MEASURING VULNERABILITY

Traditional poverty measures neglect several important dimensions of household welfare. In this paper we construct a measure of "vulnerability" which allows us to quantify the welfare loss associated with poverty as well as the loss associated with any of a variety of different sources of uncertainty. Applying our measure to a panel dataset from Bulgaria in 1994, we find that poverty and risk play roughly equal roles in reducing welfare. Aggregate shocks are more important than idiosyncratic sources of risk, but households headed by an employed, educated male are less vulnerable to aggregate shocks than are other households.


Issue Date:
2002
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/19899
PURL Identifier:
http://purl.umn.edu/19899
Total Pages:
27
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2020-10-28

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