| Abstract: | Subsistence is analysed as an endogenous variable, contraryto its conventional exogenous treatment. It is postulated thatthe subsistence-livers perceive their own standard of subsistence,direct their earnings behaviour towards attaining, maintainingor exceeding this standard and, thus, reveal the standard throughthis behaviour. The labour supply function of the working poor,which displays a forward-falling segment at low wages and anupward-rising segment at higher wages, is hypothesised to offermeasures of subsistence and survival standards. The conceptsare rationalised using Sen's concept of ‘freedom of choice’and Arrow's concept of ‘freedom as flexibility’.It is argued that at below-subsistence living, individuals lackfreedom of flexibility in choosing their preferences and thussuffer the loss of freedom of choice—while subsistenceoffers a reasonable minimum of this freedom, the freedom iscompletely lost at the lowest survival standard. |
University of Rhode Island.