A Case for Measures of Asset Poverty

摘要

Iceland (this issue) defines poverty as economic deprivation and focuses on measures of income poverty. We agree with Iceland that there is a strong conceptual rationale for income-based measures, as well as some operational advantages, and that these measures are understood and accepted by researchers, policy makers, and the public. However, we argue here that there is an important place for asset-based measures of poverty as well. This emphasis on assets flows from work by Sherraden (1991). Making use of the alternative conceptions of poverty that Iceland has identified, we propose that measures of asset poverty are important indicators of economic deprivation, social exclusion, and perhaps capability deprivation. We close with some recommendations about using measures of poverty.