The Direct Measurement of Welfare Levels : How Much Does It Cost to Make Ends Meet ?

نویسندگان

  • Sheldon Danziger
  • Michael Taussig
  • Eugene Smolensky
چکیده

We adopt a direct approach to measuring the welfare levels of households with different incomes and varying characteristics by using households' responses to subjective questions about their evaluations of their own economic status. We use this approach to analyze newly available u.S. data on subjective well-being. We address such interrelated questions as how to rank households by welfare level, how to make comparisons of households of different size and composition, and how to establish a set of poverty lines. Two differences between our empirical results and those using the official poverty lines stand out. First, the equivalence scale derived from the subjective data shows small differences in needs for households with an aged head and for larger families and large differences for households headed by females. This pattern is reversed in the official poverty lines. Second, the income level associated with making ends meet lies considerably above the u.S. poverty level.

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تاریخ انتشار 2007