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Poverty, richness, and inequality: Evidence for Portugal using a housing comfort index

Author

Listed:
  • Fernandes, Cristina

    (Statistics Portugal (INE))

  • Fernandes, Cristina

    (Instituto Universitário de Lisboa (ISCTE-IUL))

  • Crespo, Nuno

    (Instituto Universitário de Lisboa (ISCTE-IUL))

  • Simoes, Nadia

    (Instituto Universitário de Lisboa (ISCTE-IUL))

Abstract

With data for Portugal we propose an index of housing comfort based on the Household Budget Survey. This index covers housing and durable goods grouped in two dimensions: basic comfort and complementary comfort. Taking this index as starting point we make two contributions. First we quantify the phenomena of poverty, richness, and inequality in housing comfort. Second, using an ordered probit model, we evaluate the determinants of housing comfort in Portugal. The results show significant rates of poverty (12.41%) and richness (22.03%). The evidence sustains that the differences between households derive mainly from complementary comfort and to a lesser extent from basic comfort items. Inequality in housing comfort, measured by the Gini coefficient, stands at 0.1263. The econometric study reveals that the region of residence of the household and the educational level and labor market state of the household reference person are among the most critical determinant factors of housing comfort.

Suggested Citation

  • Fernandes, Cristina & Fernandes, Cristina & Crespo, Nuno & Simoes, Nadia, 2016. "Poverty, richness, and inequality: Evidence for Portugal using a housing comfort index," Journal of Economic and Social Measurement, IOS Press, issue 4, pages 371-394.
    • Handle: RePEc:ris:iosjes:0062
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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.

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    More about this item

    Keywords

    Wealth; Portugal; poverty; richness; inequality; housing comfort;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values

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