scholarly journals An Improved Means-Testing Formula for Better Targeting

2020 ◽  
Vol 15 (5) ◽  
pp. 112-129

In Russia, means testing is used to identify low-income households and measure poverty headcount as well as to establish the eligibility of the applicants to targeted social assistance. The current means-testing formula, however, is restricted to comparing the per capita income with the cost of the so-called minimum consumer basket or the standard subsistence income. The authors propose an improved means-testing formula which is claimed to measure the wealth and consumption needs of a household more accurately and more equitably, as it includes a revised equivalence scale and а filter for the possession of certain valuable assets. Based on a representative household survey, which covers three subfederal jurisdictions and has been specifically designed to test the performance of the new formula, the authors measure the contribution of each of the proposed formula modifications and the combined effect of all modifications upon the overall poverty headcount and the total income gap as well as the effects upon the poverty status of selected categories of households. Even though during the modeling phase the poverty threshold had to be raised by 12–16% against the official poverty line effective in the respective jurisdictions in order to eliminate the influence of the proposed equivalence scale on the poverty headcount, the ultimate effect of the new formula, which combines the new equivalence scale and several property filters, is a 25% reduction of poverty. This reduction is mainly due to sorting out the households that own excessive property or cars from the low-income category.

2017 ◽  
Vol 44 (8) ◽  
pp. 1092-1105
Author(s):  
Malgorzata Kalbarczyk-Steclik ◽  
Rafal Mista ◽  
Leszek Morawski

Purpose The purpose of this paper is to calculate the subjective equivalence scale and poverty rates for Poland and compare them to equivalence scales in Eastern and Western Europe. Design/methodology/approach The analysis is based on European Union Statistics on Income and Living Conditions data for 2005-2012. In particular, the authors capture the minimum needs income question and, knowing the minimum needs income of each individual’s observation, apply OLS regression controlling for income and household structure to estimate the poverty threshold, equivalence scales and poverty. Findings The subjective equivalence scales for the Euro Zone are constant for the period 2004-2012 and less stable for the CEE countries. The child cost in relation to the cost brought by an additional adult is higher in the CEE countries than in the Euro Zone countries. The subjective poverty rates are lower than the OECD rates. The only exceptions are Latvia, Estonia and Bulgaria. Originality/value The authors extend the analysis made by Bishop et al. (2014) by adding data for the years after 2007 and countries outside the Euro Zone.


Author(s):  
Phindile Mdluli

Poverty remains a critical and complex phenomenon in developing countries, South Africa included. Over the years, poverty has escalated significantly, particularly in Africa, while it has declined in most developed regions. The worsening statistics in Africa have raised concerns of a lack of understanding of poverty among policymakers and governments. In South Africa, poverty has been increasing, with more than 50 percent of households living in poverty. Additionally, approximately 26 percent of females live in extreme poverty, while at the same time the country is experiencing a growing trend of female-headed households continually identified as vulnerable to the indignities of poverty compared to male-headed households. Although poverty in South Africa has been studied extensively, existing literature shows that it is still a debatable topic, since the dynamics have not improved much, but rather worsened in recent years particularly post-apartheid. Using the 2018 general household survey data with a sample of 19 219 observations collected by Statistics South Africa, the primary objective of the study is to examine the determinants of poverty among female-headed households in South Africa. The study uses the following statistical methods: descriptive statistics, cross-tabulations and a binary logistic regression. The estimated results show that factors such as education level, employment status, age, gender, race, household size and marital status determine the poverty status of female-headed households. Females experience higher levels of poverty when compared to their male counterpart using the upper bound poverty line. Keywords: Poverty, household, female-headed household, male-headed households, South Africa


2021 ◽  
Vol 20 (1) ◽  
Author(s):  
Augustin Ntembe ◽  
Regina Tawah ◽  
Elkanah Faux

Abstract Background The bulk of health care financing in Cameroon is derived from out-of-pocket payments. Given that poverty is pervasive, with a third of the population living below the poverty line, health care financing from out-of-pocket payments is likely to have redistributive and equity effects. In addition, out-of-pocket payments on health care can limit the ability of households to afford non-healthcare goods and services. Method The study estimates the Kakwani index for analyzing tax progressivity and applies the model developed by Aronson, Johnson, and Lambert (1994) to measure the redistributive effects of health care financing using data from the 2014 Cameroon Household Survey. The estimated indexes measure the extent of the progressivity of health care payments and the reranking that results from the payments. Results The results indicate that out-of-pocket payments for health care in Cameroon in 2014 represented a significant share of household prepayment income. The results also show some evidence of inequity as few people change ranks after payment despite the slight progressivity of health care out-of-pocket payments. Conclusion The existence of some disparities among income groups implies that the burdens of ill-health and out-of-pocket payments are unequal. The detected disparities within income groups can be reduced by targeting low-income groups through increases in government expenditures on health care and pro-poor prioritization of the expenditures.


2021 ◽  
Vol 3 (4) ◽  
pp. 322-334
Author(s):  
Emma Legaspi Ballad ◽  
Cecilia Balagtas Mangabat

Household survey interviews were conducted to randomly selected 280 respondents in order to understand the socio-economic profile and livelihood structures of coastal villagers, as well as to evaluate the extent of their knowledge of, awareness of, and participation in mangrove rehabilitation projects in Cagayan Province, Philippines. The perceptions of the respondents of the non-market goods and services (i.e., the indirect and non-use values) of mangroves were evaluated through the use of proxy attitudinal statements. The results showed that the majority of the respondents were fishers, which confirmed that the households depended largely on coastal resources for their livelihoods. The respondents were from low-income households, with most of them below the poverty threshold level for the province. Despite this, the respondents displayed high levels of awareness and knowledge of mangroves in the area. The results further showed that the respondents recognized the value of protecting and preserving the mangrove ecosystem; however, there was an exposition of disagreement for statements that contained the phrases “pay”, “cost”, or “money”. This result inferred that respondents were reasonably sensitive with regards to conservation when it involves monetary payment, given their socio-economic conditions. Nevertheless, the possibility that contributions could be in-kind could be explored for further studies. The information generated from this study is an input to future valuation researches in the area.


2021 ◽  
pp. 1-10
Author(s):  
Christina Zorbas ◽  
Ruby Brooks ◽  
Rebecca Bennett ◽  
Amanda Lee ◽  
Josephine Marshall ◽  
...  

Abstract Objective: To compare the cost and affordability of two fortnightly diets (representing the national guidelines and current consumption) across areas containing Australia’s major supermarkets. Design: The Healthy Diets Australian Standardised Affordability and Pricing protocol was used. Setting: Price data were collected online and via phone calls in fifty-one urban and inner regional locations across Australia. Participants: Not applicable. Results: Healthy diets were consistently less expensive than current (unhealthy) diets. Nonetheless, healthy diets would cost 25–26 % of the disposable income for low-income households and 30–31 % of the poverty line. Differences in gross incomes (the most available income metric which overrepresents disposable income) drove national variations in diet affordability (from 14 % of the median gross household incomes in the Australian Capital Territory and Northern Territory to 25 % of the median gross household income in Tasmania). Conclusions: In Australian cities and regional areas with major supermarkets, access to affordable diets remains problematic for families receiving low incomes. These findings are likely to be exacerbated in outer regional and remote areas (not included in this study). To make healthy diets economically appealing, policies that reduce the (absolute and relative) costs of healthy diets and increase the incomes of Australians living in poverty are required.


2014 ◽  
Vol 84 (5-6) ◽  
pp. 244-251 ◽  
Author(s):  
Robert J. Karp ◽  
Gary Wong ◽  
Marguerite Orsi

Abstract. Introduction: Foods dense in micronutrients are generally more expensive than those with higher energy content. These cost-differentials may put low-income families at risk of diminished micronutrient intake. Objectives: We sought to determine differences in the cost for iron, folate, and choline in foods available for purchase in a low-income community when assessed for energy content and serving size. Methods: Sixty-nine foods listed in the menu plans provided by the United States Department of Agriculture (USDA) for low-income families were considered, in 10 domains. The cost and micronutrient content for-energy and per-serving of these foods were determined for the three micronutrients. Exact Kruskal-Wallis tests were used for comparisons of energy costs; Spearman rho tests for comparisons of micronutrient content. Ninety families were interviewed in a pediatric clinic to assess the impact of food cost on food selection. Results: Significant differences between domains were shown for energy density with both cost-for-energy (p < 0.001) and cost-per-serving (p < 0.05) comparisons. All three micronutrient contents were significantly correlated with cost-for-energy (p < 0.01). Both iron and choline contents were significantly correlated with cost-per-serving (p < 0.05). Of the 90 families, 38 (42 %) worried about food costs; 40 (44 %) had chosen foods of high caloric density in response to that fear, and 29 of 40 families experiencing both worry and making such food selection. Conclusion: Adjustments to USDA meal plans using cost-for-energy analysis showed differentials for both energy and micronutrients. These differentials were reduced using cost-per-serving analysis, but were not eliminated. A substantial proportion of low-income families are vulnerable to micronutrient deficiencies.


Author(s):  
Mesran Mesran ◽  
Suginam Suginam ◽  
Surya Darma Nasution ◽  
Andsyah Putera Utama Siahaan

Community Health Insurance is one of the government programs for the people of Indonesia in obtaining treatment services at Puskesmas. The program is very helpful for people who are low income and live below the poverty line. Indicators for the government in providing this service consists of 10 (ten) criteria that are House Ownership Status, Floor Area per Household Member, Type of Floor of House, Type of Wall House, Lighting House Used, Fuel Used, Frequency Of Eating In A Day, Ability Buy meat/chicken/milk in a week, Employment of head of household, Education of head of household. In the application, of course, has constraints in deciding who the participants who get the Jamkesmas service. With the application of one of Multi-Criteria Decision Making (MCDM) able to overcome obstacles faced by government. Some methods of MCDM such as Simple Additive Weighting(SAW), Weighted Product(WP), Weighted Sum Model(WSM) can solve this problem. By applying the WSM is relatively easy and fast, is believed to be able to get the best results.


2021 ◽  
pp. 135406882110119
Author(s):  
Matthew Polacko

Previous research into the relationship between income inequality and turnout inequality has produced mixed results, as consensus is lacking whether inequality reduces turnout for all income groups, low-income earners, or no one. Therefore, this paper builds on this literature by introducing supply-side logic, through the first individual-level test of the impact that income inequality (moderated by policy manifesto positions) has on turnout. It does so through multilevel logistic regressions utilizing mixed effects, on a sample of 30 advanced democracies in 102 elections from 1996 to 2016. It finds that higher levels of income inequality significantly reduce turnout and widen the turnout gap between rich and poor. However, it also finds that when party systems are more polarized, low-income earners are mobilized the greatest extent coupled with higher inequality, resulting in a significantly reduced income gap in turnout. The findings magnify the negative impacts income inequality can exert on political behavior and contribute to the study of policy offerings as a key moderating mechanism in the relationship.


SAGE Open ◽  
2021 ◽  
Vol 11 (2) ◽  
pp. 215824402110278
Author(s):  
Gentian Qejvanaj

Social assistance is a cash transfer program targeting the poorest households. China has created the Dibao (DB), meaning minimum livelihood guarantee, the most extensive unconditional cash transfer program globally with over 70 million people covered, whereas in Albania, the Ndhime Ekonomike (NE) meaning financial help covers around 15% of the total working-age population. Both programs are means-tested, have strict requirements for eligibility, and have been enlarged and modified in time to improve targeting and tackling leakage. In this article, we will look at similarities and common issues first, and then calculate the cost of enlarging both programs to all working-age population with no means-testing. We argue that a UBI (universal basic income) can increase private expenditure in health and education while costing less than 1% of gross domestic product (GDP) in both countries’ rural areas. We will conclude by looking at how the COVID-19 outbreak is pushing developing countries toward a UBI by first adopting a temporary basic income (TBI).


2019 ◽  
Vol 34 (4) ◽  
pp. 282-288 ◽  
Author(s):  
Manuela De Allegri ◽  
Chris Makwero ◽  
Aleksandra Torbica

Abstract Our study estimated the full economic cost of implementing performance-based financing [PBF, the Support for Service Delivery Integration Performance-Based Incentives (SSDI-PBI) programme], as a means of first introducing strategic purchasing in a low-income setting, Malawi. Our analysis distinguished design from implementation costs and traces costs across personnel and non-personnel cost categories over the 2012–15 period. The full cost of the SSDI-PBI programme amounted to USD 3 402 187, equivalent to USD 6.46 per targeted beneficiary. The design phase accounted for about one-third (USD 1 161 332) of the total costs, while the incentives (USD 1 140 436) represented about one-third of the total cost of the intervention and about half the cost of the implementation phase. With a cost of USD 1 605 178, personnel costs represented the dominant cost category. Our study indicated that the introduction of PBF entailed consumption of a substantial amount of resources, hence representing an important opportunity cost for the health system.


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