Household Budgets as a Social Indicator of Poverty and Inequality in South Africa

In the absence of a universally accepted method of calculating poverty, household expenditure can be used to provide an indication of inequality of wealth and serve as an indicator of poverty. Household expenditure comprises expenditure of private households on goods and services, irrespective of their durability. The portion of household budgets allocated to different types of goods and services provides an indication of the material standard of living of a population. The article discusses different definitions of poverty and compares the state of poverty according to these definitions in selected countries. This is followed by an analysis of South Africa’s economic position in the world and a comparison of the household budgets and demographic profile of South African households that fall into different income groups in order to identify the differences between the poorest and the wealthiest households in South Africa. Income inequality in South Africa is further elucidated by means of the Gini coefficient. A comparison is also made between the household budgets of the poorest households with the minimum financial living level requirements in South Africa to maintain their health and have acceptable standards of hygiene and sufficient clothing for their needs.     

Evaluating the Link Between Perceived Income Adequacy and Financial Satisfaction: A Resource Deficit Hypothesis Approach

Data from an economically and racially diverse sample (N = 258) was used to determine (a) if an association between objectively measured income and perceived income adequacy exists, (b) how well individuals assess the adequacy of their income, and (c) if a bias exists, can these estimates be used to describe a person’s overall level of financial satisfaction? Duesenberry’s (Income, saving, and the theory of consumer behavior. Harvard University Press, Cambridge, 1949) relative income hypothesis and Kyrk’s (The family in the American economy. University of Chicago Press, Chicago, 1953) resource deficit hypothesis were adopted for use as the conceptual framework for this study. A positive but modest association between objective and perceived income adequacy was noted. It was also found that individuals do not do a particularly good job of accurately assessing their income adequacy. Finally, perceived income adequacy estimation bias was found to be associated with financial satisfaction. Those who perceived their income to be deficient were less satisfied financially. Policy and practitioner implications from the study are discussed as a means for improving financial satisfaction at the individual and household level.     

Household commodity demand and demographics in the Netherlands: a microeconometric analysis

We investigate the effects of demographics, household expenditure and female employment on the allocation of household expenditure to consumer goods. For this purpose we estimate an Almost Ideal Demand System based on Dutch micro data. We find that interactions between household expenditure and demographics are of significant importance in explaining the allocation to consumer goods. As a consequence, consumer goods such as housing and clothing change with demographic characteristics from luxuries to necessities. Furthermore, this implies that budget and price-elasticities cannot be consistently estimated from aggregated data and that equivalence scales are not identified from budget survey data alone. We reject weak separability of consumer goods from female employment. A couple with an employed spouse has a smaller budget share for housing and personal care and a larger budget share for education, recreation and transport and clothing compared to a couple with a non-employed spouse. Received: 12 September 1997/Accepted: 27 February 1998     

Labor Migration,Remittances and Economic Well-being of Households in the Philippines

Labor Migration has long been viewed as a strategy adopted by the household unit to allocate family resources rationally to increase the flows of income and to raise family standard of living. The research reported here examines the extent to which remittances sent by Filipino overseas workers increase the income and standard of living of households in the Philippines. Data for the analysis were obtained from a representative sample of 2,388 households drawn in 1999–2000 from four major “labor sending” areas in the Philippines. The analysis compares households with and without overseas workers to estimate the contribution of remittances to household income and to household standard of living (measured once by an ‘objective’ indicator and once by a ‘subjective’ assessment). The data reveal that due to remittances the income of households with overseas labor migrants is considerably higher than the income of households without overseas workers. The data also reveal that remittances are used mostly for consumption purposes (e.g. purchase of food, clothing, education, and goods) and that most of the difference in standard of living (whether measured on the ‘objective’ or the ‘subjective’ scale) between households with and without overseas workers are attributed to remittances. The implications of labor migration and the policy that encourages and supports labor migration for the Filipino society are evaluated and discussed.

When Twenty-Four Hours is not Enough: Time Poverty of Working Parents

Individuals can be money poor, time poor or both. While income is the most used indicator of poverty, broader indexes including non-monetary aspects of deprivation have been proposed and measured. As one such measure, our study focuses on the element of deprivation arising from the time deficit of many working people. The usual poverty threshold is calculated as the amount of income to buy the minimum required goods and services from the market. This minimum required purchase is greater for these people since they have less time than the average person to produce some goods and services for themselves at home. So, they need money to buy these in the market in order to maintain the same consumption. The income standard must be supplemented to adequately measure actual poverty. Time use data make it possible to establish time requirements and time availability and provide a measure of time poverty. Using Canadian GSS 1998 data, and building on the work of Vickery (1977, ‚The time poor: A new look at poverty’, The Journal of Human Resources 12(1), pp. 27-48) and of Douthitt (1993, ‚The inclusion of time availability in Canadian poverty measures’, Time-Use Methodology: Toward Consensus (ISTAT, Roma), pp. 83–91), and our own previous study, we estimate time-adjusted poverty thresholds and rates for single and dual parent Canadian families. As expected, we have found high incidence of time deficit among the employed single parents with children. We make a case for the acceptance of a redefined poverty standard for such time-deprived groups.     

The Rise and Prominence of Skip-Generation Households in Lower- and Middle-Income Countries

Investigations into changes in household formations across lower- and middle-income countries (LMICs) rarely consider skip-generation households. Yet, demographic, social, and economic forces increasingly encourage skip-generation household formations. We examine trends and changes in the prevalence of skip-generation households from 1990 to 2016, examining households, adults aged 60+, and children under 15, across 49 countries using household roster data from Demographic and Health Surveys. Analysis takes place in stages, first describing trends in skip-generation households across countries and next providing explanatory analyses using multilevel modeling to assess whether, and the degree to which, country-level characteristics like AIDS mortality and female labor force participation explain trends in the probability that a household is, or that an individual resides in, a skip-generation household. Results indicate extensive increases in skip-generation households in many LMICs, although there is also variation. The increases and variations are not well-explained by the country-level characteristics in our models, suggesting other underlying reasons for the rise and prominence of skip-generation households across LMICs.     

Poverty Is Low Consumption and Low Wealth,Not Just Low Income

The purpose of this paper is to suggest an improved measure of financial poverty, based on household consumption and wealth as well as income. Data come from the Household, Income and Labour Dynamics Australia (HILDA) Survey, which appears to be the first national socio-economic panel survey to provide longitudinal data on all three measures of household economic well-being. National measures of poverty in Australia and other Western countries are usually based only on low income. But this is conceptually incorrect; the measures lack validity. To be poor is to have a low material standard of living—involuntarily. So measures of poverty should also take account of household consumption and wealth. If a household has an adequate current level of consumption, it should not be classified as poor right now, even if its current income is low. Similarly, if it has substantial wealth (net worth), it should not be viewed as poor because it could draw down on wealth to boost current consumption. The invalidity of income-based measures has long been recognised in principle (Ringen 1987, The possibility of politics. Oxford: Clarendon Press). In practical terms, the problem is to combine measures of wealth and income, and especially consumption, in the same survey. In the 2005 HILDA Survey a battery of household expenditure items was included which, benchmarked against the Australian Bureau of Statistics’ Household Expenditure Survey for 2003–04, appeared to provide valid measurement of 53.4% of total household expenditure. These well measured items correlated 0.76 with total expenditure and, in combination with standard demographic variables, accounted for 78.3% of the variance in the total. This paper uses 2005–06 HILDA data to construct revised measures of financial poverty. The value of these measures for public policy and research purposes is illustrated. In particular, the new measures give much lower estimates of poverty than income-based measures. They can also be used to predict which households are at risk of future poverty.

From the Replacement Rate to the Synthetic Indicator: A Global and Gender Measure of Pension Adequacy in the European Union

To measure the adequacy of pension systems in the world, one of the most commonly used indicators is the Replacement Rate. Our work is based on the statement that this indicator is imperfect itself to measure adequacy because it does not collect the multiple dimensions that it involves while being a static measurement. Consequently and based on the data provided by “The 2015 Pension Adequacy Report: current and future income adequacy in old age in the European Union” of the European Commission, in this paper we select a set of variables that are considered representative to measure the adequacy of pension systems from a dynamic and multidimensional perspective, and based on them, a synthetic adequacy indicator is developed. This indicator aims to compare European pension systems from the adequacy objective and to carry out continuous monitoring of the effects that the reform processes may have on the adequacy of pensions. The analysis is completed with the calculation of a gender indicator on pension adequacy for the European Union (EU-28) which identifies the still existing gap between men and women.     

Household Assets,the Role of Government Assistance,and Depression Among Low-Income Families in Shanghai

As China’s economy is rapidly changing from a planned to a capitalist economy, many families find themselves financially struggling. In some cases, conflicting values and attitudes may contribute to mental health challenges such as depression that would lead to further feelings of helplessness and immobilization. Using a random sample of 1006 low-income households from Pudong District of Shanghai, China, this study aims to examine the relationships between household assets, beliefs about government as the primary way to improve economic circumstances and self-reported depressive symptoms. In addition, this study investigates the mediation effects of beliefs that government is the best change agent for improved life circumstances on the relationship between household assets and depression. We found those who indicated that government was the main means for attaining a better life had significantly higher depression levels whereas higher numbers of household assets were associated with lower depression levels. We also found that viewing government as the most important change agent only partially mediated the relationship between household assets and depression (p?<?.001). Findings from this study support anti-poverty policies and social work related practice initiatives aimed at assisting low income families in China, in particular the need to address psychological as well as economic needs.

     

How does household production affect measured income inequality?

Theory predicts that lower-income households will produce more goods at home. Thus extended income, which includes household production, should be more equally distributed than money income. Previous studies have confirmed the greater equality of extended income and speculated that the result is due to the weak correlation between money income and household production. We also confirm this result and identify the true reason. We show that the weak correlation cannot be the explanation and that virtually all of the difference in measured inequality between the two measures is due to the addition of a large constant—the average value of household production—to money income.     

Income sufficiency v. poverty Results from the United States and The Netherlands

The purpose of this paper is to further the understanding of subjective measures used to assess poverty and to add to the literature on poverty measurement methodology. In particular, the paper focuses on the minimum income question (MIQ) first proposed by Goedhart and colleagues (1977). Data from the U.S. Consumer Expenditure Survey and from a Dutch newspaper survey are used. The primary contribution of the paper is the inclusion of household expenditures as additional explanatory variables of minimally necessary income. Significant differences between the coefficients of several categories of expenditures, particularly for leisure, appear to reveal differences in the interpretation of the minimum income question by respondents. Thus, we question the underlying assumption of the MIQ that everyone adheres the same welfare meaning to the phrase “minimally necessary income,” and conclude that the resulting thresholds should not be used as to measure poverty before further research has been carried out to explore what respondents are thinking when they answer questions such as the MIQ.     

Feminine Purity and Masculine Revenge-Seeking In Taken (2008)

The 2008 film Taken depicts the murderous rampage of an ex-CIA agent seeking to recover his teenage daughter from foreign sex traffickers. I argue that Taken articulates a demand for a white male protector to serve as both guardian and avenger of white women's “purity” against the purportedly violent and sexual impulses of third world men. A neocolonial narrative retold through film, Taken infers that the protection of white feminine purity legitimates both male conquest abroad and overbearing protection of young women at home. I contend that popular films such as Taken are a part of the broader cultural system of representing social reality that elicit popular adherence to common-sense myths of white masculinity, feminine purity, and Orientalism.     

Does Culture Make a Better Citizen? Exploring the Relationship Between Cultural and Civic Participation in Italy

In the last decades, policy discussions have increasingly considered participation in arts and cultural activities as a vehicle to reach broader social policy goals, such as social inclusion or active citizenship. However, convincing empirical evidence on the social impacts of arts and culture is still scarce. In particular, little attention has been given to the impact that cultural participation may have on individuals’ engagement in civil society, especially in Europe. In order to address this lack of evidence, this paper explores the connection between cultural participation and civic participation in Italy using Likert-scale data collected in the ISTAT “Aspetti della Vita Quotidiana” Survey (2014). To do so, two composite indicators—the participation in cultural life indicator and the participation in civic life indicator—have been built using an approach based on partial order theory and the concept of Average Rank. The effect of cultural participation on civic engagement has been estimated using a quantile regression model which controls for potentially cofounding factors such as education, income, age and gender. Results do confirm that participation in arts and cultural activities is highly correlated with participation in civic life. It is particularly worth noticing that at higher levels of civic participation, cultural participation has a positive and strong effect on civic engagement of people having a low educational level.

     

Prevalence of Low Physical Activity and its Relation to Social Environment in Deprived Areas in the London Borough of Redbridge

Achieving adequate levels of physical activity (PA) is important to maintain health and prevent chronic disease. The costs of inadequate physical activity to the NHS have been estimated at over a billion pounds annually. While socio-demographic characteristics such as age, sex and ethnicity have been reported to be associated with different levels of PA, there is evidence that people??s social environments may also be important in encouraging a physically active lifestyle. The objective of this paper is to describe associations between the social environment and physical activity among the poorer communities in an outer London Borough, when other socio-demographic factors are controlled for. A household survey was carried out in six poorer neighbourhoods in Redbridge in 2008 as part of a wider health needs assessment. The questionnaire included questions allowing estimation of levels of physical activity as well as extent of social environment [social network score (SNS) and social support score (SSS)]. A random sample of households was taken and a total of 799 completed responses from over 16 year old were obtained. The association between physical activity and the social environment controlling for socio-demographic characteristics was estimated using a logistic nested model. Higher SNS was significantly associated with younger age, Black ethnicity, higher education level, higher household income and higher levels of PA in bivariate analyses. Higher SSS was positively associated with Indian ethnicity, higher household income and area of residence. In multivariate analyses higher levels of PA were significantly associated with wider social networks and stronger social support, educational level and marital status. Despite its limitations, our findings confirm that the relationship between low physical activity and weak social networks and low social support, observed in general population studies, also occurs in deprived communities in London. The relationship merits further exploration given the limited evidence on the effectiveness of interventions to promote physical activity.     

Does regional variation affect ecological mortality research? An examination of mortality, income inequality and health infrastructure in the Mississippi Delta

Mortality research has often focused on individual-level, socioeconomic, and demographic factors indicating health outcomes. Consistent with a recent trend in the public health field, this research examines mortality at the aggregate, contextual level. Based on Wilkinson’s relative income hypothesis, specifically being manifest through an underinvestment in social goods including health infrastructure, the focus of this study is a regional examination in the effects of income inequality on mortality at the county level. Health infrastructure is included as a mediating variable in the relationship between income inequality and mortality, relating back to Wilkinson’s work. Unlike previous research, regional differences in this relationship are examined to identify variation at the county level in health outcomes. The Mississippi Delta is an adequate test bed to examine the relationship between these variables based on its socioeconomic, demographic, and high inequality characteristics. It is hypothesized that Delta-designated counties within the three-state Delta region distinguish a significant positive relationship between income inequality and mortality, that this relationship is stronger than in non-Delta classified counties, and that health infrastructure significantly mediates the relationship between income inequality and mortality.     

The French Regions and Their Social Health

In this article, a new indicator designed to capture the multidimensionality of the social health of the French regions is put to the test. Drawing on regional data for 2004, this indicator of social health (ISH) sheds new light on the social performance of the French regions. The worst performers are the highly urbanised regions, whereas others, such as Limousin, turn out to perform well in social terms. Two or three regions remain stuck at the bottom of the table regardless of the indicator used. Nord-Pas-de-Calais and Languedoc-Roussillon, which bring up the rear in terms of gross disposable income (GDI) and gross domestic product (GDP) per capita, also record very mediocre scores for social health as measured by our ISH.

Timely Indicators for Inequality and Poverty Using the Italian Labour Force Survey

Income distribution measures obtained from standard household income surveys are usually published with a significant delay, of about 2 years. In this paper we propose a methodology for obtaining timelier indicators using the Italian Labour Force Survey (ILFS), a database which collects detailed information not only on individuals’ labour market status, but also on their households and wages. We develop a framework to estimate household labour income and we use it to construct distributional indicators that are available 1 year and half before the standard measures. After discussing the limitations of our approach, we show that the ILFS-based indicators closely track those calculated on standard household income surveys. The suggested indicators are not meant to substitute standard income measures but can offer up-to-date information, with the aim of better monitoring the distributional impact of changing macroeconomic conditions.

     

Socioeconomic Classification of the Working-Age Brazilian Population: A Joint Latent Class Analysis Using Social Class and Asset-Based Perspectives

This paper presents and applies a methodology of socioeconomic classification that integrates asset- and social class approaches. We employ data from the 2013 Brazilian National Household Survey and use latent class analysis to identify clusters and classify the working population. With regard to social class the Brazilian occupations are classified based on the European Socioeconomic Classification (ESeC) schema and an indicator of employment status. As for household wealth, we use the items related to household condition, ownership of durable goods and access to public services with the highest discriminatory power. We also make use of variables that account for the Brazilian spatial and socio-demographic heterogeneity. We found four clusters which we term latent socioeconomic stratum (LSeS). When compared we found an ordered pattern from the best-off LSeS (1) to the worst-off (4) with respect to household wealth and ESeC classes. Nevertheless, although the class composition of each LSeS reveals a distinct concentration of specific ESeC classes, all classes are present in each LSeS. Controlling for social class, differences in household wealth are more marked between LSeS than between social classes within the same LSeS. Hence, the methodology unveils the latent socioeconomic strata, reveals a class schema for each stratum and points out potential stratum fractions within them. The results were validated using variables external to the model, namely household food security status and years of schooling. The external validation revealed the same ordered pattern and the presence of stratum fractions.     

Did the Decline in Social Connections Depress Americans’ Happiness?

During the last 30 years US citizens experienced, on average, a decline in reported happiness, social connections, and confidence in institutions. We show that a remarkable portion of the decrease in happiness is predicted by the decline in social connections and confidence in institutions. We carry out our investigation in three steps. First, we run a happiness regression that includes various indicators of social connections and confidence in institutions, alongside with own income, reference income, and the usual socio-demographic controls. We find that indicators of social connections and confidence in institutions are positively and significantly correlated with happiness. Second, we investigate the evolution of social connections and confidence in institutions over time, finding that they generally show a declining trend. Third, we calculate the variation in happiness over time as predicted by each of its statistically significant correlates, finding that the decrease in happiness is mainly predicted by the decline in social connections and by the growth in reference income. More precisely, the sum of the negative changes in happiness predicted by the reduction in social connections and the increase in reference income more than offsets the positive change predicted by the growth of household income. Also, the reduction in happiness predicted by the decline in confidence in institutions is non-negligible, although substantially smaller than the one predicted by either social connections or reference income.     

The polarizing effect of economic inequality on class identification: Evidence from 44 countries

Using cumulative logit mixed models fitted to World Values Survey data from 44 countries, we explore the impact of economic conditions – both at the individual-level and the national-level – on social class identification. Consistent with previous research, we find a positive relationship between household income and class identification in all countries that we explore, though this relationship varies substantially. Also corroborating previous research, we find that ‘low’ class identifications are more likely in poor countries than in rich ones. However, in contrast to previous research that has neglected the role of inequality, our results indicate that the effect of economic development diminishes if income inequality is considered in the same model. We further demonstrate that income inequality has an important polarizing effect on class identification. Specifically, the relationship between household income and class identity tends to be strongest in countries with a high level of income inequality.