Decomposing Vulnerability to Poverty

Martina Celidoni

Review of Income and Wealth, 2015, vol. 61, issue 1, 59-74

Abstract: type="main">

This paper applies the decomposition of the Foster–Greer–Thorbecke poverty index to the measurement of individual vulnerability to poverty. I highlight that poverty risk can be expressed as a function of expected incidence, expected intensity, and expected variability below the poverty line, three essential aspects for improving the design of appropriate risk-management policies. An empirical illustration is provided using the British Household Panel Survey and the Italian Survey on Household Income and Wealth.

Date: 2015
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