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Who are the poor? Who are the rich? Evidence for Portugal

Author

Listed:
  • Nuno Crespo
  • Sandrina B. Moreira
  • Nádia Simões

Abstract

Purpose - The purpose of this paper is to identify the main determinants of the probability of a household being poor, middle class, or rich. Design/methodology/approach - A new and integrated approach to the measurement of inequality in income distribution, poverty, and richness was recently proposed. Based on that approach and considering data for the Portuguese economy, the authors estimate a multinomial model in order to identify the main determinants of the probability of a household being poor, middle class, or rich using a set of characteristics of the households and the household's individual of reference as explanatory variables. Findings - The evidence obtained indicates that: the determinants of poverty and richness are similar in qualitative terms; and household type, main source of income, education, and labor market state are the most important factors explaining these phenomena. Originality/value - Following a methodology recently proposed by Crespoet al.toward an integrated measurement of inequality, poverty, and richness, the present study contributes to this line of research by using a micro‐econometric model applied to the Portuguese economy in order to identify the determinants of poverty and richness.

Suggested Citation

  • Nuno Crespo & Sandrina B. Moreira & Nádia Simões, 2013. "Who are the poor? Who are the rich? Evidence for Portugal," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 40(6), pages 579-590, May.
    • Handle: RePEc:eme:ijsepp:v:40:y:2013:i:6:p:579-590
    DOI: 10.1108/03068291311321866
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    Citations

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    Cited by:

    1. Aurora A. C. Teixeira & Ana Sofia Loureiro, 2019. "FDI, income inequality and poverty: a time series analysis of Portugal, 1973–2016," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 18(3), pages 203-249, October.
    2. Tuyen, Tran Quang, 2014. "The Impact Of Farmland Loss On Income Distribution Of Households In Hanoi'S Peri-Urban Areas, Vietnam," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 55(2), pages 189-206, December.

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