Bottom incomes and the measurement of poverty

Lidia Ceriani, Vladimir Hlasny and Paolo Verme

Chapter 15 in Research Handbook on Measuring Poverty and Deprivation, 2023, pp 161-170 from Edward Elgar Publishing

Abstract: The chapter reviews and discusses the main issues related to negative and zero incomes that are relevant for the measurement of poverty. It shows the prevalence of non-positive incomes in high- and middle-income countries, provides an analysis of the sources and structure of these incomes, outlines the various approaches proposed by scholars and statistical agencies to treat non-positive incomes, and explains how non-positive incomes and alternative correction methods impact the measurement of standard poverty indexes. It is argued that negative and zero incomes cannot be treated equally in terms of household well-being and that standard methods used by practitioners fail to recognize this fact likely resulting in overestimations of poverty.

Keywords: Development Studies; Economics and Finance; Geography; Research Methods; Sociology and Social Policy (search for similar items in EconPapers)
Date: 2023
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