IDEAS home Printed from https://ideas.repec.org/p/zbw/glodps/1822.html

The Invisible Continent. Counting the Missing Poor in Developing Countries

Author

Listed:
  • Lefebvre, Mathieu
  • Onder, Harun
  • Pestieau, Pierre
  • Ponthière, Gregory
  • Suzuki, Emi

Abstract

Because the poor face higher mortality, they are under-represented in the samples used to measure poverty. This paper quantifies this missing poor bias across 92 developing and least developed countries by comparing observed headcount poverty rates with counterfactual rates that would prevail if all individuals enjoyed the survival conditions of the top income class. Using income distributions and life expectancy by wealth quintile, we find the bias to be substantial and highly heterogeneous, from negligible in parts of Central Asia to 15 percentage points in Bolivia and 36 in Bhutan. Aggregated, the correction reveals an invisible continent of more than 116 million uncounted poor, large enough to reverse international poverty rankings. Instrumenting health system coverage with malaria ecology, we then show that universal health coverage causally reduces both the bias and the steepness of the income-mortality gradient through which it arises. A ten point gain in coverage lowers the bias by about one percentage point, three times the OLS estimate. Progress toward universal health coverage therefore yields a second dividend, correcting a measurement distortion concentrated where deprivation is deepest.

Suggested Citation

  • Lefebvre, Mathieu & Onder, Harun & Pestieau, Pierre & Ponthière, Gregory & Suzuki, Emi, 2026. "The Invisible Continent. Counting the Missing Poor in Developing Countries," GLO Discussion Paper Series 1822, Global Labor Organization (GLO).
  • Handle: RePEc:zbw:glodps:1822
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/344029/1/GLO-DP-1822.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. James E Duggan & Robert Gillingham & John S Greenlees, 2008. "Mortality and Lifetime Income: Evidence from U.S. Social Security Records," IMF Staff Papers, Palgrave Macmillan, vol. 55(4), pages 566-594, December.
    2. Anna Stelzer, 2023. "Monetary policy and the joint distribution of income and wealth: The heterogeneous case of the euro area," Papers 2304.14264, arXiv.org.
    3. Mathieu Lefèbvre & Pierre Pestieau & Gregory Ponthiere, 2019. "Premature mortality and poverty measurement in an OLG economy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(2), pages 621-664, April.
    4. Mathieu Lefebvre & Pierre Pestieau & Gregory Ponthiere, 2023. "Counting the missing poor in pre-industrial societies," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 17(1), pages 155-183, January.
    5. James B. McDonald, 2008. "Some Generalized Functions for the Size Distribution of Income," Economic Studies in Inequality, Social Exclusion, and Well-Being, in: Duangkamon Chotikapanich (ed.), Modeling Income Distributions and Lorenz Curves, chapter 3, pages 37-55, Springer.
    6. Cristia, Julian P., 2009. "Rising mortality and life expectancy differentials by lifetime earnings in the United States," Journal of Health Economics, Elsevier, vol. 28(5), pages 984-995, September.
    7. Kakwani, N C & Podder, N, 1973. "On the Estimation of Lorenz Curves from Grouped Observations," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(2), pages 278-292, June.
    8. Deaton, Angus S & Paxson, Christina H, 1998. "Aging and Inequality in Income and Health," American Economic Review, American Economic Association, vol. 88(2), pages 248-253, May.
    9. Mathieu Lefebvre & Pierre Pestieau & Grégory Ponthière, 2018. "FGT Old-Age Poverty Measures and the Mortality Paradox : Theory and Evidence," Post-Print halshs-01630662, HAL.
    10. Lefebvre, Mathieu & Pestieau, Pierre & Ponthiere, Gregory, 2019. "Missing poor and income mobility," Journal of Comparative Economics, Elsevier, vol. 47(2), pages 330-366.
    11. Thomas Blanchet & Juliette Fournier & Thomas Piketty, 2022. "Generalized Pareto Curves: Theory and Applications," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(1), pages 263-288, March.
    12. Mathieu Lefebvre & Pierre Pestieau & Gregory Ponthiere, 2013. "Measuring poverty without the Mortality Paradox," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(1), pages 285-316, January.
    13. Cristia, Julian P., 2009. "Rising mortality and life expectancy differentials by lifetime earnings in the United States," Journal of Health Economics, Elsevier, vol. 28(5), pages 984-995, September.
    14. Mathieu Lefèbvre & Pierre Pestieau & Gregory Ponthiere, 2018. "FGT Old†Age Poverty Measures and the Mortality Paradox: Theory and Evidence," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(2), pages 428-458, June.
    15. Michele Belloni & Rob Alessie & Adriaan Kalwij & Chiara Marinacci, 2013. "Lifetime income and old age mortality risk in Italy over two decades," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(45), pages 1261-1298.
    16. Jean-Marie Baland & Guilhem Cassan & Benoit Decerf, 2021. ""Too Young to Die": Deprivation Measures Combining Poverty and Premature Mortality," American Economic Journal: Applied Economics, American Economic Association, vol. 13(4), pages 226-257, October.
    17. Angus Deaton, 2003. "Health, Inequality, and Economic Development," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 113-158, March.
    18. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    19. repec:dau:papers:123456789/451 is not listed on IDEAS
    20. Decerf, Benoit & Ferreira, Francisco H.G. & Mahler, Daniel G. & Sterck, Olivier, 2021. "Lives and livelihoods: Estimates of the global mortality and poverty effects of the Covid-19 pandemic," World Development, Elsevier, vol. 146(C).
    21. repec:hal:pseose:hal-00813214 is not listed on IDEAS
    22. Backlund, Eric & Sorlie, Paul D. & Johnson, Norman J., 1999. "A comparison of the relationships of education and income with mortality: the national longitudinal mortality study," Social Science & Medicine, Elsevier, vol. 49(10), pages 1373-1384, November.
    23. Kevin Milligan & Tammy Schirle, 2021. "The evolution of longevity: Evidence from Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(1), pages 164-192, February.
    24. Gholamreza Hajargasht & William E. Griffiths & Joseph Brice & D.S. Prasada Rao & Duangkamon Chotikapanich, 2012. "Inference for Income Distributions Using Grouped Data," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 30(4), pages 563-575, May.
    25. N. Meltem Daysal & Michael F. Lovenheim & David N. Wasser, 2022. "The Correlation of Net and Gross Wealth across Generations: The Role of Parent Income and Child Age," AEA Papers and Proceedings, American Economic Association, vol. 112, pages 73-77, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mathieu Lefebvre & Pierre Pestieau & Gregory Ponthiere, 2024. "Missing Poor in the U.S," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 22(4), pages 865-891, December.
    2. Lefebvre, Mathieu & Pestieau, Pierre & Ponthiere, Gregory, 2019. "Missing poor and income mobility," Journal of Comparative Economics, Elsevier, vol. 47(2), pages 330-366.
    3. Mathieu Lefèbvre & Pierre Pestieau & Gregory Ponthiere, 2019. "Premature mortality and poverty measurement in an OLG economy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 32(2), pages 621-664, April.
    4. Mathieu Lefebvre & Pierre Pestieau & Gregory Ponthiere, 2023. "Counting the missing poor in pre-industrial societies," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 17(1), pages 155-183, January.
    5. Mathieu Lefèbvre & Pierre Pestieau & Gregory Ponthiere, 2018. "FGT Old†Age Poverty Measures and the Mortality Paradox: Theory and Evidence," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(2), pages 428-458, June.
    6. Mathieu Lefebvre & Pierre Pestieau & Grégory Ponthière, 2013. "FGT Poverty Measures and the Mortality Paradox: Theory and Evidence," Working Papers halshs-00845490, HAL.
    7. Marie-Louise Leroux & Pierre Pestieau & Grégory Ponthière, 2015. "Longévité différentielle et redistribution : enjeux théoriques et empiriques," L'Actualité Economique, Société Canadienne de Science Economique, vol. 91(4), pages 465-497.
    8. Benoit Decerf & Christopher Hoy & Olivier Sterck, 2026. "For shorter or poorer: attitudes toward the trade-off between poverty and mortality," IFS Working Papers W26/22, Institute for Fiscal Studies.
    9. Enora Belz, 2019. "Estimating Inequality Measures from Quantile Data," Economics Working Paper Archive (University of Rennes & University of Caen) 2019-09, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    10. Connolly, Marie & Leroux, Marie-Louise & Konou, Akakpo Domefa, 2025. "Evaluating the relationship between income, survival and loss of autonomy among older Canadians," The Journal of the Economics of Ageing, Elsevier, vol. 31(C).
    11. Decerf,Benoit Marie A, 2024. "Multidimensional Well-Being Measurement Practices : A Review Focused on Improving Global Multidimensional Poverty Indicators," Policy Research Working Paper Series 10800, The World Bank.
    12. Valderrama, José A., 2024. "Regressivity in public pension systems: The case of Peru," The Journal of the Economics of Ageing, Elsevier, vol. 29(C).
    13. Lee, Ji Hyung & Sasaki, Yuya & Toda, Alexis Akira & Wang, Yulong, 2024. "Tuning parameter-free nonparametric density estimation from tabulated summary data," Journal of Econometrics, Elsevier, vol. 238(1).
    14. Renaud Bourlès & Santiago López-Cantor, 2024. "Pension's Resource-Time Trade-off: The Role of Inequalities in the Design of Retirement Schemes," Working Papers hal-04652433, HAL.
    15. Mathias Silva, 2023. "Parametric estimation of income distributions using grouped data: an Approximate Bayesian Computation approach [Working Papers / Documents de travail]," Working Papers hal-04066544, HAL.
    16. Kåre Bævre & Øystein Kravdal, 2014. "The effects of earlier income variation on mortality: An analysis of Norwegian register data," Population Studies, Taylor & Francis Journals, vol. 68(1), pages 81-94, March.
    17. Duclos, Jean-Yves & Leblanc, Josée & Sahn, David E., 2011. "Comparing population distributions from bin-aggregated sample data: An application to historical height data from France," Economics & Human Biology, Elsevier, vol. 9(4), pages 419-437.
    18. Roozbeh Hosseini & Ali Shourideh, 2019. "Retirement Financing: An Optimal Reform Approach," Econometrica, Econometric Society, vol. 87(4), pages 1205-1265, July.
    19. Gholamreza Hajargasht & William E. Griffiths, 2016. "Inference for Lorenz Curves," Department of Economics - Working Papers Series 2022, The University of Melbourne.
    20. Benjamin Ho & Sita N. Slavov, 2012. "An alternative perspective on health inequality," Economics Bulletin, AccessEcon, vol. 32(4), pages 3182-3196.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:glodps:1822. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/glabode.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.