Shifting family definitions: The effect of cohabitation and other nonfamily household relationships on measures of poverty

The current official poverty measure compares income to needs within a family. Some have suggested including cohabiting couples as part of this family. Others have suggested that the household be used as the unit of analysis for poverty measurement. I explore issues involved in expanding the unit of analysis, including the stability of cohabiting and other nonfamily household relationships and the degree of resource sharing that takes place among different types of people within households. Instability in households with nonfamily members is not a serious problem for inferring poverty from cross-sectional studies. On the other hand, income from people in nonfamily household roles contributes slightly less to helping other household members avoid financial hardship, implying that nonfamily housemates have a greater tendency to keep income to themselves.     

Poverty,Inequality and Deprivation in South Africa: An Analysis of the 1993 SALDRU Survey

This paper analyses poverty and inequality in South Africa based on data from a comprehensive multi-purpose household survey undertaken in 1993 to provide baseline statistics on poverty and its determinants to the new government. The paper shows that South Africa has among the highest levels of income inequality in the world and compares poorly in most social indicators to countries with similar income levels. Much of the poverty in the country is a direct result of apartheid policies that denied equal access to education, employment, services, and resources to the black population of the country. As a result, poverty has a very strong racial dimension with poverty concentrated among the African population. In addition, poverty is much higher in rural areas, and particularly high in the former homelands. Poverty among female-headed households and among children is also higher than average. Moreover, poverty is closely related to poor education and lack of employment. The poor suffer from lack of access to education, quality health care, basic infrastructure, transport, are heavily indebted, have little access to productive resources, and are heavily dependent on remittances and social transfers, particularly social pensions and disability grants. The paper uses an income-based definition of poverty for most of the analysis. In addition, it develops a broad-based index of deprivation including income, employment, wealth, access to services, health, education, and perceptions of satisfaction as its components. While on average the two indicators correspond fairly closely, the income poverty measure misses a considerable number of people who are severely deprived in many of the non-income measures of well-being. This group of severely deprived not identified by the income poverty measure consists predominantly of Africans living in rural areas, concentrated particularly in the province of KwaZulu/Natal.     

Longitudinal Analysis of the Domains of Satisfaction Before and After Disability: Evidence from the German Socio-Economic Panel

The aim of this paper is to analyse the effect of the onset of disability on life satisfaction and five different domains of satisfaction (health, household income, housing, job, leisure) for German individuals. Particular attention is paid to examining whether individuals can adapt to disability over time before and after its onset in terms of satisfaction. Using longitudinal data from the German Socio-Economic Panel (GSOEP) for the period 1984?C2008, we estimate an innovative fixed-effects model on life satisfaction and each domain of satisfaction for working-age males (aged 21?C58), which allows us to estimate lag and lead effects and thus to test the anticipation and adaptation hypotheses. Although individual obtain complete adaptation to disability in terms of global life satisfaction (5?years after the onset), this adaptation is not complete in all domains of satisfaction. For example, despite the fact that the levels of health satisfaction drop as the individual becomes disabled, after the onset it increases but the levels are lower than those reached before the onset. In contrast, the adaptation is especially faster in the terms of leisure satisfaction (3?years after the onset), household income and housing satisfaction (5?years after the onset in both cases). Our results support the findings obtained in other psychological studies that conclude that the domain of disability extends far beyond health related concerns to encompass the person??s well-being definition of self and social position. Finally, these findings may help policy makers and government to promote social and economic measures and actions lead to increase the scores of global well-being and specific domains of satisfaction of this collective.     

Dynamics of Asset Poverty in South Korea

Studies of economic insecurity tend to focus on changes in incomes and transitions in and out of income poverty. Yet family economic conditions are shaped by more than just income. Levels of assets and wealth, and changes in these over time also play a role. To identify which groups of the poor have been structurally trapped in poverty over time, using the Korean Welfare Panel Study, we examined the dynamics of asset poverty from 2005 to 2014. We defined three asset poverty lines by operationalizing assets as resources for either future consumption or development. Findings show that asset poverty experience in a previous year significantly increased the probability to incur asset poverty by 5–12% for all analysis samples. In addition, the probability of incurring asset poverty decreased with home ownership, higher disposable income, and greater diversification of the household portfolio. Our findings suggest that the asset poor are likely to fall into structural and persistent poverty over time, and an asset-building approach is needed to improve the asset poverty status of households in South Korea.

     

老年残疾问题及其社会政策思考——基于第二次残疾人抽样调查广东数据分析

人口老龄化快速发展致使老年残疾人口快速增加,改变了残疾人口结构和残疾人社会保障与服务需求,老年残疾问题凸显为重要社会问题。本文利用第二次全国残疾人抽样调查数据。分析了老年残疾人的分布状况、生活状况、残疾状况、康复服务与需求状况,指出残疾老年人经济贫困而社会保障不足。本文从社会保障、社会服务、社会救助等层面提出了完善老年残疾人社会政策的若干建议。     

The Paradox of Children and Life Satisfaction

Empirical analyses of the determinants of life satisfaction routinely include the number of children as one of the socio demographic controls, without explicitly considering that, for a given household income, more children imply a lower level of income per family member. The variable “number of children” then often attracts a negative or insignificant coefficient. Using data from the German Socio Economic Panel 1984–2007 we confirm that the sign of the coefficient for the variable “number of children in the household” is negative when introducing household income without correction for the number of members in a life satisfaction regression. On the contrary, when we equivalise income with the most commonly adopted equivalence scales, so eliminating the monetary cost of raising children, the impact of the variable is positive and significant when a high level of economies of scale is assumed. Our results however lead us to reject slope homogeneity as we find strong differences by gender and region. In particular, the positive effect of children on life satisfaction is stronger for males and East Germans. We interpret these subsample split results as driven by heterogeneous opportunity costs and cultural traits.     

Measuring Change Over Time in Socio-economic Deprivation and Health in an Urban Context: The Case Study of Genoa

Poverty and disability are interrelated, but data that can disentangle to what extent one causes the other and vice versa is not available. However, data from Vietnam allows us to examine this interrelationship in a way not done previously. Using small area estimation techniques, we uncover three findings not yet found in the literature. First, disability prevalence rates vary significantly within a country even at the district level. Second, the poverty gap between people with and without disabilities also varies at the district level. And most importantly, the size of that gap lessens based on district characteristics that can be affected by policy. Districts with better health care and infrastructure, such as road and health services, show less of a link between disability and poverty, supporting the hypothesis that improvements in infrastructure and rehabilitation service can lessen the impact of disability on families with disabled members.     

Poverty in the Philippines: the impact of family size

The people of Asia are beginning to realize that lower fertility translates into increased family wealth and educational attainment. This is the message that population and development efforts have been focusing on. In the Philippines, the goal is to lower fertility with a strategy based on the assumption that increased capacity of the economy will support a growing population at a higher standard of living. In the Philippines, over 33% of the households have 7 or more family members, while 20% of urban and 27% of rural households have 4 or more. The risk of poverty associated with increased number of children are 44-50% for 1 child and 60-78% for those with 5. Households spend up to 10% of their total income to raise 1 child, 18% for 2, and 26% for 4 children. Because many families lack the resources to raise children the per child share drops dramatically with each child, a household with 4 children spends 25% less per child than does 1 with 2 children. Occupation also affects income as the highest poverty rates are among heads of household who are: laborers (60%) and agricultural workers (73%). The best solution is an integrated approach with increases in family planning, education, and agricultural reform.     

Do the Poor Really Feel Poor? Comparing Objective Poverty with Subjective Poverty in Pakistan

Social Indicators Research - The current literature on poverty focuses intensively on objective poverty, which is based on household income, household consumption, basic needs, calorie...     

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.

中国城乡弱相对贫困测算及时空演变：2012—2018

相对贫困的识别和测算是瞄准贫困人口和制定减贫政策的基础,但常用于识别相对贫困人口的比例收入法和测度相对贫困程度的FGT指数在理论基础、比例设定和贫困性质方面遭到质疑。采用基于社会融入成本理论的弱相对贫困人口识别方法,及与弱相对贫困线相适应的分层可加综合贫困指数,且考虑与现阶段我国绝对贫困线衔接性及国际标准的可比性,使用2012—2018年中国家庭追踪调查(CFPS)数据估计了中国城乡收入(消费)弱相对贫困线,并测算分析了中国城乡收入(消费)弱相对贫困程度及时空演变特征。研究表明,基于弱相对贫困线构造的综合贫困指数兼顾绝对贫困和相对贫困,可以避免传统FGT指数分别测度绝对贫困和相对贫困时动态变化趋势出现分歧的问题,可更为直观地综合评估经济增长和扶贫政策的减贫效应。无论城乡,尽管不平等导致相对贫困始终处于高位水平,但绝对贫困更大的下降幅度使得中国收入(消费)弱相对贫困程度仍呈稳健下降趋势。从社会融入成本角度出发,建议未来考虑住房成本和子女养育成本,分家庭类型进一步细化弱相对贫困标准。本研究有助于进一步分类瞄准弱相对贫困人口,监测弱相对贫困程度演变并综合评估减贫效应。     

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.     

Environmental security and labor migration in Nepal

Do changes in environmental security that result from declining access to forest resources shape labor migration in a context where household production and consumption are intimately dependent on natural resources? Using 1996 household data from the Chitwan Valley of Nepal, we examined if a decrease in access to firewood increased the likelihood of migration of individuals for work. The results of multinomial logistic regression showed that, environmental insecurity was a significant predictor for migration regardless of destination, domestic or international. Labor requirements for household maintenance also played an important role in the decision to migrate. Management of forest resources and poverty alleviation by providing firewood substitutes and economic opportunities at the local level is likely to change the labor migration flow, which could be an important issue for future research.     

Asset Impacts on Life Satisfaction in an Asset-Rich Country: Focusing on Older Adults in Singapore

Using a representative sample, this study examined the extent to which assets matter for life satisfaction among older adults in Singapore. Singapore is a particularly useful context to explore the relationship between life satisfaction and assets because almost all Singaporeans own their own house, regardless of income level. First, this study used a latent profile analysis to assess patterns of life satisfaction. Then, asset impacts on this pattern of life satisfaction were examined, while controlling for contextual and health factors. The study found that financial assets matter for life satisfaction of older adults in Singapore. In particular, older adults in both the moderate life satisfaction class (LSC) and the High LSC were likely to have higher financial assets. Comparatively, other economic indicators such as real assets, total debts, and monthly household income were not significantly related to life satisfaction of older adults in the Moderate and High LSC compared to the Low LSC. However, real assets and monthly household income were significant predictors distinguishing the Moderate LSC and the High LSC. Throughout the models, total debts were not considered as a significant predictor of life satisfaction differences. This paper concludes by providing several policy and practice implications.     

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.     

Satisfaction with Job and Income Among Older Individuals Across European Countries

Using data on individuals of age 50 and older from 11 European countries, we analyze two economic aspects of subjective well-being of older Europeans: satisfaction with household income, and job satisfaction. Both have been shown to contribute substantially to overall well-being (satisfaction with life or happiness). We use anchoring vignettes to correct for potential differences in response scales across countries. The results highlight a large variation in self-reported income satisfaction, which is partly explained by differences in response scales. When differences in response scales are eliminated, the cross-country differences are quite well in line with differences in an objective measure of purchasing power of household income. There are common features in the response scale differences in job satisfaction and income satisfaction. French respondents tend to be critical in both assessments, while Danish and Dutch respondents are always on the optimistic end of the spectrum. Moreover, correcting for response scale differences decreases the cross-country association between satisfaction with income and job satisfaction among workers.     

External Shocks,Household Consumption and Fertility in Indonesia

This paper examines the impact of idiosyncratic income shocks on household consumption, educational expenditure and fertility in Indonesia, and assesses whether the investment in human capital of children and fertility are used to smooth household consumption. Using four different kinds of self-reported economic hardships, our findings indicate that coping mechanisms are rather efficient for Indonesian households that perceive an economic hardship. Only in case of unemployment do we find a significant decrease in consumption spending and educational expenditure while fertility increases. These results indicate that households that perceive an unemployment shock use children as a means for smoothing consumption. Regarding the death of a household member or natural disaster we find that consumption per person even increases. These results are consistent with the argument that coping mechanisms even over-compensate the actual consumption loss due to an economic hardship. One important lesson from our findings is that different types of income shock may lead to different economic and demographic behavioral adjustments and therefore require specific targeted social insurance programs.     

Economic Theory and Subjective Well-being: Mexico

Several studies have been conducted on the topic of well-being. Most of them, however, have been done in industrialized countries where income is distributed relatively more equitatively and the population tends to be more homogeneous. This paper studies the relationship between subjective and economic well-being in Mexico, a country where the economic differences among the population are more clearly marked.

According to the economic definition of well-being, higher levels of income are associated with higher levels of well-being through greater levels of material consumption. Taking into consideration this definition, it is worth asking just how important income is for an individual's happiness?Existing studies in psychology have found a positive correlation between economic well-being (socioeconomic status) and subjective well-being (happiness). However, this positive relationship is weak and a large percentage of human happiness remains unexplained.

Although the mentioned studies make a good approximation of the existing relationship between income and happiness, the characteristics or specification of the function that generates the relationship between these two variables is often assumed to be linear and positive. The main objective of this paper is to investigate further the relationship between subjective and economic well-being. In this study different specifications and approaches are used to approximate the relationship between these variables.

An empirical analysis is made from the results of a survey conducted in two Mexican cities. The investigation studies the impact of demographic, social, and economic variables on subjective well-being in Mexico. Several hypotheses are tested to identify the relationship between household income and individual well-being. It is found that income does not have a strong influence on neither well-being nor on the probability of happiness. However, people tend to overstress the impact that additional income would have on their subjective well-being. This fact could explain the importance that people place on increasing their income level, and it could possibly explain the relative sense of dissatisfaction once a higher income level is achieved.

The relationship between income and the sense of basic need satisfaction is also explored. A main assumption in economic theory suggests the existence of a direct relationship between these variables; however, empirical results show this relationship to be extremely weak. Results indicate that subjective well-being is positively related to the sense of basic need satisfaction but not to income.

     

The Cost of Disability in China

We describe the degree to which household income is negatively associated with the prevalence of different types of disability (i.e., medical impairments) in China using data from the 2006 Second National Survey of Disabled Persons. We then calculate the extra costs of disability across different types of households and show how these costs differ by the type and severity of disability in both urban and rural areas. Finally, we use nationally representative panel data on persons with disabilities from 2007 to 2009 to examine the degree to which social security is reaching persons with different types and severity of disabilities in both urban and rural areas. We conclude that although the amount and coverage of social security for households with disabilities is increasing rapidly, it is still not enough to offset the income differential between households with and without disabled persons, especially when we account for the extra costs of disability.     

The National Work–Life Balance Index©: The European Case

More than 5 years since the outbreak of the global financial crisis, a flurry of evidence is emerging on the effects of the ensuing economic downturn on unemployment and poverty rates in rich countries, but less is known about cross-country differences in subjective assessments of the crisis and whether adults in households with children were affected to a greater extent. This paper investigates differences in the perceived impact of the economic crisis between adults in households with and without children in 17 European countries, using data from the Life in Transition Survey 2010 in a multilevel modelling framework. It also explores differences in the coping strategies that households adopted to deal with the decline in income or economic activity. Everything else being equal, perceptions of the crisis were more widespread in countries with higher rates of child poverty, lower economic growth and lower GDP per capita. Across countries, perceptions of the crisis closely trailed subjective indicators of financial difficulties from other international surveys conducted in 2010. Adults in households with children were more likely to report an impact of the crisis, with larger differences in countries with higher rates of monetary child poverty. Adults in households with children also adopted a greater variety of coping strategies than the rest, prioritizing expenditure on basic necessities, while cutting back on luxuries and holidays. Nevertheless, many still reported reduced consumption of staple foods as a result of economic difficulties.