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Individual poverty measurement using a fuzzy intrahousehold approach

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  • Gianni Betti

    ()

  • Lucia Mangiavacchi

    ()

  • Luca Piccoli

    ()

Abstract

This work studies the impact of accounting for intrahousehold inequality in the distribution of resources for the measurement of poverty. For the estimation of intrahousehold distribution of resources the study relies on collective Engel curves. For the poverty analysis, we propose a fuzzy intrahousehold index which is less sensitive to small changes around the poverty line compared to standard FGT indices and produce more reliable results. This provides an interesting approach to address individual poverty in contexts where intrahousehold inequality is at work and there is a concentration of individuals near the poverty line. The proposed approach is applied to the analysis of individual poverty in Albania, finding an expected general increase in poverty rates. Besides, a previously unperceived issue –female poverty– emerges as a worryingly aspect to be accounted for in anti-poverty policies.

Suggested Citation

  • Gianni Betti & Lucia Mangiavacchi & Luca Piccoli, 2017. "Individual poverty measurement using a fuzzy intrahousehold approach," Department of Economics University of Siena 747, Department of Economics, University of Siena.
  • Handle: RePEc:usi:wpaper:747
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    References listed on IDEAS

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    1. Lucia Mangiavacchi & Luca Piccoli, 2017. "Gender inequalities among adults and children in collective households," WIDER Working Paper Series 109, World Institute for Development Economic Research (UNU-WIDER).
    2. Browning, Martin & Francois Bourguignon & Pierre-Andre Chiappori & Valerie Lechene, 1994. "Income and Outcomes: A Structural Model of Intrahousehold Allocation," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1067-1096, December.
    3. Guy Lacroix & Natalia Radtchenko, 2011. "The changing intra-household resource allocation in Russia," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 85-106, January.
    4. Lucia MANGIAVACCHI & Federico PERALI & Luca Piccoli, 2018. "Intrahousehold Distribution in Migrant-Sending Families," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 84(1), pages 107-148, March.
    5. Bargain, Olivier & Donni, Olivier & Kwenda, Prudence, 2014. "Intrahousehold distribution and poverty: Evidence from Côte d'Ivoire," Journal of Development Economics, Elsevier, vol. 107(C), pages 262-276.
    6. Laurens Cherchye & Bram De Rock & Frederic Vermeulen, 2009. "Opening the Black Box of Intrahousehold Decision Making: Theory and Nonparametric Empirical Tests of General Collective Consumption Models," Journal of Political Economy, University of Chicago Press, vol. 117(6), pages 1074-1104, December.
    7. Geoffrey R. Dunbar & Arthur Lewbel & Krishna Pendakur, 2013. "Children's Resources in Collective Households: Identification, Estimation, and an Application to Child Poverty in Malawi," American Economic Review, American Economic Association, vol. 103(1), pages 438-471, February.
    8. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
    9. World Bank & World Bank, 2003. "Albania : Poverty Assessment," World Bank Other Operational Studies 14605, The World Bank.
    10. Luca Piccoli, 2017. "Female poverty and intrahousehold inequality in transition economies," IZA World of Labor, Institute for the Study of Labor (IZA), pages 353-353, March.
    11. Chiappori, Pierre-Andre, 1988. "Rational Household Labor Supply," Econometrica, Econometric Society, vol. 56(1), pages 63-90, January.
    12. Ekaterina Kalugina & Catherine Sofer & Natalia Radtchenko, 2009. "Intra-household inequality in transitional Russia," Review of Economics of the Household, Springer, vol. 7(4), pages 447-471, December.
    13. Gianni Betti & Ruzhdie Bici & Laura Neri & Thomas Pave Sohnesen & Ledia Thomo, 2017. "Local Poverty and Inequality in Albania," Department of Economics University of Siena 745, Department of Economics, University of Siena.
    14. Gianni Betti & Francesca Gagliardi & Achille Lemmi & Vijay Verma, 2011. "Subnational indicators of poverty and deprivation in Europe: methodology and applications," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 5(1), pages 129-147.
    15. Martina Menon & Federico Perali & Luca Piccoli, 2012. "The Passive Drinking Effect: A Collective Demand Application," Working Papers 05/2012, University of Verona, Department of Economics.
    16. Chiappori, Pierre-Andre, 1992. "Collective Labor Supply and Welfare," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 437-467, June.
    17. Arthur Lewbel, 1989. "Identification and Estimation of Equivalence Scales under Weak Separability," Review of Economic Studies, Oxford University Press, vol. 56(2), pages 311-316.
    18. repec:hal:journl:hal-00687277 is not listed on IDEAS
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    Cited by:

    1. Lucia Mangiavacchi & Luca Piccoli, 2017. "Gender inequalities among adults and children in collective households," WIDER Working Paper Series 109, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Female poverty; Gender inequality; Fuzzy set poverty; intrahousehold distribution; Collective model; Albania.;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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