Measuring the impact of vulnerability on the number of poor: a new methodology with empirical illustrations

Chakravarty, Satya R.; Chattopadhyay, Nachiketa; Silber, Jacques; Wan, Guanghua

doi:10.4337/9781785369155.00011

Cited by 3 publications

(3 citation statements)

References 24 publications

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“…13. For a recent study of vulnerability, see Chakravarty et al 2015. 14. There are, for example, issues concerned with the comparability of scales across individuals (see Ravallion, Himelein, and Beegle 2016).…”

Section: Discussionmentioning

confidence: 99%

Monitoring Global Poverty

2020

Poverty and Shared Prosperity 2020: Reversals of Fortune

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Section: Discussionmentioning

confidence: 99%

Monitoring Global Poverty

2020

Poverty and Shared Prosperity 2020: Reversals of Fortune

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“…In such circumstances it may not be unreasonable to identify those rich individuals as not vulnerable to poverty. To identify the vulnerable, recent studies such as Dang and Lanjouw (2017), Chakravarty et al (2016) and de la Fuente et al ( 2015) have considered a vulnerability line, which is similar in concept to a poverty line. However, this approach operationalises the vulnerability line using ex post data, where we have to know the future income to set the vulnerability line, and thus ignores the ex ante nature of vulnerability.…”

Section: Identification Of the Vulnerablementioning

confidence: 99%

Measuring vulnerability to poverty: a unified framework

Dutta¹,

Mishra²

2023

Research Handbook on Measuring Poverty and Deprivation

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In this paper, we provide a unified analytical framework to measure vulnerability to poverty. We conceptualise vulnerability as arising out of different shocks which makes it more intuitive and appealing. Our focus is on understanding impacts of shocks on income, both at the individual and societal level. We will mainly discuss conceptual issues around measuring vulnerability along with suggestions for empirical methods to estimate the level of vulnerability. We combine the literature on poverty measurement and decision making under uncertainty to provide a novel way of understanding and measuring vulnerability to poverty. Specifically, we employ a three step process where we first identify the vulnerable, second we calculate the vulnerability of each individual in the society and finally aggregate the vulnerability across all individuals to estimate the societal vulnerability. Our proposals also provide a broad theoretical framework to assess vulnerability under different information constraints.

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“…The successful identification of relatively poor households in academics is still in its early stages and follows two basic paradigms, one from a welfare viewpoint, establishing a percentage of median or average income as the relative poverty level, and the other from a socioeconomic perspective (Ravallion and Chen, 2011;Chakravarty et al, 2016). The viability perspective of poverty is another relative poverty identification paradigm, which contends that relative poverty criteria should detect whether persons lack the potential to survive and socially integrate (Bourguignon and Atkinson, 2000).…”

Section: Variables and Measuresmentioning

confidence: 99%

Household financial literacy and relative poverty: An analysis of the psychology of poverty and market participation

2022

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Financial literacy is the significant human capital factor affecting people's ability to obtain financial services. Evaluating the relationship between financial literacy and relative poverty is of great significance to poverty reduction. This study investigated the impacts of financial literacy on relative poverty from the perspective of poverty psychology and market participation using data from the 2017, 2019 China Household Finance Survey (CHFS). The empirical findings showed that financial literacy can alleviate relative household poverty through household participation in entrepreneurial activities, commercial insurance participation and the choice of lending channels. Financial literacy has significant poverty reduction effect on households of continuous operation, reduces the likelihood of exiting operation. Further discussion showed that the poverty reduction effect of financial literacy is more pronounced among households with higher levels of financial literacy, under the age of sixty, low levels of indebtedness and in the eastern region. Our study provides empirical evidence for encouraging market participation and promoting financial literacy and provide valuable recommendations for the policymaker to improve poverty reduction effect in the developing country context.

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Measuring the impact of vulnerability on the number of poor: a new methodology with empirical illustrations

Cited by 3 publications

References 24 publications

Monitoring Global Poverty

Monitoring Global Poverty

Measuring vulnerability to poverty: a unified framework

Household financial literacy and relative poverty: An analysis of the psychology of poverty and market participation

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