Leveraging Policy Data and Harmonized Survey Data to Protect Health and Economic Security:...
Inequality
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20/01/2011
Free market think tank proposes new poverty measures
Measures of poverty should be decoupled from average earnings, argues Kristian Niemietz in a new monograph, A New Understanding of Poverty, published by the Institute of Economic Affairs (IEA). Niemietz argues that one perverse result of such relative poverty measures among many is that poverty often declines in a serious recession when the better paid lose their jobs. The author proposes an entirely new way of measuring poverty and argues that if this measure were applied, public policy would orientate itself towards creating the conditions that allowed the poor to become better off. The book can be purchased from the IEA.
See also:
The review of A New Understanding of Poverty by Stewart Lansley and Joanna Mack.Category: Reports -
18/01/2011
The ‘squeezed middle’ and the ‘poor’
by Stewart Lansley
Middle and low income households have missed out on increases in prosperity in the last three decades with the gains going to the rich. As a result the numbers vulnerable to poverty are rising.
In his first speech after becoming Labour’s new leader, Ed Miliband pledged to stand up for the ‘squeezed middle’. There is nothing especially new about Britain’s political leaders attempting to woo the central layer of British society. Mrs Thatcher won the 1979 election by targeting what she called ‘middle England’ and eighteen years later, Labour won the political battle for the centre ground with an appeal to what the popular press dubbed ‘Sierra Man’ or ‘Worcester Woman’.
Category: Articles -
14/01/2011
Inequality illusion
by Stewart Lansley
Most people think they are relatively poorer than they actually are, with the best off being more likely to think they are actually in the middle of the income hierarchy. The poor have the best estimates of their relative position.
In a study of middle income Britain conducted by YouGov for the TUC, a representative sample of the population's income range was asked: 'If everyone's income was arranged in order from lowest to highest, where do you think your income would be on this scale?' (Lansley, 2009). They were offered the choice of 'Towards the bottom', 'Below the middle', 'In the middle', 'Above the middle' or 'Towards the top'. The results are shown in Table 1. All participants have been divided into five income bands (quintiles) on the basis of their actual income. Each group represents a fifth of the population. Their actual position is then compared with their perceived position.
Category: Articles
