Measuring inequalities: do household surveys paint a realistic picture?
AbstractThe paper addresses the issue of the accuracy of standard-of-living measurements using household survey data. First, it highlights the fact that lighter data collection processes in some developing countries have added to measurement errors in consumption and income aggregates measurement errors. The paper reasserts the need to apply reference guidelines to the measurement of household consumption in order to compute comparable distribution indicators across countries and over time. Second, it contends that it is hard to analyze inequality solely from consumption patterns without taking income and savings into account. Two solutions are proposed for the correction of income measurement errors: by using savings declarations and by implementing a multiple imputation procedure. The results are based on a careful analysis of the EPM93 survey of Madagascar whose design is quite close to the LSMS household surveys, and the ENV98 survey of Côte d'Ivoire representative of surveys conducted nowadays in most Sub-Saharan African countries.
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Bibliographic InfoPaper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/5143.
Date of creation: 2010
Date of revision:
Publication status: Published in Review of Income and Wealth, 2010, Vol. 56, no. 3. pp. 519-538.Length: 19 pages
household survey; inequality; missing data;
Other versions of this item:
- Charlotte Guénard & Sandrine Mesplé-Somps, 2010. "Measuring Inequalities: Do Household Surveys Paint A Realistic Picture?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(3), pages 519-538, 09.
- C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
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