Economic Studies in Inequality, Social Exclusion and Well-Being – Serie

The publication of this book is in large part due to the role of Canada's Inter­ national Development Research Center (IDRC) in encouraging policy-relevant research in the fields o f poverty and equity. The book has in particular benefit­ ted much from IDRC's support of two significant ventures, the Micro Impacts of Macro Economic and Adjustment Programs (MIMAP) and the Poverty and Economic Policy (PEP) international research network. We are most grateful to the IDRC for their continued and inspiring dedication, professionalism and vision in the field of development research. The Secretariat d'appui instituti- nel a la recherche ^conomique en Afrique (SISERA), the World Bank Institute and the African Economic Research Consortium (AERC) have also partially supported to the production of this book. The fundamental research was fur­ ther financed by grants from the Social Sciences and Humanities Research Council of Canada (SSHRC) and from the Ponds Quebecois de Recherche sur la Societe et la Culture (FQRSC) of the Province of Quebec. This book is mostiy targeted to senior undergraduate and graduate students in economics as well as to researchers and analytical policy makers. More gen­ erally, it is intended for social scientists and statisticians. Some of its content can also be instructive to less specialized readers, such as those in the general public wishing to introduce themselves to the challenges posed and the insights generated by distributive analysis. The book covers a relatively wide range of material.

Recent theoretical and empirical studies have concluded that in order to be accurate, poverty and deprivation must be measured within a multidimensional framework that is consistent, efficient, and statistically robust.The fuzzy sets approach to poverty measurement was developed in the early 1990s and continues to be refined by scholars of economics and sociology who find the traditional "monetary-only" indicators to be inadequate and arbitrary. This volume brings together advanced thinking on the multidimensional measurement of poverty, including the theoretical background, applications to cross-sections using contemporary European examples, and longitudinal aspects of multidimensional fuzzy poverty analysis that pay particular attention to the transitory, or impermanent, conditions that often occur during transitions to market economies.This book will be of interest to scholars and researchers and will be a useful text on poverty for advanced students in applied statistics, urban planning, economics, and sociology.

Jean-Jacques Rousseau wrote in the Preface to his famous Discourse on Inequality that “I consider the subject of the following discourse as one of the most interesting questions philosophy can propose, and unhappily for us, one of the most thorny that philosophers can have to solve. For how shall we know the source of inequality between men, if we do not begin by knowing mankind?” (Rousseau, 1754). This citation of Rousseau appears in an article in Spanish where Dagum (2001), in the memory of whom this book is published, also cites Socrates who said that the only useful knowledge is that which makes us better and Seneca who wrote that knowing what a straight line is, is not important if we do not know what rectitude is. These references are indeed a good illustration of Dagum’s vast knowledge, which was clearly not limited to the ?eld of Economics. For Camilo the ?rst part of Rousseau’s citation certainly justi?ed his interest in the ?eld of inequality which was at the centre of his scienti?c preoccupations. It should however be stressed that for Camilo the second part of the citation represented a “solid argument in favor of giving macroeconomic foundations to microeconomic behavior” (Dagum, 2001). More precisely, “individualism and methodological holism complete each other in contributing to the explanation of individual and social behavior” (Dagum, 2001).

Conceptualization and measurement of poverty have traditionally relied on purely economic approaches, with income or consumption as the only indicator. Multidimensional approaches have increasingly been used to understand poverty, but have yet to be fully operationalized. This book uses factor analysis and structural equations modelling to develop a multidimensional framework that integrates capability and social inclusion as additional poverty indicators. The empirical relevance of this methodological contribution is demonstrated through its application in the United States and Nepal.The proposed approach not only helps to identify different categories of the poor, but also to more accurately target resources and policies of poverty alleviation. The book will therefore be an important reference for professionals in development agencies as well as for poverty and policy researchers.

This book provides a synthesis of some recent issues and an up-to-date treatment of some of the major important issues in distributional analysis that I have covered in my previous book Ethical Social Index Numbers, which was widely accepted by students, teachers, researchers and practitioners in the area. Wide coverage of on-going and advanced topics and their analytical, articulate and authoritative p- sentation make the book theoretically and methodologically quite contemporary and inclusive, and highly responsive to the practical problems of recent concern. Since many countries of the world are still characterized by high levels of income inequality, Chap. 1 analyzes the problems of income inequality measurement in detail. Poverty alleviation is an overriding goal of development and social policy. To formulate antipoverty policies, research on poverty has mostly focused on inco- based indices. In view of this, a substantive analysis of income-based poverty has been presented in Chap. 2. The subject of Chap. 3 is people’s perception about income inequality in terms of deprivation. Since polarization is of current concern to analysts and social decisi- makers, a discussion on polarization is presented in Chap. 4.

This collection of essays honors a remarkable man and his work. Erik Thorbecke has made significant contributions to the microeconomic and the macroeconomic analysis of poverty, inequality and development, ranging from theory to empirics and policy. The essays in this volume display the same range. As a collection they make the fundamental point that deep understanding of these phenomena requires both the micro and the macro perspectives together, utilizing the strengths of each but also the special insights that come when the two are linked together. After an overview section which contains the introductory chapter and a chapter examining the historical roots of Erik Thorbecke's motivations, the essays in this volume are grouped into four parts, each part identifying a major strand of Erik's work—Measurement of Poverty and Inequality, Micro Behavior and Market Failure, SAMs and CGEs, and Institutions and Development. The range of topics covered in the essays, written by leading authorities in their own areas, highlight the extraordinary depth and breadth of Erik Thorbecke's influence in research and policy on poverty, inequality and development. Acknowledgements These papers were presented at a conference in honor of Erik Thorbecke held at Cornell University on October 10-11, 2003. The conference was supported by the funds of the H. E. Babcock Chair in Food, Nutrition and Public Policy, and the T. H. Lee Chair in World Affairs at Cornell University.

Poverty is a paradoxical state. Recognizable in the eld for any sensitive observer who travels in remote rural areas and urban slums and meets marginalized people in a given society, poverty still remains a challenge to conceptual formalization and to measurement that is consistent with such formalization. The analysis of poverty is multidisciplinary. It goes from ethics to economics, from political science to human biology, and any type of measurement rests on mathematics. Moreover, poverty is multifaceted according to the types of deprivation, and it is also gender and age speci c. A vector of variables is required, which raises a substantial problem for individual and group comparisons necessary to equity analysis. Multidimension- ity also complicates the aggregation necessary to perform the ef ciency analysis of policies. In the case of income poverty, these two problems, equity and ef ciency, have bene ted from very signi cant progress in the eld of economics. Similar achievements are still to come in the area of multidimensional poverty. Within this general background, this book has a very modest and narrow-scoped objective. It proposes an operational methodology for measuring multidimensional poverty, independent from the conceptual origin, the size and the qualitative as well as the quantitative nature of the primary indicators used to describe the poverty of an individual, a household or a sociodemographic entity.

Jean-Jacques Rousseau wrote in the Preface to his famous Discourse on Inequality that “I consider the subject of the following discourse as one of the most interesting questions philosophy can propose, and unhappily for us, one of the most thorny that philosophers can have to solve. For how shall we know the source of inequality between men, if we do not begin by knowing mankind?” (Rousseau, 1754). This citation of Rousseau appears in an article in Spanish where Dagum (2001), in the memory of whom this book is published, also cites Socrates who said that the only useful knowledge is that which makes us better and Seneca who wrote that knowing what a straight line is, is not important if we do not know what rectitude is. These references are indeed a good illustration of Dagum’s vast knowledge, which was clearly not limited to the ?eld of Economics. For Camilo the ?rst part of Rousseau’s citation certainly justi?ed his interest in the ?eld of inequality which was at the centre of his scienti?c preoccupations. It should however be stressed that for Camilo the second part of the citation represented a “solid argument in favor of giving macroeconomic foundations to microeconomic behavior” (Dagum, 2001). More precisely, “individualism and methodological holism complete each other in contributing to the explanation of individual and social behavior” (Dagum, 2001).

Conceptualization and measurement of poverty have traditionally relied on purely economic approaches, with income or consumption as the only indicator. Multidimensional approaches have increasingly been used to understand poverty, but have yet to be fully operationalized. This book uses factor analysis and structural equations modelling to develop a multidimensional framework that integrates capability and social inclusion as additional poverty indicators. The empirical relevance of this methodological contribution is demonstrated through its application in the United States and Nepal.The proposed approach not only helps to identify different categories of the poor, but also to more accurately target resources and policies of poverty alleviation. The book will therefore be an important reference for professionals in development agencies as well as for poverty and policy researchers.

This book provides a synthesis of some recent issues and an up-to-date treatment of some of the major important issues in distributional analysis that I have covered in my previous book Ethical Social Index Numbers, which was widely accepted by students, teachers, researchers and practitioners in the area. Wide coverage of on-going and advanced topics and their analytical, articulate and authoritative p- sentation make the book theoretically and methodologically quite contemporary and inclusive, and highly responsive to the practical problems of recent concern. Since many countries of the world are still characterized by high levels of income inequality, Chap. 1 analyzes the problems of income inequality measurement in detail. Poverty alleviation is an overriding goal of development and social policy. To formulate antipoverty policies, research on poverty has mostly focused on inco- based indices. In view of this, a substantive analysis of income-based poverty has been presented in Chap. 2. The subject of Chap. 3 is people’s perception about income inequality in terms of deprivation. Since polarization is of current concern to analysts and social decisi- makers, a discussion on polarization is presented in Chap. 4.

Recent theoretical and empirical studies have concluded that in order to be accurate, poverty and deprivation must be measured within a multidimensional framework that is consistent, efficient, and statistically robust.The fuzzy sets approach to poverty measurement was developed in the early 1990s and continues to be refined by scholars of economics and sociology who find the traditional "monetary-only" indicators to be inadequate and arbitrary. This volume brings together advanced thinking on the multidimensional measurement of poverty, including the theoretical background, applications to cross-sections using contemporary European examples, and longitudinal aspects of multidimensional fuzzy poverty analysis that pay particular attention to the transitory, or impermanent, conditions that often occur during transitions to market economies.This book will be of interest to scholars and researchers and will be a useful text on poverty for advanced students in applied statistics, urban planning, economics, and sociology.

Traditionally, there have been two strands in the analysis of poverty, inequality and development -- a micro strand that focuses on individual behavior, welfare economics and the measurement of inequality and poverty; and a macro strand that analyzes economy-wide policies and the role of institutions. This unique volume brings together both strands in a series of essays written by leading experts in the field of economic development. Topics include measurement issues, micro-behavior determinants of poverty outcomes, economy-wide models in the SAM-CGE tradition and the institutional framework underlying macro policies.

​This book maps the latest developments in the policy relevant analysis on poverty, inclusion and the social agenda in the Western Balkans. It does so by presenting a selection of recent papers which explore from a methodological and analytical point of view how the inclusion agenda can be monitored and adapted to understand the challenges in the region. The volume includes an overview and four sections, covering respectively: (1) innovations in terms of measurement of poverty and inclusion in the region (the concept of inclusion as elaborated at the EU level, innovations in survey design to suit the measurement of inclusion, methodological insights from qualitative work); (2) innovative country level analysis (updating poverty mapping in inter-censual years, the analysis of material deprivation, the analysis of determinants of social inclusion, subjective wellbeing of public work programs participants); (3) examples of country level analysis of drivers of exclusion (barriers to formalization in the labour market, gender disparities in the labour market, disruption in social networks following urbanizations, attitudes towards multi-ethnic states); (4) building inclusive safety nets (an assessment of safety nets in the region, the political economy of welfare reform, micro-simulations of social assistance reform, the adoption of better tools to improve targeting performance).   The chapters combine sophisticated techniques which are at the frontiers of poverty analysis (small area estimation, efficiency analysis applied to household welfare, micro-simulations) with less ground-breaking papers which take advantage of innovative datasets or perspectives deeply grounded in the policy dialogue in the countries of the region. By providing a wide spectrum of innovative and policy relevant analytical contributions this book will be of broader interest than for observers of the region. ​

The "Arab Spring" events unfolding in southern Mediterranean countries show that multiple deprivations may be powerful drivers of political instability. This book probes the effects of poverty and exclusion, both long-term and in light of current upheaval.

?This book maps the latest developments in the policy relevant analysis on poverty, inclusion and the social agenda in the Western Balkans.

The events taking place in several of South Mediterranean countries since December 2010 show that multiple deprivations may be powerful drivers of political instability. Though improvements of the living conditions have been regularly principal demands along with civil and political liberties in the demonstrations, one of the main striking facts about this so-called “Arab Spring” is that poverty had not been given the same emphasis in southern Mediterranean countries during the last decades as in other areas of the developing and emerging world.Although the growing recognition that poverty is a multidimensional concept, studies of poverty in South Mediterranean countries have often been dominated by a monetary approach. However, there is a growing evidence that it is suitable to go beyond the money-metric measures of poverty and to supplement its results with other approaches that adopt a broader definition of well- being. Though poverty is only one of many causes of this “Arab Spring,” we argue that it is a key feature to understand these historic events and that it is necessary to draw a detailed picture of poverty and social exclusion for each one of these countries. Moreover, if the Union for the Mediterranean succeeds in fostering economic cooperation within the Mediterranean area, the focus on the population’s well-being of its southern members will deserve scrutiny in the next few years to understand the forces that will drive the Euro-Mediterranean relationships, in particular for migration issues.This book brings together recent advances on the measurement of poverty with empirical applications on South-Mediterranean countries. It introduces new tools for analyzing poverty and shows that the linkages between income and well-being are not straightforward and hinge on many determinants. It shows that the efficiency of poverty reducing policies should also be assessed on the basis of the satisfaction of non-income needs likehealth, education or participation in social life.

This book addresses poverty and well-being, equity, and efficiency in selected African countries. The chapters focus on three main topics: studies in the measurement and analysis of well-being and vulnerability to poverty, women's empowerment, and the dynamics and determinants of income and efficiency among smallholders. The chapters in the first section examine poverty, well-being, and vulnerability to poverty, as well as social exclusion, with a focus on households in Ethiopia, Rwanda, and Tanzania. They highlight the need to consider multidimensional measures of well-being and vulnerability to poverty, the need to address the distribution of vulnerability across different segments of the population, as well as the importance of developing public policies aimed at poverty reduction and promoting the well-being of the poor. The next section deals with issues related to women’s empowerment, including a multidimensional case study of women’s empowerment in Ghana and women’s access to microfinance services in Ethiopia. The final section focuses on dynamics and determinants of income and efficiency among farm households in Ethiopia and Uganda. Using a variety of methodologies, this volume provides a multifaceted approach to studying poverty and well-being in a diverse range of locations. As such, it of use to undergraduate and graduate students studying African economics or economics of poverty and well-being, and will be appealing to public policymakers and international aid agencies.

What constitutes a good life? For most people, well-being involves more than a high income or material prosperity alone. Many non-material aspects, such as health, family life, living environment, job quality and the meaningful use of time are at least as important. Together, these factors also influence the degree to which people are satisfied with their lives, and help to determine how happy they feel.This book argues that happiness and life satisfaction do not form a good basis for measuring well-being, and proposes an alternative method that not only considers the various aspects of well-being, but also the fact that people have their own views on what is important in life.Not limited just to theory, the book also presents a large-scale, representative survey involving more than 3000 adults from over 2000 Belgian families, which charted the various aspects of the individual well-being of Belgians. Focusing on the unequal distribution of these various aspects of well-being within families, the survey showed that some Belgians are more likely to suffer from cumulative deprivation in multiple dimensions. Based on this innovative study, the book describes which people in society are worst off – and these are not necessarily only people on low incomes or those who feel unhappy – and proposes that policymakers prioritise these individuals.

What constitutes a good life? For most people, well-being involves more than a high income or material prosperity alone. Many non-material aspects, such as health, family life, living environment, job quality and the meaningful use of time are at least as important. Together, these factors also influence the degree to which people are satisfied with their lives, and help to determine how happy they feel.This book argues that happiness and life satisfaction do not form a good basis for measuring well-being, and proposes an alternative method that not only considers the various aspects of well-being, but also the fact that people have their own views on what is important in life.Not limited just to theory, the book also presents a large-scale, representative survey involving more than 3000 adults from over 2000 Belgian families, which charted the various aspects of the individual well-being of Belgians. Focusing on the unequal distribution of these various aspects of well-being within families, the survey showed that some Belgians are more likely to suffer from cumulative deprivation in multiple dimensions. Based on this innovative study, the book describes which people in society are worst off – and these are not necessarily only people on low incomes or those who feel unhappy – and proposes that policymakers prioritise these individuals.

Providing a comprehensive empirical analysis of the effects of trade policy on inequality in developing countries, this volume will be of interest to researchers and students of economic inequality, development, and international trade as well as policymakers interested in the inequality and poverty consequences of trade policy.

Providing a comprehensive empirical analysis of the effects of trade policy on inequality in developing countries, this volume will be of interest to researchers and students of economic inequality, development, and international trade as well as policymakers interested in the inequality and poverty consequences of trade policy.

This volume surveys and combines the different dimensions of globalization so as to propose a general diagnosis of the way they interact to explain growing inequality in advanced economies. The extant economic literature has widely analyzed (i) the impact on inequality of trade between advanced and emerging countries (North-South Trade), particularly offshoring, (ii) the impact of tax base mobility on tax competition and (iii) the globalization-driven constraints on social policies and labor market institutions. Those three strands of analysis and the related literature have been reviewed in a number of surveys but have not been combined to provide an extensive study of the impact of their interactions on inequality. This volume fills that gap. Providing a general diagnosis of the globalization-inequality nexus within advanced economies and opening new avenues for research and potential reforms, this book will be of interest to researchers and students of economics and the social sciences.

This volume surveys and combines the different dimensions of globalization so as to propose a general diagnosis of the way they interact to explain growing inequality in advanced economies.

This volume explores several aspects of Amartya Sen and Martha Nussbaum’s framework for thinking about individual well-being. Called the functioning and capability approach (FCA), this framework radically departs from the conventional approach to the concept of individual well-being in welfare economics insofar as it identifies an individual’s well-being as the value attached to the individual’s achievements along certain dimensions of life and her freedom to choose a vector of such achievements rather than as the individual’s happiness or desire fulfillment. The volume consists of two main parts. Part I outlines and studies the basic conceptual and analytical framework and its major features in detail. Part II of the book is devoted to application of the analytical structure of the FCA to practical problems of measuring well-being, deprivation, and inequality in a society. The book concludes with a discussion of the main conclusions of earlier chapters and the role of social scientists and philosophers in the FCA. This volume will be of interest to students, researchers, and practitioners studying multidimensional well-being, deprivation and inequality.

This volume explores several aspects of Amartya Sen and Martha Nussbaum’s framework for thinking about individual well-being. Called the functioning and capability approach (FCA), this framework radically departs from the conventional approach to the concept of individual well-being in welfare economics insofar as it identifies an individual’s well-being as the value attached to the individual’s achievements along certain dimensions of life and her freedom to choose a vector of such achievements rather than as the individual’s happiness or desire fulfillment. The volume consists of two main parts. Part I outlines and studies the basic conceptual and analytical framework and its major features in detail. Part II of the book is devoted to application of the analytical structure of the FCA to practical problems of measuring well-being, deprivation, and inequality in a society. The book concludes with a discussion of the main conclusions of earlier chapters and the role of social scientists and philosophers in the FCA. This volume will be of interest to students, researchers, and practitioners studying multidimensional well-being, deprivation and inequality.

Second, while tolerable inequality has the potential to evolve into systemic patterns of polarization, segregation, and discrimination, it can ultimately escalate into unjustifiable inequality.

This open access book presents an interdisciplinary perspective on the study of well-being at work. Written by experts from various disciplines, it integrates organizational behavior, sociology, economics, economic history, and entrepreneurship to probe two central themes: the causes and consequences of work meaningfulness and work motivations, and their implications for workers and organizations. It comprehensively explores why people find meaning in their work, what motivates them to work, and how this perception shapes individual, organizational, and economic outcomes. The respective chapters investigate how these central topics manifest in various contexts, from psychological and organizational frameworks to the impact of economic theories and technological change, offering new perspectives on the interplay between work, individual fulfillment, and societal development.The edited volume promises to be a distinctive contribution to the field, sharing provocative insights and summaries of the state-of-the-art in the growing body of literature on meaningful work and work orientations, raising pivotal questions and providing informed answers that will shape future studies and practices.

Public spending on infrastructure plays an important role in promoting economic growth and poverty alleviation. In that context, the financing of infrastructure has been a critical element of most economic growth and poverty reduction strategies in developing countries, since the start of this millennium.

This volume is a collection of selected studies on poverty and well-being in East Africa. Using a multidimensional approach, the authors hope to provide a broad view of poverty and a thorough account of the variables that contribute to it. As opposed to traditional studies of poverty, which focus mainly on material well-being, this volume includes criteria such as material standard of living, health, education, housing, personal security, access to information, freedom, participation in organization, corruption, trust, and employment. The studies highlighted in this volume are grouped into the following four research areas: child poverty and malnutrition, dynamics and determinants of poverty, multidimensional measures of poverty, and energy-environment-poverty relationships. Together, these studies provide a comprehensive picture of the state of multidimensional poverty, its measurement, causal factors, and policies and practices in Burundi, Cameron, Ethiopia, Kenya, Madagascar, Malawi, Mozambique, Nigeria, Rwanda and Tanzania. The methodology utilized in the studies is diverse as well, ranging from econometric analysis to decision theory, to neoclassical growth models. This book is geared towards students and researchers interested in economic development, welfare, and poverty in Africa as well as policy makers and members of NGOs and international aid agencies.