Asset-Based Measurement of Poverty

Abstract

Poverty is generally defined as income or expenditure insufficiency, but the economic condition of a household also depends on its real and financial asset holdings. This paper investigates measures of poverty that rely on indicators of household net worth. We review and assess two main approaches followed in the literature: income-net worth measures and assetpoverty. We provide fresh cross-national evidence based on data from the Luxembourg Wealth Study.

Asset Poverty in Urban China: A Study Using the 2002 Chinese Household Income Project

“…This study provides valuable information on asset poverty in China, and contributes to the literature in which estimates of asset poverty are available only for several developed countries (Azpitarte, 2011;Brandolini et al, 2010;Caner and Wolff, 2004;Haveman and Wolff, 2001;Kim and Kim, 2013). This study provides valuable information on asset poverty in China, and contributes to the literature in which estimates of asset poverty are available only for several developed countries (Azpitarte, 2011;Brandolini et al, 2010;Caner and Wolff, 2004;Haveman and Wolff, 2001;Kim and Kim, 2013).…”

“…Poverty research primarily focuses on income only, despite efforts to include assets in poverty measures as well (Nam et al, 2008;Brandolini et al, 2010). Haveman and Wolff (2001) categorise households as asset poor if their access to asset-type resources 'is insufficient to enable them to meet its basic needs for some limited period of time'.…”

“…Using the data from the Luxembourg Wealth Study, Brandolini et al (2010) study asset poverty in several wealthy countries (including Canada, Finland, Germany, Italy, Norway, Sweden, the UK and the US), and report that the asset-poverty rate is two to three times the income-poverty rate in most of these countries. Using the data from the Luxembourg Wealth Study, Brandolini et al (2010) study asset poverty in several wealthy countries (including Canada, Finland, Germany, Italy, Norway, Sweden, the UK and the US), and report that the asset-poverty rate is two to three times the income-poverty rate in most of these countries.…”

Poverty, Sociology of

“…The concern with these resources among most social scientists is generally not with material consumption alone, but also with the capabilities such resources give to household members so they can participate fully in society (Sen, 1983(Sen, , 1992Brandolini et al, 2010). When command over economic resources falls short of needs a household (or person or family) is classified as poor.…”

“…Both consumption poverty and asset poverty have been proposed as an alternative to income poverty in rich nations Sullivan, 2012a, 2012b;Brandolini et al, 2010). And in a few nations, asset and income poverty can be combined into a joint measure (Gornick et al, 2009) as can consumption and income poverty Sullivan, 2012a, 2012b).…”