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Multidimensional time and income poverty: well-being gap and minimum 2DGAP poverty intensity – German evidence

Joachim Merz and Tim Rathjen

The Journal of Economic Inequality, 2014, vol. 12, issue 4, 555-580

Abstract: This paper focuses on interdependent multidimensional poverty of time and income with its incidence and intensity. We introduce a Two Dimensional Minimum Poverty Gap (2DGAP) measure, which quantifies the shortest path to escape multidimensional poverty. The 2DGAP disentangles single poverty attribute gaps while assuring their interdependence; an important issue for targeted antipoverty policies. Besides income, we include genuine personal leisure time with social participation reflecting Sen’s capability approach. The interdependence of multidimensional poverty is estimated by a CES-type well-being function with individual German data. The empirical results of Germany’s “working poor” emphasize the importance of time with social participation aspects in the multidimensional poverty discussion. Copyright Springer Science+Business Media New York 2014

Keywords: Interdependent multidimensional time and income poverty; Genuine personal leisure time; Union and compensation approach; Minimum multidimensional poverty gap (2DGAP); Extended economic well-being; Satisfaction/happiness; Working poor; CES well-being functon; German Socio-Economic Panel; German Time Use Survey 2001/02 (search for similar items in EconPapers)
Date: 2014
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DOI: 10.1007/s10888-013-9271-6

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