Welfare Dynamics Measurement : Two Definitions of a Vulnerability Line and Their Empirical Application
Little research currently exists on a vulnerability line that distinguishes the poor population from the population that is not poor but that still faces significant risk of falling back into poverty. This paper attempts to fill this gap by proposi...
Main Authors: | , |
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Language: | English en_US |
Published: |
World Bank, Washington, DC
2014
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2014/06/19705818/welfare-dynamics-measurement-two-definitions-vulnerability-line-empirical-application http://hdl.handle.net/10986/18831 |
Summary: | Little research currently exists on a
vulnerability line that distinguishes the poor population
from the population that is not poor but that still faces
significant risk of falling back into poverty. This paper
attempts to fill this gap by proposing vulnerability lines
that can be straightforwardly estimated with panel or
cross-sectional household survey data, in rich- and
poor-country settings. These vulnerability lines offer a
means to broaden traditional poverty analysis and can also
assist with the identification of the middle class or
resilient population groups. Empirical illustrations are
provided using panel data from the United States (Panel
Study of Income Dynamics) and Vietnam (Vietnam Household
Living Standards Survey) for the period 2004-2008 and
cross-sectional data from India (National Sample Survey) for
the period 2004-2009. The estimation results indicate that
in Vietnam and India during this time period, the population
living in poverty and the middle class have been falling and
expanding, respectively, while the opposite has been
occurring in the United States. |
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