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The relationship between poverty and inequality: Resource constraint mechanisms
Lin Yang
November 2018
Paper No' CASE/212:
Full Paper (pdf)

JEL Classification: I30; I32; D31; D60; I38

Tags: poverty; inequality; housing costs; imputed rent; measurement

This paper examines how inequality from the interaction of income and housing circumstances changes the relative position of households in the income distribution, and influences the incidence and socio-demographic profile of those in housing-induced poverty. Three measures of income are used – the standard Before Housing Costs (BHC) measure, and the After Housing Costs (AHC) and With Housing Income (WHI) measures which adjust for housing in two different ways – to analyse the net effect of housing costs and advantages on poverty and inequality, and the underlying distributional changes linking the two.