FGT Old-Age Poverty Measures and the Mortality Paradox : Theory and Evidence
1
BETA -
Bureau d'Économie Théorique et Appliquée
2 CORE - Center of Operation Research and Econometrics [Louvain]
3 PSE - Paris School of Economics
4 CEPR - Center for Economic Policy Research
5 PJSE - Paris Jourdan Sciences Economiques
6 ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique
2 CORE - Center of Operation Research and Econometrics [Louvain]
3 PSE - Paris School of Economics
4 CEPR - Center for Economic Policy Research
5 PJSE - Paris Jourdan Sciences Economiques
6 ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique
Grégory Ponthière
- Fonction : Auteur
- PersonId : 1129355
- ORCID : 0000-0002-7328-4441
- IdRef : 189782714
Résumé
Income-differentiated mortality, by reducing the share of poor persons in the population, leads to the “Mortality Paradox”: the worse the survival conditions of the poor are, the lower is the measured poverty. We show that FGT measures (Foster et al., 1984) are, in general, not robust to variations in survival conditions. Then, following Kanbur and Mukherjee (2007), we propose to adjust FGT poverty measures by extending the income profiles of the prematurely dead, and we identify the condition under which so-adjusted FGT measures are robust to mortality changes. Finally, we show, on the basis of data from 2007 on old-age poverty in 11 European economies, that the effect of extending income profiles of the prematurely dead on poverty measurement varies with : (1) the fictitious income assigned to the prematurely dead ; (2) the degree of poverty aversion; (3) the shape of the (unadjusted) income distribution; and (4) the strength of the income/mortality relationship.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
FGT Old-Age Poverty Measures and the Mortality Paradox : Theory and Evidence
|
Résumé |
en
Income-differentiated mortality, by reducing the share of poor persons in the population, leads to the “Mortality Paradox”: the worse the survival conditions of the poor are, the lower is the measured poverty. We show that FGT measures (Foster et al., 1984) are, in general, not robust to variations in survival conditions. Then, following Kanbur and Mukherjee (2007), we propose to adjust FGT poverty measures by extending the income profiles of the prematurely dead, and we identify the condition under which so-adjusted FGT measures are robust to mortality changes. Finally, we show, on the basis of data from 2007 on old-age poverty in 11 European economies, that the effect of extending income profiles of the prematurely dead on poverty measurement varies with : (1) the fictitious income assigned to the prematurely dead ; (2) the degree of poverty aversion; (3) the shape of the (unadjusted) income distribution; and (4) the strength of the income/mortality relationship.
|
Auteur(s) |
Mathieu Lefebvre
1
, Pierre Pestieau
2, 3, 4
, Grégory Ponthière
3, 5, 6
1
BETA -
Bureau d'Économie Théorique et Appliquée
( 93745 )
- Université de Lorraine, UFR Droit Sciences Economiques et Gestion, 13 place Carnot CO 70026, 54035 Nancy Cedex
Université de Strasbourg, Faculté des Sciences Economiques et de Gestion, 61 avenue de la Forêt Noire 67085 Strasbourg Cedex
- France
2
CORE -
Center of Operation Research and Econometrics [Louvain]
( 48233 )
- 34, Voie du Roman Pays B-1348 Louvain-la-Neuve
- Belgique
3
PSE -
Paris School of Economics
( 301309 )
- 48 boulevard Jourdan 75014 Paris
- France
4
CEPR -
Center for Economic Policy Research
( 143559 )
- Royaume-Uni
5
PJSE -
Paris Jourdan Sciences Economiques
( 578027 )
- 48 boulevard Jourdan 75014 Paris
- France
6
ERUDITE -
Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique
( 74242 )
- UPEM, 5 boulevard Descartes, 77454 Marne-la-Vallée CEDEX 2
UPEC - Faculté de sciences économiques et de gestion
Mail des mèches Rue Poète et Sellier 94010 Créteil Cedex
- France
|
Comité de lecture |
Oui
|
Volume |
64
|
Page/Identifiant |
428-458
|
Langue du document |
Anglais
|
Nom de la revue |
|
Vulgarisation |
Non
|
Date de publication |
2018
|
Numéro |
2
|
Audience |
Internationale
|
Mots-clés (JEL) |
|
Domaine(s) |
|
Mots-clés |
en
Income-differentiated mortality, FGT poverty measures
|
DOI | 10.1111/roiw.12277 |
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