Why Time Deficits Matter

212 Pages·2012·1.7 MB·English

by  Ajit Zacharias

WHY TIME DEFICITS MATTER:
IMPLICATIONS FOR THE MEASUREMENT
OF POVERTY
Ajit Zacharias, Rania Antonopoulos, and Thomas Masterson
July 2012
Empowered lives.
Resilient nations.
Acknowledgements
Ajit Zacharias and Rania Antonopoulos of the Levy Economics Institute directed the project. Thomas
MastersonoftheLevyEconomicsInstitutehadtheprimaryresponsibilityforthestatisticalmatchesand
simulations that provide the basis for the bulk of the results of the report. The authors are deeply
grateful to the United Nations Development Programme (UNDP) and International LabourOrganization
(ILO)fortheirgeneroussupportofthisproject.
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Contents
Preface........................................................................................................................................................11
1 Introduction........................................................................................................................................14
1.1 Context........................................................................................................................................14
1.2 Theconceptualconcernwithexistingincomepovertymeasures.............................................17
1.3 Abriefintroductiontotheanalyticalframework.......................................................................18
1.4 Objectivesoftheresearchproject..............................................................................................19
1.5 InformationcontentoftheLIMTIPandpotentialuses..............................................................20
2 ModelandEmpiricalMethodology....................................................................................................22
2.1 Amodeloftimeandincomepoverty.........................................................................................23
2.2 Empiricalmethodologyanddata................................................................................................27
2.2.1 Statisticalmatching.............................................................................................................27
2.2.2 Estimatingtimedeficits.......................................................................................................29
2.2.3 Adjustedpovertythresholds...............................................................................................34
2.2.4 AccountingforhireddomestichelpinMexico...................................................................35
2.2.5 Simulationsofemploymentandhouseholdwork..............................................................36
3 IncomeandTimePovertyofHouseholds...........................................................................................41
3.1 Allhouseholds.............................................................................................................................41
3.1.1 OfficialversusLIMTIPincomepoverty................................................................................41
3.1.2 TheLIMTIPclassificationofhouseholds.............................................................................51
3.1.3 Acloserlookattime-poorhouseholds:effectsofpovertystatusandgender..................52
3.2 Householdsbyemploymentstatus............................................................................................60
3.2.1 OfficialversusLIMTIPincomepoverty................................................................................60
3.2.2 TheLIMTIPclassificationofhouseholds.............................................................................75
3.2.3 Time-poorhouseholds........................................................................................................79
3.3 Householdsbytypeofhousehold..............................................................................................85
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3.3.1 OfficialversusLIMTIPincomepoverty................................................................................85
3.3.2 TheLIMTIPclassificationofhouseholds.............................................................................95
3.3.3 Time-poorhouseholds......................................................................................................100
3.4 Summingup..............................................................................................................................113
4 IncomeandTimePovertyofIndividuals...........................................................................................118
4.1 Allindividuals............................................................................................................................120
4.1.1 OfficialversusLIMTIPincomepoverty..............................................................................120
4.1.2 TheLIMTIPclassificationofindividuals............................................................................125
4.1.3 Timepovertyratesofmenandwomen............................................................................129
4.2 Individualsbyemploymentcharacteristics..............................................................................134
4.2.1 Employedversusnonemployed........................................................................................134
4.2.2 Employedpersonsbyearningsquintile............................................................................142
4.2.3 Employedpersonsbytypeofemployment......................................................................156
4.3 Summingup..............................................................................................................................168
5 Full-TimeEmploymentandPoverty..................................................................................................172
5.1 Characteristicsofemployableadults........................................................................................174
5.2 Theeffectsoffull-timeemploymentontheincomeandtimepovertyofhouseholds...........176
5.2.1 OfficialversusLIMTIPincomepoverty..............................................................................176
5.2.2 Thehard-corepoor...........................................................................................................178
5.2.3 TheLIMTIPclassificationofhouseholds...........................................................................182
5.3 Theeffectsoffull-timeemploymentontheincomeandtimepovertyofindividuals.............187
5.3.1 OfficialversusLIMTIPincomepoverty..............................................................................187
5.3.2 TheLIMTIPclassificationofindividuals............................................................................188
5.3.3 Timepovertyratesforemployedmenandwomen.........................................................195
5.4 Summingup..............................................................................................................................197
6 ConcludingRemarks:Policy(Re)Considerations..............................................................................200
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6.1 Theemployedpoor...................................................................................................................202
6.2 Theunderemployedandnonemployedpoor...........................................................................207
References................................................................................................................................................212
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List of tables in themain text
Table2-1SurveysusedinconstructingtheLevyInstituteMeasureofTimeandIncomePoverty............28
Table2-2Thresholdsofpersonalcareandnonsubstitutablehouseholdactivities...................................29
Table2-3Commutingtimeofemployedindividuals(weeklyhoursperadult,18to74years).................34
Table 3-1 Factors affecting the hidden poverty rate (LIMTIP minus official poverty rate): All households
....................................................................................................................................................................44
Table3-2Averageincomedeficit(nominalvaluesinnationalcurrency)andshare(inthetotalnumberof
income-poorhouseholds)ofincome-poorhouseholdsbysubgroup........................................................48
Table3-3Decompositionoftimepovertyrateofmenandwomenintime-poorhouseholds.................55
Table 3-4 Number (in thousands) and composition (in percent) of income-poor households by
employmentstatusofhousehold:OfficialversusLIMTIP..........................................................................63
Table3-5Povertyratesofhouseholdsbyemploymentstatus:Officialvs.LIMTIP....................................65
Table 3-6 Factors affecting the difference between LIMTIP and official poverty rate (hidden poverty
rate):Employedhouseholds.......................................................................................................................69
Table 3-7 Factors affecting the hidden poverty rate (LIMTIP minus official poverty rate): Employed
householdswithchildren............................................................................................................................71
Table3-8LIMTIPclassificationofemployedhouseholdsandincidenceoftimepovertyamongemployed
households(percent)..................................................................................................................................78
Table3-9Timepovertyrateofadultsinemployedtime-poorhouseholdsbytypeofhousehold,sex,and
incomepovertystatus(percent)................................................................................................................81
Table 3-10 Time deficit of time-poor adults in employed time-poor households by type of household,
sex,andincomepovertystatus(weeklyhours).........................................................................................82
Table 3-11 Number (in thousands) and composition (in percent) of income-poor households by type of
household:OfficialversusLIMTIP...............................................................................................................87
Table3-12Ratesofincomepovertyofhouseholdsbytypeofhousehold:OfficialversusLIMTIP............88
Table 3-13 Factors affecting the hidden poverty rate (difference between LIMTIP and official poverty
rate):Marriedcoupleandsinglefemale-headedhouseholds....................................................................90
Table 3-14 Time poverty rate of adults in time-poor households by type of family household, sex, and
incomepovertystatus..............................................................................................................................103
Table3-15Distributionofindividualsinhouseworktime-bindbysexandfamilytype..........................104
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Table3-16 Decompositionofthe timepoverty rateofadults intime-poorhouseholds bytypeoffamily,
incomepovertystatusandsex:Argentina...............................................................................................106
Table3-17Decompositionoftimepovertyrateofadultsintime-poorhouseholdstypeoffamily,income
povertystatusandsex:Chile....................................................................................................................108
Table3-18Decompositionoftimepovertyrateofadultsintime-poorhouseholdstypeoffamily,income
povertystatusandsex:Mexico................................................................................................................110
Table3-19Timedeficitoftime-pooradultsbyfamilytype,incomepovertystatusandsex(weeklyhours)
..................................................................................................................................................................113
Table 4-1 Factors affecting the hidden poverty rate (LIMTIP minus official poverty rate): Men, women,
children,andallindividuals......................................................................................................................124
Table4-2Decompositionoftimepovertyrateofmenandwomeninallhouseholds............................130
Table4-3Number(inthousands)andcompositionofincome-pooradultsbyemploymentstatusandsex
..................................................................................................................................................................139
Table 4-4 Distribution of adults by LIMTIP classification of income and time poverty according to
employmentstatusandsex(percent)......................................................................................................141
Table 4-5 Distribution of income-poor employed adults (18 to 74 years) by earnings quintile (percent)
..................................................................................................................................................................143
Table4-6Povertyrateandcompositionofthepoorbyearningsquintileandsex..................................144
Table4-7LIMTIPclassificationofemployedpersonsbyearningsquintileandsex:Argentina...............149
Table4-8LIMTIPclassificationofemployedpersonsbyearningsquintileandsex:Chile.......................151
Table4-9LIMTIPclassificationofemployedpersonsbyearningsquintileandsex:Mexico...................153
Table4-10Employmentandrelativemedianearningsbytypeofemploymentandsex:Argentina......157
Table4-11OfficialandLIMTIPpovertybytypeofemploymentandsex:Argentina...............................158
Table4-12Weeklyhoursofemploymentandhouseworkbytypeofemploymentandsex:Argentina.160
Table4-13Employmentandrelativemedianearningsbytypeofemploymentandsex:Chile..............161
Table4-14OfficialandLIMTIPpovertybytypeofemploymentandsex:Chile.......................................162
Table4-15Weeklyhoursofemploymentandhouseworkbytypeofemploymentandsex:Chile.........164
Table4-16Employmentandrelativemedianearningsbytypeofemploymentandsex:Mexico..........165
Table4-17OfficialandLIMTIPpovertybytypeofemploymentandsex:Mexico...................................166
Table4-18Weeklyhoursofemploymentandhouseworkbytypeofemploymentandsex:Mexico.....168
Table 5-1 Selected characteristics of current full-time (FT) workers, employable adults, and employable
LIMTIPincome-pooradults.......................................................................................................................175
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Table5-2Actualandsimulatedincomepovertyratesofhouseholds(percent).....................................177
Table 5-3 Changes in the income poverty status of households from actual to full-employment
simulation.................................................................................................................................................178
Table5-4SelectedcharacteristicsofemployableLIMTIPincome-pooradultsinhard-corepoorandother
poorhouseholds.......................................................................................................................................181
Table5-5ActualandsimulatedLIMTIPclassificationofhouseholds(percent).......................................183
Table5-6ChangesintheLIMTIPclassificationofrecipienthouseholds,actualtofull-timework(percent)
..................................................................................................................................................................185
Table5-7Official,LIMTIPandhiddenincomepovertyratesforindividuals,actualandsimulated........187
Table5-8ActualandsimulatedLIMTIPclassificationofadultsbysex(percent):Argentina...................190
Table5-9ActualandsimulatedLIMTIPclassificationofadultsbysex(percent):Chile...........................191
Table5-10ActualandsimulatedLIMTIPclassificationofadultsbysex(percent):Mexico.....................193
Table5-11Timepovertyratesofemployedmenandwomen,actualandsimulated(percent).............196
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List of figures in the main text
Figure2-1Thresholdhoursofhouseholdproduction(weeklyhoursperhousehold),Mexico.................30
Figure2-2Thresholdhoursofhouseholdproduction(weeklyhoursperhousehold),..............................31
Figure2-3Person’sshareinthetotalhoursofhouseholdproduction(percent),persons18to74years33
Figure 3-1 Incidence of income poverty: official vs. LIMTIP (percent of all households and number of
poorhouseholdsinthousandsshowninparentheses)..............................................................................43
Figure 3-2 Distribution of household income and time deficit among time-poor and officially income-
nonpoorhouseholdsbyhiddenpovertystatus(dummy=1meansthatthehouseholdishiddenpoorand
dummy=0meansthatthehouseholdisnonpoor).....................................................................................45
Figure3-3Averageincomedeficit(percentofpovertyline)ofincome-poorhouseholdsbysubgroup...50
Figure3-4LIMTIPclassificationofhouseholdsbyincomeandtimepovertystatus(percent)..................52
Figure3-5Timepovertyrateofadultsintime-poorhouseholdsbysexandincomepovertystatus........53
Figure 3-6 Decomposition of time poverty among the employed adults in time-poor households into
‘employment-only’and‘double’time-bind................................................................................................57
Figure3-7Householdtimedeficitoftime-poorhouseholdsbyincomepovertystatus............................58
Figure3-8Timedeficitoftime-pooradultsbysexandincomepovertystatus(averageweeklyhours)..59
Figure 3-9 Time deficit from employment-only time-bind of time-poor, employed adults (by sex) and
timedeficitfromothertime-bindsfacedbytime-poorwomen(weeklyhours).......................................60
Figure 3-10 Difference between the poverty rate of nonemployed and employed households (in
percentagepoints)byofficialandLIMTIPpovertylines.............................................................................65
Figure3-11DifferencebetweenLIMTIPandofficialpovertyratesforemployedhouseholdswithchildren
(LIMTIPminusofficialrate,percentagepoints)..........................................................................................67
Figure3-12Povertyratesofsingleemployedhouseholdsbysex:Officialvs.LIMTIP...............................72
Figure 3-13 Composition of the official and LIMTIP income-poor households (percent) by employment
status...........................................................................................................................................................73
Figure3-14RatiooftheLIMTIPincomedeficittoofficialincomedeficitofincome-poorhouseholds.....74
Figure 3-15 Average income deficit (percent of poverty line) of income-poor households: LIMTIP and
official..........................................................................................................................................................75
Figure 3-16 LIMTIP classificationof households by income and time poverty status (percent): employed
andnonemployed.......................................................................................................................................76
Figure3-17Timepovertyrateofhouseholdsbyemploymentandincomepovertystatus(percent)......77
Figure3-18Distributionofemployedtime-poorhouseholdsamongsubgroups(percent)......................80
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Figure 3-19 Time poverty rate of wives in dual-earner households versus employed women in single
female-headedemployedhouseholds.......................................................................................................84
Figure 3-20 Composition of the official and LIMTIP income-poor family households (percent) by type of
family..........................................................................................................................................................92
Figure 3-21 Ratio of the LIMTIP income deficit to official income deficit of income-poor family
householdsbytypeofhousehold...............................................................................................................94
Figure 3-22 Average income deficit (percent of poverty line) of income-poor households by type of
family:LIMTIPandofficial...........................................................................................................................95
Figure 3-23 LIMTIP classification of households by income and time poverty status (percent): Argentina
....................................................................................................................................................................96
Figure3-24LIMTIPclassificationofhouseholdsbyincomeandtimepovertystatus(percent):Chile......97
Figure3-25LIMTIPclassificationofhouseholdsbyincomeandtimepovertystatus(percent):Mexico..98
Figure3-26Timepovertyrateofmarriedcoupleandsinglefemale-headedfamilyhouseholdsbyincome
povertystatus.............................................................................................................................................99
Figure3-27Compositionoftime-poorhouseholdsbytypeoffamily(percent)......................................100
Figure3-28Shareofeachtypeoffamilyinthenumberoftotalandtime-poorhouseholds(percent)..101
Figure 3-29 Household time deficit of time-poor households by family type and income poverty status
(weeklyhours)...........................................................................................................................................112
Figure4-1Povertyrateofmen,women,children,andallindividuals(percent):OfficialversusLIMTIP 120
Figure 4-2 The composition of total and LIMTIP income-poor population by men, women, and children
(percent)...................................................................................................................................................123
Figure4-3DistributionofchildrenbyLIMTIPclassificationofincomeandtimepoverty(percent)........126
Figure4-4DistributionofadultsbyLIMTIPclassificationincomeandtimepovertystatus(percent)....127
Figure 4-5 Decomposition of time poverty among the employed adults into ‘employment-only’ and
‘double’time-bind....................................................................................................................................133
Figure4-6Povertyrateofemployedandnonemployedadults(percent):OfficialversusLIMTIP..........134
Figure4-7Povertyratebysexandemploymentstatus(percent):OfficialversusLIMTIP.......................136
Figure4-8LIMTIPclassificationofemployedadultsbyearningsquintile................................................147
Figure 5-1 Income deficit (percent of LIMTIP poverty line) and time deficit (weekly hours) of hard-core
andotherincome-poorhouseholds,actualandsimulated......................................................................179
Figure 5-2 Distribution of children by LIMTIP classification of income and time poverty, actual and
simulated(percent)...................................................................................................................................188
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