Poverty is generally defined as income or expenditure insufficiency, but the economic condition of a household also depends on its real and financial asset holdings. This paper investigates measures of poverty that rely on indicators of household net worth. We review and assess two main approaches followed in the literature: income–net worth measures and asset-poverty. We provide fresh cross-national evidence based on data from the Luxembourg Wealth Study. (author abstract)
This article was previously published as a working paper by the Institute for Research on Poverty at the University of Wisconsin.