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Using repeated cross-sections to explore movements into and out of poverty

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  • Dang, Hai-Anh
  • Lanjouw, Peter
  • Luoto, Jill
  • McKenzie, David

Abstract

Movements in and out of poverty are of core interest to both policymakers and economists. Yet the panel data needed to analyze such movements are rare. In this paper we build on the methodology used to construct poverty maps to show how repeated cross-sections of household survey data can allow inferences to be made about movements in and out of poverty. We illustrate that the method permits the estimation of bounds on mobility, and provide non-parametric and parametric approaches to obtaining these bounds. We test how well the method works on data sets for Vietnam and Indonesia where we are able to compare our method to true panel estimates. Our results are sufficiently encouraging to offer the prospect of some insights into mobility and poverty duration in settings where historically it was judged that the data necessary for such analysis were unavailable.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 107 (2014)
Issue (Month): C ()
Pages: 112-128

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Handle: RePEc:eee:deveco:v:107:y:2014:i:c:p:112-128

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Web page: http://www.elsevier.com/locate/devec

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Keywords: Transitory and chronic poverty; Synthetic panels; Mobility;

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References

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Cited by:
  1. Inchauste, Gabriela & Azevedo, João Pedro & Olivieri, Sergio & Saavedra, Jaime & Winkler, Hernan, 2012. "When Job Earnings Are behind Poverty Reduction," World Bank - Economic Premise, The World Bank, The World Bank, issue 97, pages 1-6, November.
  2. Tom Krebs & Pravin Krishna & William Maloney, 2013. "Income Mobility and Welfare," IMF Working Papers 13/24, International Monetary Fund.
  3. Krebs, Tom & Krishna, Pravin & Maloney, William F., 2012. "Income Risk, Income Mobility and Welfare," IZA Discussion Papers 7056, Institute for the Study of Labor (IZA).
  4. Dang, Hai-Anh & Lanjouw, Peter, 2013. "Measuring poverty dynamics with synthetic panels based on cross-sections," Policy Research Working Paper Series 6504, The World Bank.
  5. Cruces, Guillermo & Lanjouw, Peter & Lucchetti, Leonardo & Perova, Elizaveta & Vakis, Renos & Viollaz, Mariana, 2011. "Intra-generational mobility and repeated cross-sections : a three-country validation exercise," Policy Research Working Paper Series 5916, The World Bank.

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