Assessing Asset Indices

The use of asset indices in welfare analysis and poverty targeting is increasing, especially in cases in which data on expenditures are unavailable or hard to collect. We compare alternative approaches to welfare measurement. Our analysis shows that inferences about inequalities in education, health care use, fertility, and child mortality, as well as labor market outcomes, are quite robust to the economic status measure used. Different measures—most significantly per capita expenditures versus the class of asset indices—do not, however, yield identical household rankings. Two factors stand out in predicting the degree of congruence in rankings. First is the extent to which expenditures can be explained by observed household and community characteristics. Rankings are most similar in settings with small transitory shocks to expenditure or with little random measurement error in expenditure. Second is the extent to which expenditures are dominated by individually consumed goods, such as food. Asset indices are typically derived from indicators of goods that are effectively public at the household level, while expenditures are often dominated by food, an almost exclusively private good. In settings in which individually consumed goods are the main component of expenditures, asset indices and per capita consumption yield the least similar results.     

Estimates of Household Consumption Expenditure at Provincial Level in Italy by Using Small Area Estimation Methods: “Real” Comparisons Using Purchasing Power Parities

Household consumption expenditure represents a crucial measure to be used for assessing individuals’ material living conditions and well-being. Indeed, the analysis of household conditions can provide policy makers with a clear picture of the economic and social situation of the area in which they are operating. However, official sample surveys which are generally used for this purpose, such as the Household Budget Survey in Italy carried out by the National Institute of Statistics, do not allow for reliable disaggregated estimates thus hindering appropriate and effective planning and evaluation of political interventions at local level. By referring to the 2012 Italian Household Budget Survey, this paper aims at obtaining reliable provincial estimates of household consumption expenditure in Italy. We use Small Area Estimation methods and we adjust the estimates for spatial differences in price levels by computing and using sub-national Purchasing Power Parities, thus obtaining “real” estimates of consumption expenditure to be used for intra-national comparisons.     

On Italian Households’ Economic Inadequacy Using Quali-Quantitative Measures

Motivated by an interest in investigating factors associated with poverty risks in Italy, our study provides insight into the relationship between various socio-economic, demographic, and behavioural variables and a new measure of the economic inadequacy of households. We propose that a household is in a condition of economic inadequacy when it simultaneously has difficulty making ends meet and is in arrears with payments of commitments for more than 90 days. To analyse the determinants of economic inadequacy, we use cross-sectional microdata collected through a structured questionnaire from a 2012 survey of household income and wealth conducted by the Bank of Italy. The results of the analysis show that the probability of economic inadequacy for Italian households is higher when the household is located in regions in southern Italy, has a low equivalent income, registers a decrease in income compared with that of a normal year, has a low liquidity ratio, pays rent for the house of residence, is over-indebted, is indebted to friends and relatives, and has an unhappy and impatient household head. We also propose constructing a composite indicator at the regional level that combines the percentage of households in relative poverty, as measured by the Italian National Institute of Statistics, and the percentage of households that we identify as existing in a condition of economic inadequacy. The composite indicator allows us to take into account some aspects of household living conditions that are not included in the measure of relative poverty.     

Relative Income,Relative Assets,and Happiness in Urban China

Does more money always mean that people are happier with their lives? To test the social comparison hypothesis as applied to happiness, this study uses survey data from the 2002 Chinese Household Income Project to examine the association between household economic resources and happiness in urban China. Household economic resources are measured as both income and assets (e.g., net worth and net worth minus home equity). In addition, the analyses include measures of relative income and relative assets. Results of ordinary least square regression analysis show a positive association of absolute income with the happiness score whereas relative income is negatively associated with happiness. Although household assets are a significant and positive predictor of self-assessments of happiness, measures of relative household assets do not correlate with happiness. Study findings suggest the level of happiness among urban populations could be increased through policies that promote pro-poor growth and equal distribution of economic resources. In addition, introducing asset-building policies as supplements to other social assistance programs may promote happiness.     

A discussion of the effect of development of commodity economy on rural fertility trend in the countryside]

A long-term commodity economy in China, according to this report, will help to improve family planning and to decrease the population. The new economic reforms have brought a commodity economy to rural areas of China and the result is an improved level of productivity and a higher standard of living. At this stage in China's economic development, many couples want to have more than 1 child which they could not afford before. This poses a new problem for family planning objectives. As the economy has shifted from a partially self-contained economy to a commodities-based one, more rural inhabitants want more children for the following reasons: 1) the economic system in China is based on the production of individual households (since agriculture in China today is still carried out by manual laborers, the household productivity rate is determined by the number of laborers it can provide); 2) as rural inhabitants have a higher income than before, they are no longer worried about fines; 3) decentralization reduces the governments financial resources and it is unable to follow through with, e.g., promises of 1-child family incentives and bonuses, and welfare. As a result, families do not uphold the family planning objectives. Family planning will eventually overcome these problems, however, through promotion of family planning campaigns and as the commodity economy advances and becomes more thoroughly developed. The author states that China is currently in the midst of an economic transition period which, once over, will see a decrease in the overall population.     

Measuring inequality with asset indicators

This paper examines whether, in the absence of information on household income or consumption, data on household infrastructure, building materials, and ownership of certain durable assets can be used to measure inequality in living standards. Principal components analysis is used to obtain a relative measure of inequality, and a bootstrap prediction method is provided for use when auxiliary surveys are available. Mexican data is used to show that the inequality methods provided do provide reasonable proxies for inequalities in living standards. An application finds that after controlling for household income and demographics, school attendance of boys in Mexico is negatively related to state-level inequality.     

Sibling rivalry and the gender gap: evidence from child health outcomes in Ghana

When capital and labor markets are imperfect, choice sets narrow, and parents must choose how to ration available funds and time between their children. One consequence is that children become rivals for household resources. In economies with pro-male bias, such rivalries can yield gains to having relatively more sisters than brothers. Using a rich household survey from Ghana, we find that on average if children had all sisters (and no brothers) they would do roughly 25-40% better on measured health indicators than if they had all brothers (and no sisters). The effects are as large as typical quantity-quality trade-offs, and they do not differ significantly by gender. Received: 22 May 1996 / Accepted: 13 July 1998     

Paternal Incarceration and Support for Children in Fragile Families

High U.S. incarceration rates have motivated recent research on the negative effects of imprisonment on later employment, earnings, and family relationships. Because most men in jail and prison are fathers, a large number of children may be placed at considerable risk by policies of incarceration. This article examines one dimension of the economic risk faced by children of incarcerated fathers: the reduction in the financial support that they receive. We use a population-based sample of urban children to examine the effects of incarceration on this support. Both cross-sectional and longitudinal regressions indicate that formerly incarcerated men are less likely to contribute to their families, and those who do contribute provide significantly less. The negative effects of incarceration on fathers’ financial support are due not only to the low earnings of formerly incarcerated men but also to their increased likelihood to live apart from their children. Men contribute far less through child support (formal or informal) than they do when they share their earnings within their household, suggesting that the destabilizing effects of incarceration on family relationships place children at significant economic disadvantage.     

An analysis of the size of the family household and family structure in China]

Since 1949, great social and economic changes have taken place in China. The entire economic structure and social relations are no longer the way they used to be. These changes have also had a strong impact on the size of family households and family structure. Major changes are summarized as follows: (1) The size of the present family household has been greatly reduced from its earlier size. The main reason for this reduction in size is the change of the social system. Under the new social system, the natural population growth rate and family structure have shown the greatest change from the past. (2) The major change in family structure is that small families have replaced the traditional large families. Under the large family system, several generations may stay together as one household, and brothers do not divide the large family even after they are married. Under the small family system, a household is normally limited to the parents and their children. With the gradual disappearance of large families, small families are increasing rapidly. Some households with three generations living together are still in existence, and the young and the old may support each other in their daily life. Both in cities and in rural areas, the traditional custom of respecting one's old parents still exists. There must be a value and necessity for the existence of this particular kind of family structure.     

Family life course transitions and rural Household economy during China’s market reform

This article investigates the effect of family life course transitions on labor allocation strategies in rural Chinese households. We highlight three types of economic activity that involve reallocation of household labor oriented toward a more diversified, nonfarm rural economy: involvement in wage employment, household entrepreneurship, and/or multiple activities that span economic sectors. With the use of data from the China Health and Nutrition Survey (CHNS 1997, 2000, and 2004), our longitudinal analyses of rural household economic activity point to the significance of household demography, life course transitions, and local economic structures as factors facilitating household labor reallocation. First, as expected, a relatively youthful household structure is conducive to innovative economic behavior. Second, household entrances and exits are significant, but their impacts are not equal. Life events such as births, deaths, marriage, or leaving home for school or employment affect household economy in distinctive ways. Finally, the reallocations of household labor undertaken by households are shaped by local economic structures: in particular, the extent of village-level entrepreneurial activity, off-farm employment, and out-migration.     

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.

Poverty in Ireland in Comparative European Perspective

In this paper we seek to put Irish poverty rates in a comparative European context. We do so in a context whereby the Irish economic boom and EU enlargement have led to increasing reservations being expressed regarding rates deriving from the EU ‘at risk of poverty’ indicator. Our comparative analysis reports findings for both overall levels of poverty and variation by household reference person characteristics for this indicator and a consistent poverty measure for Ireland, the UK and five smaller European countries spanning a range of welfare regimes. Our findings demonstrate that the distinctiveness of Ireland’s situation lies not in the overall levels of poverty per se but in the very high penalties associated with being in a household where the household reference person is a lone parent or excluded from the labour market.     

Family planning promotes social and economic development of Dongguan County]

Examination of the effects of family planning indicates 6 major social and economic changes which it has brought about in Dongguan County, China. Peoples' views on family planning have changed: they no longer believe the old notion that "more children guarantee a better life" and have done away with the convention of early marriage and early childbearing. The number of children per household has dropped from an average of 5.9 in the early 1950s to its present average of 2.05. The situation of women has undergone important changes. In the past, women bore many children and few worked outside the household. Today, in the city of Guancheng, 7000 of the 10,000 workers in city-owned factories are women. A 3rd effect of population control is increased production output and a better standard of living. Since 1979 when economic reform began, 90% of the presents built new homes and 70% of the households bought high standard consumer goods. A 4th improvement has been found in the development of education: 99.7% of school-age children attend elementary schools and the rate of graduating students is 98.2%; 92% of preschool children are involved in preschool programs; and 67,000 young women attend various kinds of vocational schools. A more civilized life style and more harmonious family lives have found as a 5th result of family planning measures. Finally, there have also been improvements in welfare and public sanitation facilities. For example, more than 200 water plants have been built in the county and 41% of the population drinks water which meets sanitation standards. It is concluded that the beneficial results of population control reported in this study should be of interest to all those involved in the field of family planning.     

The Measurement of Non-economic Inequality in Well-Being Indices

This paper is a critical review of composite well-being indices that account for inequality. Many well-being indices build upon the idea that while income and wealth are important, they do not constitute a person’s actual quality of life. However, first of all, the analysis finds that while well-being indices aim to go “beyond GDP” and other primarily economic indicators, many of them, unfortunately, do not focus on inequality at all. Secondly, most indices which include inequality in their measurement, only account for economic inequality. Thirdly, the article finds that the most comprehensive wellbeing index in terms of inequality is the Inequality-adjusted Human Development Index which adjusts for economic, health and education inequality. This article finds that well-being indices should make further strides to ensure the capture of non-economic inequality in terms of education and health.     

Subjective Well-Being and Social Production Functions

Recent reviews of scientific work on subjective well-being (SWB) reveal disagreements in conceptualization, measurement, and explanation of the concept. We propose Social Production Function theory as a framework to resolve them. Social Production Function (SPF) theory integrates strengths of relevant psychological theories and economic consumer/household production theories, without their limitations (namely, tradeoffs between satisfaction of different needs are not in the first, and goals or needs are not in the second). SPF theory identifies two ultimate goals that all humans seek to optimize (physical well-being and social well-being) and five instrumental goals by which they are achieved (stimulation, comfort, status, behavioural confirmation, affection). The core notion of SPF theory is that people choose and substitute instrumental goals so as to optimize the production of their well-being, subject to constraints in available means of production. SPF theory guides research measurement and explanatory models, and it integrates features of contemporary subjective well-being theories.     

An attempt at evaluation of the economic and social factors [influencing] the Polish population's fertility formation

This analysis of economic determinants of fertility in Poland shows that couples' fertility decisions are negatively influenced by factors affecting family income. Social and demographic factors were found to be unrelated to fertility. 17 socioeconomic measures were grouped as those expressing the level of economic development and determining family income size, those reflecting the level of socioeconomic development and determining the level of children's education, and those characterizing the level of social development and determining the need for health care and social security. The level of actual fertility is modeled as a linear function of variables in a main components factor analysis. Average monthly pay in the national economy (37.6%), the sold industrial production per person (13.8%), and the global agricultural production per person (13.2%) account for 64.6% of the variance. Among the social factors, findings indicate that a higher feeling of security is related to lower fertility, but economic factors have a stronger influence. Voivodeships are grouped as having low levels of economic development (24), as having high educational levels (24), and as having low levels of social security (24). Voivodeships with low levels of economic development and high parity include all the grouped voivodeships with the exception of three. Low-security voivodeships showed mixed patterns of fertility. High-education voivodeships showed a weak correlation with high fertility. Only three voivodeships have low economic and security factors and high education factors, and only one voivodeship has high fertility. Of the three voivodeships with high security and economic factors and low education factors, all have low parity.     

Beyond household walls: the spatial structure of American extended kinship networks

ABSTRACT

How far do Americans live from their close and extended kin? The answer is likely to structure the types of social, instrumental, and financial support that they are able to provide to one another. Based on the Panel Study of Income Dynamics, kin pairs vary widely in odds of household co-residence, co-residence in the same administrative units, and inter-tract distances if they do not live in the same census tract. Multivariate regression tests show that family structure, educational attainment, and age are closely associated with kin proximity. Fixed-effects models demonstrate that family formation shapes spatial relations between kin.     

Can we study the family environment through census data? A comparison of households,dwellings, and domestic units in rural Mali

Are ‘statistical households’, as defined in national censuses, able to describe the family environment in Africa? Do they correspond to the family units that individuals identify with? To address this issue, we build on a follow-up survey in south-east Mali, which links national censuses with local censuses at the individual level (N?≈?28,000 census observations). Three cross-sectional snapshots of family arrangements are compared: households recorded in national censuses, and family economic units and residential units recorded by local censuses. The national census household data appear poorly suited to documenting family living arrangements. They do not account for family economic units or residential units, but are highly conditioned by a normative representation centred on the nuclear family. Therefore, they fail to describe the complexity and diversity of people’s living spaces, making particular types of living arrangements invisible and increasing the likelihood of omitting individuals who do not fit into a nuclear model.     

农民工入户意愿及其影响因素研究——基于2009年广东省农民工调查数据分析

本文运用logit统计模型,在广东省农民工入户政策的改革背景下,分析上层农民工群体的入户意愿及其影响因素。研究发现,入户意愿是农民工个体权利的合理化表达,其背后隐藏的是经济诉求、生活保障、权益表达等劳动力再生产的综合需求。是否拥有责任田、在本城市工作年限、是否有亲戚在工作地、对城市的归属感和生活的安定感是影响上层农民工入户意愿的主要因素,而受教育年限、收入和工作级别等因素对他们入户意愿的影响并不显著。     

Direct Valuation of Personal Care by Households

This paper valued the quantity of child, sick, and elderly care provided by households using a new, direct measure. Such measures add to the literature that estimates the size of the contribution of non-market work by household members, particularly women, and to literature about valuation of childcare. This production remains unvalued in standard national income accounts. Traditional attempts to quantify this care multiplied care-giver hours by a wage rate, a method that suffers from several drawbacks, including omitting the contributions of anything but labor, the inability to handle joint production, and the use of an arbitrary wage rate. This study avoided these problems by valuing the amount of care with its market price based on data from a small urban area. The mean value was $3,547 annually (97 percent of it childcare) for all sample households and $9,610 for those providing care. The results afforded evidence of scale economies in parental childcare and quantified care furnished by different kinds of providers.