003, v38(Supplement), 1180-1220.|
|Contact details of provider:|| Postal: |
Web page: http://www.nber.orgEmail:
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.:
- V. J. Hotz & J. K. Scholz, . "Measuring Employment and Income for Low-Income Populations with Administrative and Survey Data," Institute for Research on Poverty Discussion Papers 1224-01, University of Wisconsin Institute for Research on Poverty.
- James M. Poterba, 1991.
"Is the Gasoline Tax Regressive?,"
in: Tax Policy and the Economy, Volume 5, pages 145-164
National Bureau of Economic Research, Inc.
- Atkinson, Anthony B, 1991. "Comparing Poverty Rates Internationally: Lessons from Recent Studies in Developed Countries," World Bank Economic Review, World Bank Group, vol. 5(1), pages 3-21, January.
- Nancy Wemmerus Kristin Porter, 1996. "An Ethnographic Analysis of Zero-Income Households in the Survey of Income and Program Participation," Mathematica Policy Research Reports fb85852141294588ad7dd0a27, Mathematica Policy Research.
- Richard Blundell & Luigi Pistaferri & Ian Preston, 2002.
"Partial insurance, information and consumption dynamics,"
IFS Working Papers
W02/16, Institute for Fiscal Studies.
- Blundell, Richard William & Pistaferri, Luigi & Preston, Ian, 2002. "Partial Insurance, Information, and Consumption Dynamics," CEPR Discussion Papers 3666, C.E.P.R. Discussion Papers.
- Christopher Bollinger & Martin H. David, 2000.
"Estimation with Response Error and Non-Response: Food Stamp Participation in the SIPP,"
Econometric Society World Congress 2000 Contributed Papers
0198, Econometric Society.
- Bollinger, Christopher R & David, Martin H, 2001. "Estimation with Response Error and Nonresponse: Food-Stamp Participation in the SIPP," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(2), pages 129-41, April.
- Bound, John & Brown, Charles & Mathiowetz, Nancy, 2001. "Measurement error in survey data," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 59, pages 3705-3843 Elsevier.
- Susan E. Mayer & Christopher Jencks, 1989. "Poverty and the Distribution of Material Hardship," Journal of Human Resources, University of Wisconsin Press, vol. 24(1), pages 88-114.
- David M. Cutler & Lawrence F. Katz, 1991. "Macroeconomic Performance and the Disadvantaged," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 22(2), pages 1-74.
- John Bound & Alan B. Krueger, 1989.
"The Extent of Measurement Error In Longitudinal Earnings Data: Do Two Wrongs Make A Right?,"
NBER Working Papers
2885, National Bureau of Economic Research, Inc.
- Bound, John & Krueger, Alan B, 1991. "The Extent of Measurement Error in Longitudinal Earnings Data: Do Two Wrongs Make a Right?," Journal of Labor Economics, University of Chicago Press, vol. 9(1), pages 1-24, January.
- Skinner, Jonathan, 1987. "A superior measure of consumption from the panel study of income dynamics," Economics Letters, Elsevier, vol. 23(2), pages 213-216.
- Bound, John, et al, 1994. "Evidence on the Validity of Cross-Sectional and Longitudinal Labor Market Data," Journal of Labor Economics, University of Chicago Press, vol. 12(3), pages 345-68, July.
- Daniel Feenberg & Elisabeth Coutts, 1993. "An introduction to the TAXSIM model," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 12(1), pages 189-194.
- Richard Blundell & Ian Preston, 1997.
"Consumption, inequality and income uncertainty,"
IFS Working Papers
W97/15, Institute for Fiscal Studies.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:9760. 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: ()
If references are entirely missing, you can add them using this form.