The geography of disadvantage: Implications for poverty assessment and program targeting
Individuals are often thought to be more disadvantaged in higher-cost areas. As a result, geographic adjustments for local prices are embedded in many federal payments to states, localities, and individuals and have been proposed or implemented for various poverty measures.
This paper proposes a rigorous approach to assess the desirability of geographic adjustments to poverty measures by examining how well they achieve a central objective of a poverty measure: identifying the least advantaged population.
Specifically, we compare an exhaustive list of material well-being indicators of those classified as poor under the Supplemental Poverty Measure and the new Comprehensive Income Poverty Measure with and without a geographic adjustment. These wellbeing indicators are drawn from linked survey and administrative records and include material hardships, appliances owned, home quality issues, food security, public services, health, education, assets, permanent income, and mortality.
For nine of the ten domains of well-being indicators, we find that incorporating a geographic adjustment identifies a less deprived poor population. This result can be explained by local prices being positively correlated with public goods and locational amenities, which are valued by those with low incomes.
Speaker Profile
Derek Wu, Senior Lecturer, RMIT University
Derek Wu is an Assistant Professor of Public Policy and Economics at the University of Virginia.
His research interests lie in labor and public economics, focusing on policy issues relevant to low-income populations. His research has examined the causes and consequences of participation in safety-net programs, and he has also written papers measuring the incomes, consumption, and well-being of those in poverty using linked survey and administrative data.
He received his Ph.D. in 2021 from the University of Chicago’s Harris School of Public Policy, and his A.B. in 2013 from Princeton University’s School of Public and International Affairs.
Weekly seminar series
As part of our Centre's vibrant research culture, we host a weekly seminar series. Visiting and invited researchers present current research relating to the economics of health and wellbeing, and the healthcare sector. Visitors are welcome to join these sessions where discussion and debate is encouraged.
For further information on our seminar series, please contact shannon.stanwell@monash.edu
Event Details
- Date:
- 14 April 2023 at 12:00 pm – 1:00 pm
- Venue:
- In-person at Caulfield campus, Building H, Level 9, Room H9.21
- Categories:
- CHE Seminar; Health Economics
Description
Individuals are often thought to be more disadvantaged in higher-cost areas. As a result, geographic adjustments for local prices are embedded in many federal payments to states, localities, and individuals and have been proposed or implemented for various poverty measures.
This paper proposes a rigorous approach to assess the desirability of geographic adjustments to poverty measures by examining how well they achieve a central objective of a poverty measure: identifying the least advantaged population.
Specifically, we compare an exhaustive list of material well-being indicators of those classified as poor under the Supplemental Poverty Measure and the new Comprehensive Income Poverty Measure with and without a geographic adjustment. These wellbeing indicators are drawn from linked survey and administrative records and include material hardships, appliances owned, home quality issues, food security, public services, health, education, assets, permanent income, and mortality.
For nine of the ten domains of well-being indicators, we find that incorporating a geographic adjustment identifies a less deprived poor population. This result can be explained by local prices being positively correlated with public goods and locational amenities, which are valued by those with low incomes.
Speaker Profile
Derek Wu, Senior Lecturer, RMIT University
Derek Wu is an Assistant Professor of Public Policy and Economics at the University of Virginia.
His research interests lie in labor and public economics, focusing on policy issues relevant to low-income populations. His research has examined the causes and consequences of participation in safety-net programs, and he has also written papers measuring the incomes, consumption, and well-being of those in poverty using linked survey and administrative data.
He received his Ph.D. in 2021 from the University of Chicago’s Harris School of Public Policy, and his A.B. in 2013 from Princeton University’s School of Public and International Affairs.
Weekly seminar series
As part of our Centre's vibrant research culture, we host a weekly seminar series. Visiting and invited researchers present current research relating to the economics of health and wellbeing, and the healthcare sector. Visitors are welcome to join these sessions where discussion and debate is encouraged.
For further information on our seminar series, please contact shannon.stanwell@monash.edu