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Measuring poverty using both income and wealth: A cross-country comparison between the U.S. and Spain

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posted on 2019-01-08, 15:47 authored by Fran AzpitarteFran Azpitarte
We study the correspondence between a householdís income and its vulnerability to income shocks in two developed countries: the U.S. and Spain. Vulnerability is measured by the availability of wealth to smooth consumption in a multidimensional approach to poverty, which allows us to identify three groups of households: the twice-poor group which includes income-poor households who lack of an adequate stock of wealth; the group of protected-poor households, which are all those incomepoor families with a bu§er stock of wealth they can rely on; lastly, the vulnerablenon-poor group, including households above the income-poverty line that do not hold any stock of wealth. Interestingly, the risk of belonging to these groups changes over the life-cycle in both countries while the size of the groups di§ers signiÖcantly between Spain and the U.S., although this result is quite sensitive to whether the housing wealth component is included in the wealth measure or not.

Funding

Financial support from the Xunta de Galicia (10SEC300023PR), the Ministerio de Ciencia e InnovaciÛn (ECO2010-21668-C03-03) , and the Pedro BarriÈ de la Maza Foundation is gratefully acknowledged.

History

School

  • Social Sciences

Department

  • Communication, Media, Social and Policy Studies

Published in

Review of Income and Wealth

Volume

58

Issue

1

Pages

24 - 50

Citation

AZPITARTE, F., 2012. Measuring poverty using both income and wealth: A cross-country comparison between the U.S. and Spain. Review of Income and Wealth, 58(1), pp. 24 - 50.

Publisher

© 2011 The Author © 2011 International Association for Research in Income and Wealth. Published by Wiley

Version

  • AM (Accepted Manuscript)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/

Publication date

2012

Notes

This is the peer reviewed version of the following article: AZPITARTE, F., 2012. Measuring poverty using both income and wealth: A cross-country comparison between the U.S. and Spain. Review of Income and Wealth, 58(1), pp. 24 - 50, which has been published in final form at https://doi.org/10.1111/j.1475-4991.2011.00481.x. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.

ISSN

0034-6586

Language

  • en