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Why is it so hard to reach the EU’s ‘poverty’ target?

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  • Zsolt Darvas

Abstract

"This paper has been published in Social Indicators Research." The Europe 2020 strategy for smart, sustainable and inclusive growth set a target of lifting more than 20 million people out of poverty, but European Union countries have struggled to make progress towards the target. Zsolt Darvas demonstrates both theoretically and empirically that the ‘poverty’ indicator in the Europe 2020 strategy essentially measures income inequality, not poverty. His illustrative calculations show that even...

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  • Zsolt Darvas, 2017. "Why is it so hard to reach the EU’s ‘poverty’ target?," Policy Contributions 18563, Bruegel.
    • Handle: RePEc:bre:polcon:18563
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    References listed on IDEAS

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    1. Angus Deaton, 2016. "Measuring and Understanding Behavior, Welfare, and Poverty," American Economic Review, American Economic Association, vol. 106(6), pages 1221-1243, June.
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    4. Zsolt Darvas & Guntram B. Wolff & Bruegel, . "An anatomy of inclusive growth in Europe," Blueprints, Bruegel, number 17266, June.
    5. Alkire, Sabina & Foster, James & Seth, Suman & Santos, Maria Emma & Roche, Jose Manuel & Ballon, Paola, 2015. "Multidimensional Poverty Measurement and Analysis," OUP Catalogue, Oxford University Press, number 9780199689491.
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    9. Zsolt Darvas, 2016. "Some are more equal than others: new estimates of global and regional inequality," CERS-IE WORKING PAPERS 1635, Institute of Economics, Centre for Economic and Regional Studies.
    10. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    11. James Foster & Joel Greer & Erik Thorbecke, 2010. "The Foster–Greer–Thorbecke (FGT) poverty measures: 25 years later," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 491-524, December.
    12. James E. Foster & Joel Greer & Erik Thorbecke, 2010. "The Foster-Greer-Thorbecke (FGT) Poverty Measures: Twenty-Five Years Later," Working Papers 2010-14, The George Washington University, Institute for International Economic Policy.
    13. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    14. Sabina Alkire, James E. Foster, Suman Seth, Maria Emma Santos, Jose M. Roche and Paola Ballon, 2015. "Multidimensional Poverty Measurement and Analysis: Chapter 9 - Distribution and Dynamics," OPHI Working Papers ophiwp090_ch9.pdf, Queen Elizabeth House, University of Oxford.
    15. Atkinson, Tony & Cantillon, Bea & Marlier, Eric & Nolan, Brian, 2002. "Social Indicators: The EU and Social Inclusion," OUP Catalogue, Oxford University Press, number 9780199253494.
    16. Zsolt Darvas & Olga Tschekassin, 2015. "Poor and under pressure- the social impact of Europe's fiscal consolidation," Policy Contributions 877, Bruegel.
    17. Easterlin, Richard A., 1995. "Will raising the incomes of all increase the happiness of all?," Journal of Economic Behavior & Organization, Elsevier, vol. 27(1), pages 35-47, June.
    18. Sabina Alkire, James E. Foster, Suman Seth, Maria Emma Santos, José M. Roche and Paola Ballon, 2015. "Multidimensional Poverty Measurement and Analysis: Chapter 7 - Data and Analysis," OPHI Working Papers ophiwp088_ch7.pdf, Queen Elizabeth House, University of Oxford.
    19. Sabina Alkire & Maria Santos, 2013. "A Multidimensional Approach: Poverty Measurement & Beyond," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 112(2), pages 239-257, June.
    20. Anthony B. Atkinson & Eric Marlier & Brian Nolan, 2004. "Indicators and Targets for Social Inclusion in the European Union," Journal of Common Market Studies, Wiley Blackwell, vol. 42(1), pages 47-75, February.
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    1. Richard Gardiner & Petr Hajek, 2024. "The Role of R&D Intensity and Education in a Model of Inequality, Growth and Risk of Poverty: Evidence from Europe," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 1845-1870, March.
    2. Achille Lemmi & Donatella Grassi & Alessandra Masi & Nicoletta Pannuzi & Andrea Regoli, 2019. "Methodological Choices and Data Quality Issues for Official Poverty Measures: Evidences from Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(1), pages 299-330, January.
    3. Anna Magdalena Korzeniowska, 2021. "Heterogeneity of government social spending in European Union countries," Future Business Journal, Springer, vol. 7(1), pages 1-9, December.
    4. Eva Kovarova & Tomas Vana, 2023. "Reduction of Poverty and Material Deprivation in the EU Countries: What Matters the Most?," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 3-23.
    5. Andrea Cutillo, 2023. "The measurement of absolute poverty in Italy: an overview and a revision based on the database of real estate leases of the tax agency," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 77(1), pages 4-12, January-M.
    6. Angeles Sánchez & María J. Ruiz-Martos, 2018. "Europe 2020 Strategy and Citizens’ Life Satisfaction," Journal of Happiness Studies, Springer, vol. 19(8), pages 2315-2338, December.
    7. Simona Ballabio & Marianna Filandri & Lia Pacelli & Flavio Verrecchia, 2022. "Poverty of Young People: Context and Household Effects in North-Western Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 161(2), pages 819-842, June.
    8. Jorge Chica‐Olmo & Marina Checa‐Olivas, 2021. "Spatial impact of factors influencing the achievement of the Europa2020 employment targets," Papers in Regional Science, Wiley Blackwell, vol. 100(3), pages 633-649, June.
    9. Andrea Cutillo & Michele Raitano & Isabella Siciliani, 2022. "Income-Based and Consumption-Based Measurement of Absolute Poverty: Insights from Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 161(2), pages 689-710, June.
    10. Uuriintuya Batsaikhan & Zsolt Darvas & Inês Goncalves Raposo, . "People on the move- migration and mobility in the European Union," Blueprints, Bruegel, number 23874, June.
    11. Balint Menyhert, 2024. "Absolute Poverty Measurement with Minimum Food Needs: A New Inverse Method for Advanced Economies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 174(1), pages 313-351, August.

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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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