Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2020.1860789
How much would it cost to eliminate the at-risk-ofpoverty rate? Evidence from the European Union
Ewa Aksman
Sažetak
The aim of this paper is to assess the cost of eliminating the atrisk-of-poverty rate, based on the Lorenz curve approach (the Gini
coefficient, the Kakwani progressivity coefficient). A set of new
equations that allow to find a link between cost of closing the
relative poverty gap and income inequality is proposed. The main
finding is that, after the initial allocation of social benefits, the
share of benefits that are still needed to close the relative poverty
gap in the pre-government income is a function not only of the
at-risk-of-poverty rate, but also of the relative poverty line, the
Gini coefficient of income of the poor, and the Kakwani progressivity coefficient of extra benefits. The empirical application of the
methodology adopted is illustrated with the use of EU household
sample (the data is derived from the EU-Survey on Income and
Living Conditions). In line with the suggested decomposition, in
the research sample ranking countries according to the at-risk-ofpoverty rate does not coincide with the way they are sorted by
the share of extra benefits.
Ključne riječi
the at-risk-of-poverty rate; cost of closing the poverty gap; the Gini coefficient; the Kakwani progressivity coefficient
Hrčak ID:
301265
URI
Datum izdavanja:
31.12.2021.
Posjeta: 157 *