Decomposing the changes in poverty: Poverty line and distributional effects

Aristondo, Oihana; d'Ambrosio, Conchita; Lasso de la Vega, Casilda

Reference : Decomposing the changes in poverty: Poverty line and distributional effects


	Document type :	Scientific journals : Article
	Discipline(s) :	Business & economic sciences : Social economics
	To cite this reference:	http://hdl.handle.net/10993/55132

Title :	Decomposing the changes in poverty: Poverty line and distributional effects
Language :	English
Author, co-author :	Aristondo, Oihana [Universidad del País Vasco (España) = University of the Basque Country (Spain) - UPV]
	d'Ambrosio, Conchita [University of Luxembourg > Faculty of Humanities, Education and Social Sciences (FHSE) > Department of Behavioural and Cognitive Sciences (DBCS) >]
	Lasso de la Vega, Casilda [Universidad del País Vasco (España) = University of the Basque Country (Spain) - UPV]
Publication date :	In press
Journal title :	Bulletin of Economic Research
Publisher :	Wiley-Blackwell
Peer reviewed :	Yes
ISSN :	0307-3378
e-ISSN :	1467-8586
City :	Oxford
Country :	United Kingdom
Keywords :	[en] Poverty ; Decomposition ; Living standards
Abstract :	[en] When measuring poverty in developed countries, the poverty line used to identify the poor is usually relative and set as a percentage of the median (or of the mean) of the total income. In consequence, when poverty is analyzed over a period of time, changes in the poverty level depend on the impact of evolving standards. To eliminate this effect, sometimes, an anchored poverty line is used. Furthermore, changes in the mean of the distribution and in the inequality among the poor may also affect the poverty levels. This note proposes a decomposition of the changes in poverty as the sum of four terms. The first two reflect the impact in poverty of changes in living standards and the other two measure the effect of the distributional growth and redistribution. This decomposition will help policymakers in the implementation of a more specific antipoverty agenda. An application with data from the European Union Survey on Income and Living Conditions shows the potential of the decomposition proposed.
Permalink :	http://hdl.handle.net/10993/55132

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