Welfare Dynamics Measurement : Two Definitions of a Vulnerability Line and Their Empirical Application

Little research currently exists on a vulnerability line that distinguishes the poor population from the population that is not poor but that still faces significant risk of falling back into poverty. This paper attempts to fill this gap by proposi...

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Bibliographic Details
Main Authors:	Dang, Hai-Anh H., Lanjouw, Peter F.
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ABUSE CALORIE INTAKE CHRONIC POVERTY CHRONICALLY POOR CLASS LINES CONSUMPTION GROWTH CROSS-SECTION DATA CROSS-SECTIONAL DATA CUMULATIVE DISTRIBUTION FUNCTION DAILY INCOME DATA SETS DECREASING FUNCTION DEMOCRACY DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DEVELOPMENT OUTCOMES DEVELOPMENT POLICY DISEASES EARNINGS INEQUALITY ECONOMIC DEVELOPMENT ECONOMIC FACTORS ECONOMIC GROWTH ECONOMIC INEQUALITY ECONOMIC STATUS EMPIRICAL APPLICATION EMPIRICAL ISSUE ENVIRONMENTAL CHANGE FOOD INSECURITY FOOD SECURITY FUNCTIONAL FORM GEOGRAPHIC REGIONS HEALTH INSURANCE HIGH SCHOOL EDUCATION HOUSEHOLD COMPOSITION HOUSEHOLD CONSUMPTION HOUSEHOLD HEAD HOUSEHOLD HEADS HOUSEHOLD INCOME HOUSEHOLD LEVEL HOUSEHOLD LIVING STANDARDS HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD WELFARE HUMAN DEVELOPMENT INCOME INCOME DATA INCOME DISTRIBUTION INCOME DYNAMICS INCOME GROUPS INCOME INEQUALITY INCOME LEVEL INCOME LEVELS INCOMES INEQUALITY LEVELS OF EDUCATION LOGARITHMIC SCALE LOW-INCOME COUNTRIES LOW-INCOME COUNTRY MACROECONOMIC CONDITIONS MEASUREMENT ERRORS MEASUREMENT OF POVERTY MEASURING POVERTY MIDDLE CLASS MIDDLE CLASS CONSENSUS NATIONAL POVERTY NATIONAL POVERTY LINE NATIONAL POVERTY LINES NATIONAL POVERTY RATE NEGATIVE CORRELATION NEW POOR NORMAL DISTRIBUTION NUMBER OF CHILDREN PER CAPITA CONSUMPTION POLICY DISCUSSIONS POLICY MAKERS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POOR POOR COUNTRIES POOR HOUSEHOLD POOR HOUSEHOLDS POOR POPULATION POPULATION GROUPS POVERTY ANALYSIS POVERTY ASSESSMENT POVERTY DYNAMICS POVERTY LEVEL POVERTY LINE POVERTY LINES POVERTY MEASUREMENT POVERTY MEASURES POVERTY RATE POVERTY RATES POVERTY REDUCTION PROGRESS PUBLIC ATTENTION PUBLIC ECONOMICS PUBLIC TRANSFERS PURCHASING POWER PURCHASING POWER PARITY QUALITY CONTROL RICHER COUNTRIES RISING CONSUMPTION RISING INEQUALITY RISK SHARING RURAL RURAL AREAS SCHOOLING SECONDARY EDUCATION SOCIAL ASSISTANCE SOCIAL COHESION SOCIAL PROTECTION SOCIAL RESEARCH SOCIAL SECURITY TARGETING VULNERABILITY VULNERABILITY ASSESSMENT VULNERABILITY TO POVERTY WAR WELFARE MEASURES
Online Access:	http://documents.worldbank.org/curated/en/2014/06/19705818/welfare-dynamics-measurement-two-definitions-vulnerability-line-empirical-application http://hdl.handle.net/10986/18831

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Summary:	Little research currently exists on a vulnerability line that distinguishes the poor population from the population that is not poor but that still faces significant risk of falling back into poverty. This paper attempts to fill this gap by proposing vulnerability lines that can be straightforwardly estimated with panel or cross-sectional household survey data, in rich- and poor-country settings. These vulnerability lines offer a means to broaden traditional poverty analysis and can also assist with the identification of the middle class or resilient population groups. Empirical illustrations are provided using panel data from the United States (Panel Study of Income Dynamics) and Vietnam (Vietnam Household Living Standards Survey) for the period 2004-2008 and cross-sectional data from India (National Sample Survey) for the period 2004-2009. The estimation results indicate that in Vietnam and India during this time period, the population living in poverty and the middle class have been falling and expanding, respectively, while the opposite has been occurring in the United States.

Welfare Dynamics Measurement : Two Definitions of a Vulnerability Line and Their Empirical Application

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