Empirical Issues in Lifetime Poverty Measurement
This paper demonstrates the implications of adopting an approach to measuring poverty that takes into account the lifetime experience of individuals rather than simply taking a static or cross-sectional perspective. Our approach follows the theoretical innovations in Hoy and Zheng (2008) which address various aspects of the specific pattern of any poverty spells experienced by an individual as well as a possible retrospective consideration that an individual might have concerning his life experience as a whole. For an individual, our perspective of lifetime poverty is influenced by both the snapshot poverty of each period and the poverty level of the permanent lifetime consumption; it is also influenced by how poverty spells are distributed over the lifetime. Using PSID data for the US, we demonstrate empirically the power of alternative axioms concerning how lifetime poverty should be measured when making pairwise comparisons of individual lifetime profiles of consumption (income) experiences. We also demonstrate the importance of taking a lifetime view of poverty in comparing poverty between groups by use of the classic FGT ‘snapshot’ poverty index in conjunction with period weighting functions that explicitly reflect concerns about the pattern of poverty spells over individuals’ lifetimes.
|Date of creation:||2010|
|Contact details of provider:|| Postal: Katajanokanlaituri 6B, 00160 Helsinki|
Web page: http://www.wider.unu.edu/
More information through EDIRC
References listed on IDEAS
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.:
- Grimm, Michael & Gräb, Johannes, 2007.
"Robust Multiperiod Poverty Comparisons,"
Proceedings of the German Development Economics Conference, Göttingen 2007
8, Verein für Socialpolitik, Research Committee Development Economics.
- Johannes Gräb & Michael Grimm, 2007. "Robust Multiperiod Poverty Comparisons," Discussion Papers of DIW Berlin 725, DIW Berlin, German Institute for Economic Research.
- Johannes Gräb & Michael Grimm, 2007. "Robust Multiperiod Poverty Comparisons," Working Papers DT/2007/12, DIAL (Développement, Institutions et Mondialisation).
- Johannes Gräb & Michael Grimm, 2007. "Robust Multiperiod Poverty Comparisons," Ibero America Institute for Econ. Research (IAI) Discussion Papers 160, Ibero-America Institute for Economic Research.
- Joan R. Rodgers & John L. Rodgers, 1993. "Chronic Poverty in the United States," Journal of Human Resources, University of Wisconsin Press, vol. 28(1), pages 25-54.
- Hoy, Michael & Zheng, Buhong, 2011. "Measuring lifetime poverty," Journal of Economic Theory, Elsevier, vol. 146(6), pages 2544-2562.
- Michael Hoy & Buhong Zheng, 2008. "Measuring Lifetime Poverty," Working Papers 0814, University of Guelph, Department of Economics and Finance.
- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
- Zheng, Buhong, 1997. " Aggregate Poverty Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 11(2), pages 123-162, June.
- Zheng, Buhong, 2000. " Poverty Orderings," Journal of Economic Surveys, Wiley Blackwell, vol. 14(4), pages 427-466, September.
- Arranz, José Maria & Cantó, Olga, 2010. "Measuring the Effect of Spell Recurrence on Poverty Dynamics," WIDER Working Paper Series 072, World Institute for Development Economic Research (UNU-WIDER).
- Jyotsna Jalan & Martin Ravallion, 2000. "Is transient poverty different? Evidence for rural China," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 82-99.
- David Clark & David Hulme, 2010. "Poverty, time and vagueness: integrating the core poverty and chronic poverty frameworks," Cambridge Journal of Economics, Oxford University Press, vol. 34(2), pages 347-366, March. Full references (including those not matched with items on IDEAS)