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How to Reduce the Impact of Equivalence Scales on Poverty Measurement: Evidence from Turkey

Author

Listed:
  • Gianni Betti

    (Siena University)

  • Mehmet Ali Karadag

    (Turkish Statistical Institute)

  • Ozlem Sarica

    (Turkish Statistical Institute)

  • Baris Ucar

    (Turkish Statistical Institute
    Hacettepe University)

Abstract

The main aim of the paper is to contribute to the poverty measurement literature by demonstrating a method to reduce the impact of equivalence scales in poverty measurement. This is accomplished by choosing the most appropriate reference household type. The results showed that one adult household is certainly not suitable for being the reference household type. When one adult household is set as the reference, in the range of no equivalence scale and per capita equivalence scale, poverty head count ratio changes from 1 to 48 %, showing the huge effect of the equivalence scale choice. Also the analyses at household size level showed that one adult household type is not convenient to be the reference household type. On the other hand, no clear distinction could be made between central household types, but the importance of choosing a household type close to the center was demonstrated for Turkish data.

Suggested Citation

  • Gianni Betti & Mehmet Ali Karadag & Ozlem Sarica & Baris Ucar, 2017. "How to Reduce the Impact of Equivalence Scales on Poverty Measurement: Evidence from Turkey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(3), pages 1023-1035, July.
    • Handle: RePEc:spr:soinre:v:132:y:2017:i:3:d:10.1007_s11205-016-1335-0
    DOI: 10.1007/s11205-016-1335-0
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    References listed on IDEAS

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    Cited by:

    1. Martina Mysíková & Tomáš Želinský & Thesia I. Garner & Kamila Fialová, 2022. "Subjective equivalence scales in Eastern versus Western European countries," Contemporary Economic Policy, Western Economic Association International, vol. 40(4), pages 659-676, October.
    2. Betti Gianni & Karadag Mehmet Ali & Sarica Ozlem & Ucar Baris, 2017. "Regional differences in equivalence scales in Turkey," Экономика региона, CyberLeninka;Федеральное государственное бюджетное учреждение науки «Институт экономики Уральского отделения Российской академии наук», vol. 13(1), pages 63-69.
    3. Raziye Selim & Gizem Kaya, 2018. "The Changes of Cost of Children for Turkey by Using Income-Dependent Equivalence Scales," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(2), pages 803-824, September.

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    More about this item

    Keywords

    Measurement of poverty; Equivalence scales; Reference household type; Turkey;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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