Why not consider that being absolutely poor is worse than being only relatively poor?

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Résumé

No current strategy to measure income poverty is able to (i) account for both its absolute and relative aspects and (ii) always consider that an individual who is absolutely poor is poorer than another individual who is only relatively poor. I propose a measure of income poverty satisfying (i) and (ii). Unlike alternative proposals satisfying (i), a decrease in a poor individual's income never reduces this measure. An application illustrates that the measure yields intuitive judgments about unequal growth experiences, for which all absolute (resp. relative) poverty measures systematically conclude that poverty has decreased (resp. increased).
langue originaleAnglais
Pages (de - à)79-92
Nombre de pages14
journalJournal of Public Economics
Volume152
Les DOIs
Etat de la publicationPublié - 1 août 2017

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