The Levy Institute Measure of Time and Income PovertyIn addition to income inadequacies, the Levy Institute’s innovative Measure of Time and Income Poverty (LIMTIP) accounts for, and hence makes visible, the negative impact time deficits exert on living standards.
Income poverty customarily ascertains the ability of individuals and households to gain access to some minimal level of income (i.e., the poverty line), on the premise that such access ensures the fulfillment of a designated set of basic material needs. However, this approach neglects the fact that, in addition to a minimal basket of market purchases, daily reproduction of household members requires that some amount of time must be dedicated to necessary (unpaid) household production activities. Just as some households fail to gain access to sufficient income, we must also consider the possibility that households may fail to meet their basic household production requirements for lack of time. Time deficits may be so severe that, when accounted for, they bring to the fore households that are in fact in poverty but remain “hidden” from the policy radar.
Furthermore, LIMTIP builds on the supposition that, within the household, women and men do not partake equally in meeting household production requirements, nor do they face identical time deficits: existing data reveal that women contribute their time disproportionately to unpaid household activities. Accordingly, to assess inequalities between households and among individuals within households requires that we consider differentiation jointly across both income and household production dimensions. For that, it is imperative to understand how labor force participation and earnings interact with time dedicated to household production responsibilities. Such an understanding is particularly important for formulating policies that promote gender, social, and economic justice coherently and consistently.
In addition to providing a measurement framework that allows a better informed estimation of poverty rates and depth of poverty we employ a microsimulation model that is especially useful for policy impact analysis. Designed to track both income and time dimensions of inequalities, it can be used to evaluate the effectiveness of a policy intervention (or an economic event) in reduction of time and income poverty simultaneously.
The support of the United Nations Development Programme Regional Service Centre for Latin America and the Caribbean, particularly the Gender Practice, Poverty, and Millennium Development Goals areas, made the development of this framework possible.
Press Releases | February 2014
Download:Associated Program(s):The Levy Institute Measure of Time and Income Poverty The Distribution of Income and Wealth Gender Equality and the EconomyAuthor(s):Mark Primoff
One-Pager No. 45 | January 2014Official poverty lines in Korea and other countries ignore the fact that unpaid household production contributes to the fulfillment of material needs and wants that are essential to attaining a minimum standard of living. By taking household work for granted, these official estimates provide an inaccurate accounting of the breadth and depth of poverty—and can lead policymakers astray.Download:Associated Program(s):The Levy Institute Measure of Time and Income Poverty The Distribution of Income and Wealth Gender Equality and the EconomyAuthor(s):Related Topic(s):
In the Media | April 2013Latin America and Gender Equality Bulletin (UNDP), April 2013. All Rights Reserved.
In this interview, Rania Antonopoulos, a senior scholar and co-author of the research project report “Why Time Deficits Matter: Implications for the Measurement of Poverty,” discusses the importance of combining income and time poverty measurements in order to reach an effective reduction of poverty and promote more egalitarian societies.Associated Program:Author(s):
Research Project Reports | December 2012
Revisiting Poverty Measurement, Informing Policy Responses
This report is published as part of the “Undoing Knots, Innovating for Change” series, issued by the United Nations Development Programme (UNDP) Regional Centre for Latin America and the Caribbean through its Gender Practice Area. It includes findings from a UNDP-supported research project undertaken in 2011 by the Levy Economics Institute with the objective of proposing an alternative to official income poverty measures, one that takes into account household production (unpaid work) requirements—an issue still largely ignored by official poverty estimates. This has significant consequences for policymaking. The resulting Levy Institute Measure of Time and Income Poverty is a two-dimensional measure that jointly tracks income gaps and time deficits. Using this alternative measure, the authors present selected results of empirical estimates of poverty and compare them with official income poverty rates for Argentina, Chile, and Mexico, with a focus on the study's policy implications.Download:Associated Program:Author(s):
Public Policy Brief No. 126 | November 2012
Why Time Deficits Matter for Poverty
We cannot adequately assess how much or how little progress we have made in addressing the condition of the most vulnerable in our societies, or provide accurate guidance to policymakers intent on improving each individual’s and household’s ability to reach a basic standard of living, if we do not have a reliable means of measuring who is being left behind. With the support of the United Nations Development Programme and the International Labour Organization, Senior Scholars Rania Antonopoulos and Ajit Zacharias and Research Scholar Thomas Masterson have constructed an alternative measure of poverty that, when applied to the cases of Argentina, Chile, and Mexico, reveals significant blind spots in the official numbers.Download:Associated Program(s):The Levy Institute Measure of Time and Income Poverty The Distribution of Income and Wealth Gender Equality and the EconomyAuthor(s):Related Topic(s):
One-Pager No. 34 | October 2012
The Importance of Time Deficits
Standard poverty measurements assume that all households and individuals have enough time to engage in the unpaid cooking, cleaning, and caregiving that are essential to attaining a bare-bones standard of living. But this assumption is false. With the support of the United Nations Development Programme and the International Labour Organization, Senior Scholars Rania Antonopoulos and Ajit Zacharias and Research Scholar Thomas Masterson have constructed an alternative measure of poverty that, when applied to the cases of Argentina, Chile, and Mexico, reveals significant blind spots in the official numbers.Download:Associated Program(s):Author(s):Related Topic(s):
Research Project Reports | August 2012
Implications for the Measurement of Poverty
Customarily, income poverty incidence is judged by the ability of individuals and households to gain access to some level of minimum income based on the premise that such access ensures the fulfillment of basic material needs. However, this approach neglects to take into account the necessary (unpaid) household production requirements without which basic needs cannot be fulfilled. In fact, the two are interdependent and evaluation of standards of living ought to consider both dimensions.
This report provides an analytical and empirical framework that includes unpaid household production work in the very conceptualization and calculations of poverty: the Levy Institute Measure of Time and Income Poverty (LIMTIP). Based on this new analytical framework, empirical estimates of poverty are presented and compared with those calculated according to the official income poverty lines for Argentina, Chile, and Mexico. In addition, an employment-generating poverty-reduction policy is simulated in each country, and the results are assessed using the official and LIMTIP poverty lines.
The undertaking of this work was initiated as a result of joint discussions and collaboration between the Levy Economics Institute and United Nations Development Programme Regional Service Centre for Latin America and the Caribbean, particularly the Gender Practice, Poverty, and Millennium Development Goals areas. It addresses an identified need to expand the knowledge base, conceptually, analytically, and empirically, on the links between (official) income poverty and the time allocation of households between paid and unpaid work.Download:Associated Program(s):Author(s):Related Topic(s):
Working Paper No. 727 | July 2012
The method for simulation of labor market participation used in the LIMTIP models for Argentina, Chile, and Mexico is described. In each case, all eligible adults not working full-time were assigned full-time jobs. In all households that included job recipients, the time spent on household production was imputed for everyone included in the time-use survey. The feasibility of assessing the quality of the simulations is discussed. For each simulation, the recipient group is compared to the donor group, both in terms of demographic similarity and in terms of the imputed usual hours, earnings, and household production produced in the simulation. In each case, the simulations are of reasonable quality, given the nature of the challenges in assessing their quality.Download:Associated Program(s):Author(s):Related Topic(s):
Working Paper No. 692 | October 2011
The quality of match of three statistical matches used in the LIMTIP estimates for Argentina, Chile, and Mexico is described. The first match combines the 2005 Uso del Tiempo (UT 2005) with the 2006 Encuesto Annual de Hogares (EAH) for Argentina. The second match combines the 2007 Encuesta Experimental sobre Uso del Tiempo en el Gran Santiago (EUT 2007) with the 2006 Encuesta Caracteristización Socioeconómica Nacional (CASEN 2006) for Chile. The third match combines the 2008 Encuesta Nacional de Ingresos y Gastos de los Hogares (ENIGH 2008) with the 2009 Encuesta Nacional sobre Uso del Tiempo (ENUT 2009) for Mexico. In each case, the alignment of the two datasets is examined, after which various aspects of the match quality are described. In each case, the matches are of high quality, given the nature of the source datasets.Download:Associated Program(s):Author(s):Related Topic(s):
Working Paper No. 690 | October 2011
Official poverty thresholds are based on the implicit assumption that the household with poverty-level income possesses sufficient time for household production to enable it to reproduce itself as a unit. Several authors have questioned the validity of the assumption and explored alternative methods to account for time deficits in the measurement of poverty. I critically review the alternative approaches within a unified framework to highlight the commonalities and relative merits of individual approaches. I also propose a two-dimensional, time-income poverty measure that accounts for intrahousehold disparities in the division of household labor and briefly discuss its uses in thinking about antipoverty policies.Download:Associated Program(s):Author(s):Related Topic(s):