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A note on the measurement of poverty persistence

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  • Villar, Antonio

Abstract

This paper introduces a poverty index that incorporates poverty persistence as an integral part of poverty measurement within a multiperiod framework. Using familiar tools (logarithmic utilities and a utilitarian social welfare function) we obtain a mathematically straightforward poverty index, which can be interpreted as an estimate of the social cost of poverty. This index can be neatly decomposed into incidence, intensity, and inequality, and is additively decomposable by population subgroups. It consists of the log of the geometric mean of individual intertemporal utility losses.

Suggested Citation

  • Villar, Antonio, 2024. "A note on the measurement of poverty persistence," Economics Letters, Elsevier, vol. 236(C).
    • Handle: RePEc:eee:ecolet:v:236:y:2024:i:c:s0165176524000545
    DOI: 10.1016/j.econlet.2024.111571
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    References listed on IDEAS

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    1. Mary Jo Bane & David T. Ellwood, 1986. "Slipping into and out of Poverty: The Dynamics of Spells," Journal of Human Resources, University of Wisconsin Press, vol. 21(1), pages 1-23.
    2. Carlos Gradín & Coral Del Río & Olga Cantó, 2012. "Measuring Poverty Accounting For Time," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(2), pages 330-354, June.
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    5. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    6. Alessio Fusco & Philippe Van Kerm, 2023. "Measuring poverty persistence," Chapters, in: Jacques Silber (ed.), Research Handbook on Measuring Poverty and Deprivation, chapter 18, pages 192-200, Edward Elgar Publishing.
    7. Aaron Nicholas & Ranjan Ray, 2023. "Chronic poverty measures," Chapters, in: Jacques Silber (ed.), Research Handbook on Measuring Poverty and Deprivation, chapter 17, pages 181-191, Edward Elgar Publishing.
    8. Alkire, Sabina & Apablaza, Mauricio & Chakravarty, Satya & Yalonetzky, Gaston, 2017. "Measuring chronic multidimensional poverty," Journal of Policy Modeling, Elsevier, vol. 39(6), pages 983-1006.
    9. Indranil Dutta & Laurence Roope & Horst Zank, 2013. "On intertemporal poverty measures: the role of affluence and want," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(4), pages 741-762, October.
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    More about this item

    Keywords

    Poverty persistence; Welfare loss; Logarithmic utility; Utilitarian welfare function; Decomposability;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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