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Child poverty in Japan: comparing the accuracy of alternative measures.

Thursday 9 February 2017, 1.00PM to 2.00pm

Speaker(s): Oleksandr Movshuk (University of Toyama)

In this paper I compare income and consumption as alternative indexes of child poverty in Japan. Using micro data from the National Survey of Family Income and Expenditures, I found that consumption-based measures showed less child poverty compared with income-based measures. To explain the difference, the paper considered three explanations: under-reporting of incomes (which would inate the number of incomepoor), over-reporting of consumption (which would reduce the number of consumption-poor), and consumption smoothing in response to negative income shocks. I present evidence that the lower rate of consumption-based poverty primarily reflects the income under-reporting, with little evidence for the over-reporting of consumption and for the consumption smoothing among the poor. I also compared income and consumption in their ability to identify households with lower material well-being (such as the lack of major household appliances, or inability to own a house). In cases of signicant differences in such comparisons, consumption was almost always better than income in identifying materially disadvantaged households with children.

Location: Economics Staff Room A/EC202

Admission: Staff and PhD students