Study of Income and Time Substitution Based on the Human Capability Approach (Case Study: The Male Teachers in Tehran)

Considering poverty as income deprivation, neglects other types of poverty that people experience in reality. If we take poverty as capability deprivation, we can focus on other aspects of poverty beside the income poverty. Based on standard analysis of income and leisure subjects, people can substitute their income and leisure hours to increase their income and utility. According to capability approach, individual earnings are more valuable, if they originate from personal choices not his/her forced substitution leisure time for work time. This study tries to examine how to substitute time for income based on capability approach and to measure income, leisure and utility poverty lines among Tehran Men Teachers. To do this, we used a CES utility function. In addition, this study tries to recognize the attributes of people who cannot trade-off time poverty and income poverty.