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Welfare dynamics measurement : two definitions of a vulnerability line and their empirical application

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  • Dang , Hai-Anh H.
  • Lanjouw, Peter F.

Abstract

Little research currently exists on a vulnerability line that distinguishes the poor population from the population that is not poor but that still faces significant risk of falling back into poverty. This paper attempts to fill this gap by proposing vulnerability lines that can be straightforwardly estimated with panel or cross-sectional household survey data, in rich- and poor-country settings. These vulnerability lines offer a means to broaden traditional poverty analysis and can also assist with the identification of the middle class or resilient population groups. Empirical illustrations are provided using panel data from the United States (Panel Study of Income Dynamics) and Vietnam (Vietnam Household Living Standards Survey) for the period 2004-2008 and cross-sectional data from India (National Sample Survey) for the period 2004-2009. The estimation results indicate that in Vietnam and India during this time period, the population living in poverty and the middle class have been falling and expanding, respectively, while the opposite has been occurring in the United States.

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  • Dang , Hai-Anh H. & Lanjouw, Peter F., 2014. "Welfare dynamics measurement : two definitions of a vulnerability line and their empirical application," Policy Research Working Paper Series 6944, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6944
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    Cited by:

    1. Grant J. Cameron & Hai‐Anh H. Dang & Mustafa Dinc & James Foster & Michael M. Lokshin, 2021. "Measuring the Statistical Capacity of Nations," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(4), pages 870-896, August.
    2. César Calvo, 2016. "Vulnerability to Poverty: Theory," Working Papers 2016-3, Lima School of Economics.
    3. Dang,Hai-Anh H. & Lokshin,Michael M. & Abanokova,Ksenia & Bussolo,Maurizio, 2018. "Inequality and Welfare Dynamics in the Russian Federation during 1994-2015," Policy Research Working Paper Series 8629, The World Bank.
    4. Peter Lanjouw & Hai-Anh Dang, 2018. "Welfare dynamics in India over a quarter-century: Poverty, vulnerability, and mobility, 1987–2012," WIDER Working Paper Series 175, World Institute for Development Economic Research (UNU-WIDER).
    5. Dang, Hai-Anh H. & Abanokova, Kseniya & Lokshin, Michael M., 2020. "Life Satisfaction, Subjective Wealth, and Adaptation to Vulnerability in the Russian Federation during 2002-2017," GLO Discussion Paper Series 492, Global Labor Organization (GLO).
    6. Nicolas Hérault & Stephen P. Jenkins, 2019. "How valid are synthetic panel estimates of poverty dynamics?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(1), pages 51-76, March.
    7. Peter Lanjouw & Hai-Anh Dang, 2018. "Inequality trends and dynamics in India: The bird’s-eye and the granular perspectives," WIDER Working Paper Series 189, World Institute for Development Economic Research (UNU-WIDER).
    8. Ira N. Gang & Kseniia Gatskova & John Landon-Lane & Myeong-Su Yun, 2018. "Vulnerability to Poverty: Tajikistan During and After the Global Financial Crisis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(3), pages 925-951, August.
    9. Alfani, Federica & Dabalen, Andrew & Fisker, Peter & Molini, Vasco, 2019. "Vulnerability to stunting in the West African Sahel," Food Policy, Elsevier, vol. 83(C), pages 39-47.
    10. Hai?Anh H. Dang & Peter Lanjouw, 2018. "Inequality trends and dynamics in India: The bird's-eye and the granular perspectives," WIDER Working Paper Series wp-2018-189, World Institute for Development Economic Research (UNU-WIDER).
    11. Alfani, Federica & Dabalen, Andrew & Fisker, Peter & Molini, Vasco, 2015. "Vulnerability to malnutrition in the West African Sahel," Policy Research Working Paper Series 7171, The World Bank.
    12. World Bank, . "Tunisia Poverty Assessment 2015," World Bank Other Operational Studies, The World Bank, number 24410, September.
    13. Hai-Anh H. Dang & Michael M. Lokshin & Kseniya Abanokova & Maurizio Bussolo, 2020. "Welfare Dynamics and Inequality in the Russian Federation During 1994–2015," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(4), pages 812-846, September.
    14. Hai?Anh H. Dang & Peter Lanjouw, 2018. "Welfare dynamics in India over a quarter-century: Poverty, vulnerability, and mobility, 1987-2012," WIDER Working Paper Series wp-2018-175, World Institute for Development Economic Research (UNU-WIDER).

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    Keywords

    Rural Poverty Reduction; Regional Economic Development; Population Policies; Inequality;
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