Negative Net Incomes and the Measurement of Poverty: A Note

This note warns about the careless computation of poverty indexes when the welfare of each household is measured by its net income, since this can be negative. As is illustrated in the case of Mexico, even if only a handful of households report negative incomes, the resulting poverty aggregates, when they go beyond a mere headcount measure, can behave rather badly. The note ends with suggestions on how to deal with the problem.

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Year of publication:	2007-04
Authors:	Sandoval, Héctor H. ; Urzúa, Carlos M.
Institutions:	Escuela de Graduados en Administración Pública y Políticas Públicas (EGAP), Instituto Tecnológico y de Estudios Superiores de Monterrey (ITESM)
Subject:	Poverty measures \| poverty indexes \| negative income \| income and expenditure survey \| Mexico

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Extent:	application/pdf
Series:	EGAP Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 2007-07
Classification:	I32 - Measurement and Analysis of Poverty ; C81 - Methodology for Collecting, Estimating, and Organizing Microeconomic Data
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005148435