The relationship between poverty and inequality: Resource constraint mechanisms

Lin Yang

Published 23 November 2018

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.