Measuring poverty at the regional level in Spain: a reflexive approach

Abstract

This article assesses the utility of adjusting the poverty threshold for regional areas of Spain and of using thresholds anchored in time. It also offers a critical review of equivalence scales as a central element in estimating poverty. To do this, data from the Income and Living Conditions Surveys from 2007 to 2012 is used. The results show that poverty rates obtained with national thresholds are strongly influenced by intra-regional inequalities in income. They also show that regional thresholds capture differences in the well-being of the population, controlling for the effects of regional disparities in economic development. In addition, they demonstrate that anchored thresholds avoid inconsistencies in poverty rates tied to changes in income levels of the general population and not to changes in socially necessary resources.