Article (Scientific journals)
Measuring poverty without the Mortality Paradox
Lefebvre, Mathieu; Pestieau, Pierre; Ponthiere, Grégory
2013In Social Choice and Welfare, 40 (1), p. 285-316
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Abstract :
[en] Under income-differentiated mortality, poverty measures reflect not only the “true” poverty, but, also, the interferences or noise caused by the survival process at work. Such interferences lead to the Mortality Paradox: the worse the survival conditions of the poor are, the lower the measured poverty is. We examine several solutions to avoid that paradox. We identify conditions under which the extension, by means of a fictitious income, of lifetime income profiles of the prematurely dead neutralizes the noise due to differential mortality. Then, to account not only for the “missing” poor, but, also, for the “hidden” poverty (premature death), we use, as a fictitious income, the welfare-neutral income, making indifferent between life continuation and death. The robustness of poverty measures to the extension technique is illustrated with regional Belgian data.
Disciplines :
Economic systems & public economics
Author, co-author :
Lefebvre, Mathieu  ;  Université de Liège - ULiège > HEC-Ecole de gestion : UER > Economie politique et finances publiques
Pestieau, Pierre  ;  Université de Liège - ULiège > HEC-Ecole de gestion > HEC-Ecole de gestion
Ponthiere, Grégory ;  Université de Liège - ULiège > HEC-Ecole de gestion > HEC-Ecole de gestion
Language :
English
Title :
Measuring poverty without the Mortality Paradox
Publication date :
January 2013
Journal title :
Social Choice and Welfare
ISSN :
0176-1714
eISSN :
1432-217X
Publisher :
Springer Science & Business Media B.V.
Volume :
40
Issue :
1
Pages :
285-316
Peer reviewed :
Peer Reviewed verified by ORBi
Available on ORBi :
since 28 March 2013

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