Fair and Welfare-Consistent Global Income Poverty Measurement : Theory and Application

Fair and Welfare-Consistent Global Income Poverty Measurement : Theory and Application

There is growing support for the idea that global income poverty should be assessed with a measure accounting for both own income and relative income. The trade-off that such a measure makes between own income and relative income is the key questio...

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Main Authors: Decerf, Benoit, Ferrando, Mery, Quinn, Natalie N.
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
POVERTY MEASUREMENT
INCOME POVERTY
WELFARE-CONSISTENCY
RELATIVE POVERTY
ABSOLUTE POVERTY
Online Access:http://documents.worldbank.org/curated/undefined/407061636400299012/Fair-and-Welfare-Consistent-Global-Income-Poverty-Measurement-Theory-and-Application
http://hdl.handle.net/10986/36556
id okr-10986-36556
recordtype oai_dc
spelling okr-10986-365562021-11-13T05:10:44Z Fair and Welfare-Consistent Global Income Poverty Measurement : Theory and Application Decerf, Benoit Ferrando, Mery Quinn, Natalie N. POVERTY MEASUREMENT INCOME POVERTY WELFARE-CONSISTENCY RELATIVE POVERTY ABSOLUTE POVERTY There is growing support for the idea that global income poverty should be assessed with a measure accounting for both own income and relative income. The trade-off that such a measure makes between own income and relative income is the key question. Non-paternalism requires that this trade-off be welfareconsistent, that is, related to individual preferences. This paper studies the implications of requiring that the poverty measure makes a fair and welfare-consistent aggregation of individual preferences. The results provide support for the absolute and relative global lines proposed in the literature but rule out the use of classical poverty indexes. In particular, the paper finds that the ubiquitoushead-count ratio violates a minimal welfare-consistency property. The paper shows empirically that using a modification of the head-count ratio that satisfies this property has major implications for the evaluation of global poverty. 2021-11-12T20:18:18Z 2021-11-12T20:18:18Z 2021-11 Working Paper http://documents.worldbank.org/curated/undefined/407061636400299012/Fair-and-Welfare-Consistent-Global-Income-Poverty-Measurement-Theory-and-Application http://hdl.handle.net/10986/36556 English Policy Research Working Paper;No. 9844 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic POVERTY MEASUREMENT
INCOME POVERTY
WELFARE-CONSISTENCY
RELATIVE POVERTY
ABSOLUTE POVERTY
spellingShingle POVERTY MEASUREMENT
INCOME POVERTY
WELFARE-CONSISTENCY
RELATIVE POVERTY
ABSOLUTE POVERTY
Decerf, Benoit
Ferrando, Mery
Quinn, Natalie N.
Fair and Welfare-Consistent Global Income Poverty Measurement : Theory and Application
relation Policy Research Working Paper;No. 9844
description There is growing support for the idea that global income poverty should be assessed with a measure accounting for both own income and relative income. The trade-off that such a measure makes between own income and relative income is the key question. Non-paternalism requires that this trade-off be welfareconsistent, that is, related to individual preferences. This paper studies the implications of requiring that the poverty measure makes a fair and welfare-consistent aggregation of individual preferences. The results provide support for the absolute and relative global lines proposed in the literature but rule out the use of classical poverty indexes. In particular, the paper finds that the ubiquitoushead-count ratio violates a minimal welfare-consistency property. The paper shows empirically that using a modification of the head-count ratio that satisfies this property has major implications for the evaluation of global poverty.
format Working Paper
author Decerf, Benoit
Ferrando, Mery
Quinn, Natalie N.
author_facet Decerf, Benoit
Ferrando, Mery
Quinn, Natalie N.
author_sort Decerf, Benoit
title Fair and Welfare-Consistent Global Income Poverty Measurement : Theory and Application
title_short Fair and Welfare-Consistent Global Income Poverty Measurement : Theory and Application
title_full Fair and Welfare-Consistent Global Income Poverty Measurement : Theory and Application
title_fullStr Fair and Welfare-Consistent Global Income Poverty Measurement : Theory and Application
title_full_unstemmed Fair and Welfare-Consistent Global Income Poverty Measurement : Theory and Application
title_sort fair and welfare-consistent global income poverty measurement : theory and application
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/undefined/407061636400299012/Fair-and-Welfare-Consistent-Global-Income-Poverty-Measurement-Theory-and-Application
http://hdl.handle.net/10986/36556
_version_ 1764485488969777152

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