Using the median and the mean of the income to establish the poverty lines

One of the methods to estimate the poverty level inside a given population is based on how to define the poverty line values. Each person having his income under the poverty threshold will be considered to be poor. In the literature we distinguish at least three approaches: to evaluate the absolute...

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Main Authors: Maria Livia STEFANESCU, Stefan STEFANESCU
Format: Article
Language:English
Published: "Nicolae Titulescu" University of Bucharest 2014-06-01
Series:Computational Methods in Social Sciences
Subjects:
Online Access:http://cmss.univnt.ro/wp-content/uploads/vol/split/vol_II_issue_1/CMSS_vol_II_issue_1_art.002.pdf
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author Maria Livia STEFANESCU
Stefan STEFANESCU
author_facet Maria Livia STEFANESCU
Stefan STEFANESCU
author_sort Maria Livia STEFANESCU
collection DOAJ
description One of the methods to estimate the poverty level inside a given population is based on how to define the poverty line values. Each person having his income under the poverty threshold will be considered to be poor. In the literature we distinguish at least three approaches: to evaluate the absolute poverty line, to find a relative poverty threshold depending on the main indicators of the income distribution in the analyzed community or to assume a subjective point of view. The procedures for determining the relative poverty lines are based in practice on the mean or the median of the population income. To assure a concordance between the concrete estimation of several possible poverty thresholds and the poverty and inequality real phenomena we proposed to be verified three conditions. Finally, we also proved by examples that each of these restrictions are not obligatory satisfied by an arbitrary real positive data set. The present study will be extended in the future to assure a theoretical support for estimating more exactly the relative poverty lines.
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spelling doaj.art-eb83661fe44d445392ed5e1a04e572cc2023-09-02T02:14:46Zeng"Nicolae Titulescu" University of BucharestComputational Methods in Social Sciences2344-12322344-12322014-06-01212127Using the median and the mean of the income to establish the poverty linesMaria Livia STEFANESCU0Stefan STEFANESCU1-Research Institute for Quality of Life, Romanian AcademyOne of the methods to estimate the poverty level inside a given population is based on how to define the poverty line values. Each person having his income under the poverty threshold will be considered to be poor. In the literature we distinguish at least three approaches: to evaluate the absolute poverty line, to find a relative poverty threshold depending on the main indicators of the income distribution in the analyzed community or to assume a subjective point of view. The procedures for determining the relative poverty lines are based in practice on the mean or the median of the population income. To assure a concordance between the concrete estimation of several possible poverty thresholds and the poverty and inequality real phenomena we proposed to be verified three conditions. Finally, we also proved by examples that each of these restrictions are not obligatory satisfied by an arbitrary real positive data set. The present study will be extended in the future to assure a theoretical support for estimating more exactly the relative poverty lines.http://cmss.univnt.ro/wp-content/uploads/vol/split/vol_II_issue_1/CMSS_vol_II_issue_1_art.002.pdfrelative poverty lineinequalityaxiomsmeasurementGini indexincome distributionmeanmedian
spellingShingle Maria Livia STEFANESCU
Stefan STEFANESCU
Using the median and the mean of the income to establish the poverty lines
Computational Methods in Social Sciences
relative poverty line
inequality
axioms
measurement
Gini index
income distribution
mean
median
title Using the median and the mean of the income to establish the poverty lines
title_full Using the median and the mean of the income to establish the poverty lines
title_fullStr Using the median and the mean of the income to establish the poverty lines
title_full_unstemmed Using the median and the mean of the income to establish the poverty lines
title_short Using the median and the mean of the income to establish the poverty lines
title_sort using the median and the mean of the income to establish the poverty lines
topic relative poverty line
inequality
axioms
measurement
Gini index
income distribution
mean
median
url http://cmss.univnt.ro/wp-content/uploads/vol/split/vol_II_issue_1/CMSS_vol_II_issue_1_art.002.pdf
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