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¹2 (18) 2012

Demography and social economy, 2012, 2(18):132-141
doi: https://doi.org/10.15407/dse2012.02.132

NICHOLAS T. LONGFORD
SNTL and Universitat Pompeu Fabra, Barcelona, Spain
CATIA NICODEMO
Universitat Autonoma de Barcelona, Barcelona, Spain, and IZA Bonn, Germany

SOME ALTERNATIVES TO THE POVERTY GAP FOR INTERNATIONAL COMPARISONS
Section: Poverty and social reproduction.
Language: English
Abstract: The mean poverty gap, defined as the country’s average shortfall of the (equivalised) household income with respect to a set threshold, is generally regarded as an important measure of monetary poverty. We show that it is not suitable for international comparisons and propose two related alternatives, one based on the log-transformation of income. The methods are applied to the cross-sectional component of the EU-SILC database from 2007.
Key words: equivalised household income; EU-SILC database; poverty gap; sampling weights.
References:

1. Atkinson, T., Cantillon, B., Marlier, E., and Nolan, B. (2002). Social indicators. The EU and Social Inclu- sion. Oxford University Press, Oxford, UK.
https://doi.org/10.1093/0199253498.003.0002

2. Caminada, K., and Goudswaard, K. (2008). Effectiveness of Poverty Reduction in the EU: A Descriptive Analysis. Leiden University Department of Economics Research Memorandum 2008.06. Leiden, the Netherlands.
https://doi.org/10.2139/ssrn.1434669

3. Central Statistical Office (2005). EU Survey on Income and Living Conditions (EU- SILC). First results, 2003, Statistical Release. Dublin, Ireland.

4. Forster, M. F. (2005) The European social space revisited: Comparing poverty in the enlarged European Union. Journal of Comparative Policy Analysis: Research and Practice 7, 29-48.
https://doi.org/10.1080/13876980500084394

5. Lelkes, O., and Zolyomi E. (2008) Poverty Across Europe: The Latest evidence using the EU-SILC survey. European Centre for Social Welfare Policy and Research. Vienna Austria.

6. Longford, N. T., and Nicodemo, C. (2009). A sensitivity analysis of poverty definitions. IRISS Working Paper Series 2009-15, CEPS/INSTEAD, Differdange, Luxembourg.

7. Maquet-Engsted, I., and Stanton, D. (2009). Income indicators in the EU's open method of coordination. Manuscript. European Commission, Brussels.

8. Saalvedra, B., Nolan, B., and Smeeding, T. (Eds.) (2009). The Oxford Handbook of Economic Inequality. Oxford University Press, Oxford, UK.

9. Saltelli, A., Tarantola, S., Campolongo, F., and Ratto, M. (2004). Sensitivity Analysis in Practice. A Guide to Assessing Scientific Models. Wiley and Sons, New York.



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