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Three Contributions From Longitudinal Data to The Analysis of Poverty Part 1: Measurement Errors and Poverty Entries and Exits

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  • Stéfan Lollivier

    (INSEE)

  • Daniel Verger

    (INSEE)

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    Abstract

    There are conceptual and empirical problems involved when measuring entries into and exits from poverty simply by comparing annual resources taken from household surveys. A lack of resources over a short period of time cannot be said to define a situation of poverty. Poverty needs to be assessed on average over a period of some years. Observation errors induce changes from one year to the next, which mistakenly suggest that the phenomenon is highly volatile. Statistical reconciliation methods can partially correct the observation errors, but the results are not very robust. Hence the corrections made are substantial: reducing the factors that appear to induce spurious effects reduces the number of exits from poverty by approximately two-thirds. The correlation between the different forms of poverty - monetary, living conditions and subjective - increases slightly, but remains low: the non-coincidence of the different forms of poverty is not an artefact.

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    File URL: http://www.insee.fr/fr/ffc/docs_ffc/ES383-384-385l.pdf
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    Bibliographic Info

    Article provided by Institut National de la Statistique et des Etudes Economiques in its journal Economie et Statistique.

    Volume (Year): 383-384-385 (2005)
    Issue (Month): (December)
    Pages: 248-260

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    Handle: RePEc:crs:ecosta:es383-384-385l

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    Keywords: Panel Data; Poverty; France;

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