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Migration, poverty, and housing in Honduras

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  • Paul Makdissi
  • Quentin Wodon

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Abstract

Welfare comparisons may be sensitive to the assumptions made about economies of scale within households. This paper uses recent advances in sequential stochastic dominance techniques to show how to test for the robustness of poverty and housing quality comparisons to assumptions about economies of scale. The method is applied to a comparison of migrant and non-migrant households in Honduras. While simple comparisons based on per capita income and the estimated rental value of the dwelling suggest that migrants do better than non-migrants for poverty, but worse for housing quality, none of the two groups is found to dominate the other for reasonable welfare thresholds when assumptions regarding economies of scale are relaxed.

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Bibliographic Info

Article provided by University of Chile, Department of Economics in its journal Estudios de Economia.

Volume (Year): 31 (2004)
Issue (Month): 1 Year 2004 (June)
Pages: 5-20

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Handle: RePEc:udc:esteco:v:31:y:2004:i:1:p:5-20

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Web page: http://www.econ.uchile.cl/
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Keywords: Migration; poverty; housing; equivalence scales.;

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  1. Burkhauser, Richard V. & Smeeding, Timothy M. & Merz, Joachim, 1994. "Relative Inequality and Poverty in Germany and the United States Using Alternative Equivalence Scales," MPRA Paper 16295, University Library of Munich, Germany.
  2. Phipps, S.A., 1990. "Measuring Poverty Among Canadian Households: Sensitivity To Choice Of Measure And Scale," Department of Economics at Dalhousie University working papers archive 90-07, Dalhousie, Department of Economics.
  3. Duclos, Jean-Yves & Mercader-Prats, Magda, 1999. "Household Needs and Poverty: With Application to Spain and the U.K," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 45(1), pages 77-98, March.
  4. Duclos, J. & Makdissi, P., 1999. "Sequential Stochastic Dominance and the Robustness of Poverty Orderings," Papers 99/6, New South Wales - School of Economics.
  5. Davidson, Russell & Duclos, Jean-Yves, 1998. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Cahiers de recherche 9805, Université Laval - Département d'économique.
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  7. Chambaz, Christine & Maurin, Eric, 1998. "Atkinson and Bourguignon's Dominance Criteria: Extended and Applied to the Measurement of Poverty in France," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(4), pages 497-513, December.
  8. Bourguignon, Francois, 1989. "Family size and social utility : Income distribution dominance criteria," Journal of Econometrics, Elsevier, vol. 42(1), pages 67-80, September.
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  11. Atkinson, Anthony B & Bourguignon, Francois, 1982. "The Comparison of Multi-Dimensioned Distributions of Economic Status," Review of Economic Studies, Wiley Blackwell, vol. 49(2), pages 183-201, April.
  12. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  13. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Equivalence Scale Relativities and the Extent of Inequality and Poverty," Economic Journal, Royal Economic Society, vol. 102(414), pages 1067-82, September.
  14. Foster, James E & Shorrocks, Anthony F, 1988. "Poverty Orderings," Econometrica, Econometric Society, vol. 56(1), pages 173-77, January.
  15. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Differences in Needs and Assessment of Income Distributions," Bulletin of Economic Research, Wiley Blackwell, vol. 44(2), pages 77-124, April.
  16. de Vos, Klaas & Zaidi, M Asghar, 1997. "Equivalence Scale Sensitivity of Poverty Statistics for the Member States of the European Community," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(3), pages 319-33, September.
  17. Fishburn, Peter C. & Willig, Robert D., 1984. "Transfer principles in income redistribution," Journal of Public Economics, Elsevier, vol. 25(3), pages 323-328, December.
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