IDEAS home Printed from https://ideas.repec.org/a/aoj/econom/v7y2020i1p36-41id1581.html
   My bibliography  Save this article

Socioeconomic Status Measurement: An Analysis of Incorporation of Mixed Variables into Principal Component Approach

Author

Listed:
  • Md. Nayem Dewan
  • Noor Muhammad Khan
  • PK. Md. Motiur Rahman

Abstract

Socioeconomic status of a household in Bangladesh changes overtime for many reasons. The measurement of this change is a very important tool in many aspects. This paper aims to examine the dynamic nature of wealth status in Bangladesh. In particular, we want to capture the overall wealth transition in rural area of Bangladesh from year 2004 to 2015. To calculate this transition, we construct wealth index for each of the year 2004, 2009, and 2015 using the ‘poverty analysis survey data’. This survey has conducted on the same households in each three years. Nonlinear principal component analysis (PCA) with optimal scaling using gifi method as our PCA tool is used here for wealth index construction. This method is designed to use with a data set that contains both numerical and categorical variables jointly. Then the transition of wealth is calculated using these three-wealth index. Based on the transition result, we classified each of the households into four different social groups such as non-poor, ascending poor, descending non-poor, and chronically poor.

Suggested Citation

  • Md. Nayem Dewan & Noor Muhammad Khan & PK. Md. Motiur Rahman, 2020. "Socioeconomic Status Measurement: An Analysis of Incorporation of Mixed Variables into Principal Component Approach," Economy, Asian Online Journal Publishing Group, vol. 7(1), pages 36-41.
    • Handle: RePEc:aoj:econom:v:7:y:2020:i:1:p:36-41:id:1581
    as

    Download full text from publisher

    File URL: http://asianonlinejournals.com/index.php/Economy/article/view/1581/1485
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aoj:econom:v:7:y:2020:i:1:p:36-41:id:1581. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sara Lim (email available below). General contact details of provider: http://asianonlinejournals.com/index.php/Economy/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.