Measuring Poverty Changes with Bounded Equivalence Scales: Australia in the 1980s

Bruce William Bradbury ()

Economica, 1997, vol. 64, issue 254, pages 245-64

Abstract: When measuring poverty, an equivalence scale is used to take account of the different income needs of different family types. However, there is little consensus about the choice of scale. A method is presented here that permits general statements about changes in poverty to be made which will be true for a range of equivalence scales. The method is used to describe changes in poverty in Australia between 1981-82 and 1989-90. Different scales lead to estimates of the increase in the head count poverty rate between 1981-82 and 1989-90 of between +1.7 and -0.6 percentage points (at commonly chosen poverty thresholds). Copyright 1997 by The London School of Economics and Political Science

Date: 1997

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