A Poisson-Based Framework for Setting Poverty Thresholds Using Indicator Lists

Babones, Salvatore; Moussa, Jehane Simona; Suter, Christian

doi:10.1007/s11205-015-0919-4

Cited by 9 publications

(28 citation statements)

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“…Despite its advantages, such as its statistical comparability to measure income poverty across time and countries, the arop60 indicator might be problematic for the purpose of assessing income adequacy. First, there is no evidence on the extent to which an income at the level of the arop60 enables to live a life in human dignity nor if it represents the same living standard across time and countries (Goedemé et al 2019;Fahey 2007;Babones et al 2016). A study of Goedemé et al (2019) has shown that the arop60 approaches an adequate living standard in most richer member states, while the level is far from a decent income in poorer member states.…”

Section: Introductionmentioning

confidence: 99%

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2019

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The right to adequate minimum income protection is one of the key principles included in the European Pillar of Social Rights (EPSR). The EPSR takes a right-based and normative approach, aiming specifically at fulfilling people's essential needs, not only by guaranteeing sufficiently high income levels, but also by promoting labour market inclusion and access to affordable goods and services of good quality. This paper takes the EPSR as a starting point to propose a needs-based indicator that assesses the adequacy of minimum income protection including these three dimensions in a comprehensive way. We argue that Reference Budgets (RBs), priced baskets of goods and services that represent an adequate living standard, are well-suited to construct such an indicator. To illustrate this empirically, we use RBs for adequate social participation in Belgium which have been constructed for the first time in 2008 and have been regularly updated since then. Through a combination of hypothetical household simulations of essential out-of-pocket costs and designated taxbenefits for families living on different minimum income schemes, we are able to assess the adequacy of minimum income protection for a range of household types over the period 2008-2017. The paper shows that, the proposed indicator is a useful policy tool for both ex-ante and ex-post evaluations of the adequacy of social policy measures in light of the social protection and inclusion rights included in the Pillar.

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Section: Introductionmentioning

confidence: 99%

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2019

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“…We do so because, as Babones, Moussa and Suter (2016) observed in a rather influential article, the poverty thresholds or the poverty lines that are customarily used to assess how many people in a country live above or below such line have little to no conceptual basis and are rather inappropriate to assess poverty as 'relative deprivation' which is what Kinyondo and Pelizzo (2018) detected in the Tanzanian case. Hence, to avoid the methodological problems and shortcoming that Babones, Moussa and Suter (2016) denounced in their study, we decided to rely on lived poverty which is measured on the basis of whether and how often respondents go, in the course of one year, without food, water, medical care, cooking fuel and cash income. By using the data collected by Afrobarometer in Tanzania, we are able to create one set of indicators that capture the extension of lived poverty, that is what percentage of the respondents, experiences deprivation, but we also develop a series of indicators that capture the severity of lived poverty, that is how frequently respondents experience this problem.…”

Section: Introductionmentioning

confidence: 99%

Poverty and Development in Tanzania

et al. 2018

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The paper investigates the relationship between development, as measured by the GNI per capita and lived poverty in Tanzania which is measured on the basis of whether and how often respondents go, in the course of one year, without food, water, medical care, cooking fuel and cash income. By using the data collected by Afrobarometer in Tanzania, we are able to create one set of indicators that capture the extension of lived poverty, that is what percentage of the respondents, experiences deprivation, but we also develop a series of indicators that capture the severity of lived poverty, that is how frequently respondents experience this problem. Our statistical analyses reveal that while Tanzanian progress along the developmental path did not have a significant impact on the extension of lived poverty, it made a large and significant contribution to reduce its severity.

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“…Alternatively, one could argue that the lack of three items might be too high of a threshold to correctly identify vulnerabilities (Babones et al, 2015). Since this is not a homogeneous result among all years and groups, we leave this discussion for further research and we acknowledge that there are more people at risk of poverty than of material deprivation given our choice of indicators.…”

Section: Descriptive Statisticsmentioning

confidence: 96%

“…Moreover, this approach allows adjusting for the socio-economic context and thus the threshold to vary, which would be more accurate as not every country is similar in terms of socio-economic and structural contexts (Babones et al 2015).…”

Section: Povertymentioning

confidence: 99%

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Living on the Edge. Analyzing Economic Vulnerability and Quality of Life in Switzerland in the Early 2000's

Simona¹

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This thesis focuses on the concept of economic vulnerability and mainly on the analysis of a group, or a specific socio-economic position of the population, people vulnerable to poverty. Indeed, scientific literature has extensively investigated people in poverty or those with the highest concentration of wealth, but those who suffer to maintain decent living conditions, without any help from the welfare state, are often overlooked by research. This thesis analyzes the effects of this socio-economic position on two concepts: firstly, the subjective well-being and secondly, the quality of life in times of crisis.The first part of this thesis explores the issue of identifying those who are vulnerable to poverty. The emphasis is placed on the various options available to researchers to identify, using a quantitative approach, people vulnerable to poverty and thus, to better target the group that may face difficulties in maintaining decent living conditions. The first article of the thesis compares four indicators which are poverty, precariousness, deprivation and vulnerability in order to show the different possibilities that exist to identify people belonging to this specific group.The second part of the thesis combines two approaches that have never been jointly studied, the vulnerability to poverty and the subjective well-being. Indeed, the objective is to assess whether the subjective well-being of our interest group is different or similar to those defined as being in poverty and who are then recognized as such by the society as a whole.Finally, in the third and last part of this thesis, our attention shifts towards a set of vulnerable groups defined as such by either the scientific community or public policies, and we assess the impacts of the economic crises of the early 2000s on four quality of life indicators. This third article combines subjective and objective indicators and gives a clear overview on how vulnerable groups in Switzerland fared during the last two consecutive economic downturns.The database used for the analyses in this thesis is the Swiss Household Panel (SHP). This longitudinal database started in 2000 and contains rich information, both objective and subjective, about households living in Switzerland. Each of the three articles follows its own methodology. The first article compares four indicators and their methodological construction, in the perspective to use them to identify people vulnerable to poverty. The second paper first uses the vulnerability to poverty method to define the analysis group and then, the subjective well-being is estimated using a linear regression model (OLS). Finally, the third paper uses different models (binary regressions, multilevel models, fixed-effects and random effects) to estimate which vulnerable groups were affected by economic crises, but also whether there is a recurrent effect following these two crises close in time, on four quality of life indicators (two subjective and two objective).The results show that there are different possibilities for i...

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A Poisson-Based Framework for Setting Poverty Thresholds Using Indicator Lists

Cited by 9 publications

References 20 publications

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Poverty and Development in Tanzania

Living on the Edge. Analyzing Economic Vulnerability and Quality of Life in Switzerland in the Early 2000's

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