Arbeitspapier

Bottom incomes and the measurement of poverty and inequality

Incomes in surveys suffer from various measurement problems, most notably in the tails of their distributions. We study the prevalence of negative and zero incomes, and their implications for inequality and poverty measurement relying on 57 harmonized surveys covering 12 countries over the period 1995-2016. The paper explains the composition and sources of negative and zero incomes and assesses the distributional impacts of alternative correction methods on poverty and inequality measures. It finds that the main source of negative disposable incomes is negative self-employment income, and that high tax, social security withholdings and high self-paid social-security contributions account for negative incomes in some countries. Using detailed information on expenditure, we conclude that households with negative incomes are typically as well off as, or even better, than other households in terms of material wellbeing. By contrast, zero-income households are found to be materially deprived. Adjusting poverty and inequality measures for these findings can alter these measures significantly.

Sprache
Englisch

Erschienen in
Series: GLO Discussion Paper ; No. 519

Klassifikation
Wirtschaft
Personal Income, Wealth, and Their Distributions
Measurement and Analysis of Poverty
Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: Asia including Middle East
Thema
bottom incomes
income inequality
poverty
self-employment
Mediterranean
Middle East
Pareto
random forest

Ereignis
Geistige Schöpfung
(wer)
Hlasny, Vladimir
Ceriani, Lidia
Verme, Paolo
Ereignis
Veröffentlichung
(wer)
Global Labor Organization (GLO)
(wo)
Essen
(wann)
2020

Handle
Letzte Aktualisierung
20.09.2024, 08:23 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Hlasny, Vladimir
  • Ceriani, Lidia
  • Verme, Paolo
  • Global Labor Organization (GLO)

Entstanden

  • 2020

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