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Using Household Expenditure to Develop an Income Poverty Line

Bibliographic Data

ID11196459
AuthorsPeter Saunders (0000-0003-1368-1696, University of York, corresponding author), Jonathan Bradshaw (University of York), Michael Hirst (University of York)
Year2002
Volume36
Issue3
Pages217-234
Publication date2002-06-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSocial Policy and Administration (JOURNAL)
Journal identifiersISSN: 0144-5596 • E-ISSN: 1467-9515
PublisherWiley (PUBLISHER • GB)
DOI10.1111/1467-9515.00248
OpenAlexW1977501578
LanguageEN
Citations received6

Income and expenditure measures are commonly used to establish poverty lines representing, respectively, the availability of cash resources and the standard of living approaches to measuring the extent and composition of poverty. Using UK data we compare these two measures and show how they might be combined. Although overall poverty rates are similar whichever measure is used, the relativities they imply for different types of household differ considerably. There is little overlap between income and expenditure poverty and very few households are both income–and expenditure–poor. The concept of poverty as constraint on choice or constrained expenditure is then defined as the absence of spending on durable goods and luxury items. Using logistic regression, income thresh–olds associated with the observed levels of constrained expenditure are derived for different types of household. Assuming all income is spent, these thresholds define a poverty line below which expenditure is severely constrained. The extent to which social assistance rates limit or prevent household expenditure is also estimated. The method and the estimates illustrate the value of exploring the links between income and expenditure in the measurement of poverty, drawing attention to the limitations of the data, and identifying future research needs

Constraint (computer-aided design · Demographic economics · Econometrics · Economic growth · Economics · Geography · Household income · Poverty · Housing, Finance, and Neoliberalism · Income, Poverty, and Inequality · Mathematics · Social Issues and Policies

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  • The Historical Development of Family Budget Standards in Britain, from the 17th Century to the Present

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Unique citing works6
Citations per year0,29
Citation span2005 - 2019 (15)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 6
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