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

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    More about this item

    Keywords

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

    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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