Explaining the poverty difference between the US and the UK: a Shapley income-distribution decomposition approach

Zuobao Wang and Jing Sun

Applied Economics Letters, 2020, vol. 27, issue 17, 1438-1441

Abstract: This paper estimates the poverty level in the US and the UK during the 2004–2016 period and analyses the cause of the poverty difference. The results show that poverty in the US is more serious than that in the UK. Although the overall income in the US is higher than that in the UK, the poor in the US, especially the ultra-poor, are poorer than those in the UK. The inequality in the US is higher than that in the UK, which offsets the contribution of the higher income and renders the higher poverty level in the US as the dominant factor.

Date: 2020
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DOI: 10.1080/13504851.2019.1688238

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