Inequality, poverty and mobilitychoosing income or consumption as welfare indicators
- Gradín Lago, Carlos Manuel
- Cantó Sánchez, Olga
- Río Otero, Coral del
ISSN: 0210-1521
Year of publication: 2008
Volume: 32
Issue: 2
Pages: 169-200
Type: Article
More publications in: Investigaciones económicas
Abstract
The economic literature has discussed at large about the best indicator of individual welfare: income or consumption. The implications of this choice are not only a matter for theoretical discussion but turn out to be very relevant for empirical analysis. Up to now, the debate has focused on the e..ects on distributional statics and avoided discussing or o..ering evidence of the effects on mobility or poverty dynamics. In this paper we discuss the strengths and weaknesses of both resource measurements and analyze the e..ects of the choice on distributional dynamics by presenting empirical evidence on Spain obtained from a rotating longitudinal survey.