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Panel regression models for measuring poverty dynamics in Great Britain

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  • Betti, Gianni
  • D'Agostino, Antonella
  • Neri, Laura

Abstract

In this paper we aim at studying poverty dynamics and the socio-demographic factors influencing it; alternative measures for the definition of the concept of poverty, making use of panel regression models, are compared. The introduction of two alternative measures is necessary in order to overcome some limitations of the so-called traditional approach. n the traditional approach to poverty measurement a statistical unit (individual or household) is defined as poor if its net equivalent household income is below a certain threshold, the poverty line, ie a percentage of the mean or median of the overall income distribution; let us know consider some limitations. The division of the popularion into the dichotomy of the poor and the non poor seems to be an over simplification; in fact, as pointed out by Cheli and Lemmi (1995) '... poverty is not a simple attribute that characterises an individual in terms of its presence or absence'; we also believe that the relative well-being of a statistical unit is a matter of degree. Moreover, poverty measures based only on monetary variables are not able to capture all the aspects and nuances of the phenomenon; multidimensional indicators seem to be more appropriate in order to describe deprivation better. Finally in a dynamic context, the traditional approach has a further limitation: the mobility of the unitgs near to the poverty line is overestimated. Another aspect to be discussed is that in the context of poverty dynamics analysis there is no unanimity in the choice of the longitudinal units; the controversy is about choosing individuals or households. In any case, it seems reasonable to consider variables regarding the household as poverty indicators, particularly when a multidimensional concept of poverty is considered. On the other hand, it is difficult to define the household as a longitudinal unit of analysis in any rigorous way.

Suggested Citation

  • Betti, Gianni & D'Agostino, Antonella & Neri, Laura, 2000. "Panel regression models for measuring poverty dynamics in Great Britain," ISER Working Paper Series 2000-42, Institute for Social and Economic Research.
  • Handle: RePEc:ese:iserwp:2000-42
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    Cited by:

    1. Luis Ayala (*) & Carolina Navarro, "undated". "Multidimensional Indices Of Housing Deprivation With Application To Spain," Working Papers 12-04 Classification-JEL , Instituto de Estudios Fiscales.
    2. Antonella D’Agostino & Andrea Regoli, 2013. "Life Conditions and Opportunities of Young Adults: Evidence from Italy in European Comparative Perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(3), pages 1205-1235, September.
    3. Rolf Aaberge & Andrea Brandolini, 2014. "Multidimensional poverty and inequality," Discussion Papers 792, Statistics Norway, Research Department.
    4. Sung-Geun Kim, 2015. "Fuzzy Multidimensional Poverty Measurement: An Analysis of Statistical Behaviors," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(3), pages 635-667, February.
    5. Maggio, Guido, 2004. "Multidimensional analysis of poverty dynamics in Great Britain," ISER Working Paper Series 2004-10, Institute for Social and Economic Research.
    6. Gianni Betti & Francesca Gagliardi & Achille Lemmi & Vijay Verma, 2015. "Comparative measures of multidimensional deprivation in the European Union," Empirical Economics, Springer, vol. 49(3), pages 1071-1100, November.
    7. Gianni Betti & Bruno Cheli & Riccardo Cambini, 2004. "A statistical model for the dynamics between two fuzzy states: theory and an application to poverty analysis," Metron - International Journal of Statistics, Dipartimento di Statistica, Probabilità e Statistiche Applicate - University of Rome, vol. 0(3), pages 391-411.
    8. Carolina Navarro & Luis Ayala, 2008. "Multidimensional housing deprivation indices with application to Spain," Applied Economics, Taylor & Francis Journals, vol. 40(5), pages 597-611.
    9. Fotis Papadopoulos & Panos Tsakloglou, 2015. "Chronic material deprivation and long-term poverty in Europe in the pre-crisis period," ImPRovE Working Papers 15/16, Herman Deleeck Centre for Social Policy, University of Antwerp.
    10. Ayala, Luis & Navarro, Carolina, 2007. "The dynamics of housing deprivation," Journal of Housing Economics, Elsevier, vol. 16(1), pages 72-97, March.
    11. Kojo Appiah-Kubi & Edward Amanning-Ampomah & Christian Ahortor, 2007. "Multi-Dimensional Analysis of Poverty in Ghana Using Fuzzy Sets Theory," Working Papers PMMA 2007-21, PEP-PMMA.
    12. Cecilia Albert Verdú & María A. Davia Rodríguez, 2009. "Monetary poverty, education exclusion and material deprivation amongst youth in Spain," Alcamentos 0903, Universidad de Alcalá, Departamento de Economía..
    13. RAILEANU SZELES Monica, 2004. "Multidimensional Poverty Comparisons within Europe. Evidence from the European Community Household Panel," IRISS Working Paper Series 2004-05, IRISS at CEPS/INSTEAD.

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