Measuring Chronic Non-Income Poverty

21 Pages Posted: 3 Feb 2011

See all articles by Isabel Günther

Isabel Günther

ETH Zürich - Department of Humanities, Social and Political Sciences (GESS)

Stephan Klasen

University of Goettingen (Gottingen) - Faculty of Economics and Business Administration; CESifo (Center for Economic Studies and Ifo Institute); IZA Institute of Labor Economics

Date Written: May 2007

Abstract

Based on Amartya Sen’s groundbreaking work on capabilities and functionings, static poverty measures have long used non-income indicators. In contrast, measures of poverty dynamics, including chronic poverty, have in general conceptualized poverty only in an income dimension. Hence, this paper first critically discusses the conceptual and empirical potentials as well as the limitations of analysing chronic poverty from a non-income perspective. Second, it proposes methods to empirically measure chronic non-income poverty, with an exploratory application to panel data from Vietnam from 1992 and 1997, and demonstrates that a range of useful insights can be generated from such an analysis. In particular, we find that the correlation between chronic income and non-income poverty is rather low. This is mostly due to a low correlation between income and non-income poverty in each period, while both move relatively closely over time. We also find a surprising amount of heterogeneity in static and dynamic non-income poverty within households. However, our analysis also shows that longer panel data with more comprehensive information on non-income dimensions of wellbeing would be needed.

Keywords: intergenerational transmission of poverty, data, USA, south-north

Suggested Citation

Günther, Isabel and Klasen, Stephan, Measuring Chronic Non-Income Poverty (May 2007). Chronic Poverty Research Centre Working Paper No. 79. Available at SSRN: https://ssrn.com/abstract=1752956 or http://dx.doi.org/10.2139/ssrn.1752956

Isabel Günther

ETH Zürich - Department of Humanities, Social and Political Sciences (GESS) ( email )

ETH-Zentrum SEW E 26
CH-8092 Zurich
Switzerland

Stephan Klasen (Contact Author)

University of Goettingen (Gottingen) - Faculty of Economics and Business Administration ( email )

Platz der Goettinger Sieben 3
Goettingen, 37073
Germany
+49-551-397303 (Phone)
+49-551-397302 (Fax)

HOME PAGE: www.vwl.wiso.uni-goettingen.de/klasen.html

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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