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Estimating Poverty and Inequality in the Absence of Consumption Data: An Application to the Middle East and North Africa

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Listed:
  • Ragui Assaad

    (University of Minnesota)

  • Caroline Krafft
  • Hanan Nazier
  • Racha Ramadan
  • Atiyeh Vahidmanesh
  • Sami Zouari

Abstract

Measures of consumption and poverty are critical metrics of the wellbeing of individuals, their households, communities, and countries. Collecting data on consumption and poverty is challenging and costly, and therefore these measures are only infrequently available in survey data. In this paper, we demonstrate how information commonly available in household surveys can be used to impute consumption, even recovering the original variance, which is crucial for assessments of poverty and inequality. Our application adds consumption estimates to the publicly available Labor Market Panel Surveys for Egypt, Jordan, and Tunisia, which can act as a valuable resource for researchers interested in the intersection of inequality, poverty, and a host of labor market behaviors in the Middle East and North Africa.

Suggested Citation

  • Ragui Assaad & Caroline Krafft & Hanan Nazier & Racha Ramadan & Atiyeh Vahidmanesh & Sami Zouari, 2017. "Estimating Poverty and Inequality in the Absence of Consumption Data: An Application to the Middle East and North Africa," Working Papers 1100, Economic Research Forum, revised 05 2017.
    • Handle: RePEc:erg:wpaper:1100
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    1. Ragui Assaad & Caroline Krafft & John Roemer & Djavad Salehi-Isfahani, 2016. "Inequality of Opportunity in Income and Consumption: the Middle East and North Africa Region in Comparative Perspective," Working Papers 1003, Economic Research Forum, revised May 2016.
    2. Dang,Hai-Anh H. & Lanjouw,Peter F. & Serajuddin,Umar & Dang,Hai-Anh H. & Lanjouw,Peter F. & Serajuddin,Umar, 2014. "Updating poverty estimates at frequent intervals in the absence of consumption data : methods and illustration with reference to a middle-income country," Policy Research Working Paper Series 7043, The World Bank.
    3. Agostini, Claudio A. & Brown, Philip H. & Roman, Andrei C., 2010. "Poverty and Inequality Among Ethnic Groups in Chile," World Development, Elsevier, vol. 38(7), pages 1036-1046, July.
    4. Paolo Verme & Branko Milanovic & Sherine Al-Shawarby & Sahar El Tawila & May Gadallah & Enas Ali A. El-Majeed, 2014. "Inside Inequality in the Arab Republic of Egypt : Facts and Perceptions across People, Time, and Space," World Bank Publications - Books, The World Bank Group, number 17583, December.
    5. Francisco Ferreira & Jérémie Gignoux & Meltem Aran, 2011. "Measuring inequality of opportunity with imperfect data: the case of Turkey," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(4), pages 651-680, December.
    6. Ragui Assaad & Caroline Krafft, 2013. "The Egypt labor market panel survey: introducing the 2012 round," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-30, December.
    7. Astrid Mathiassen, 2009. "A model based approach for predicting annual poverty rates without expenditure data," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 7(2), pages 117-135, June.
    8. Ragui Assaad & Caroline Krafft & John Roemer & Djavad Salehi-Isfahani, 2016. "Inequality of Opportunity in Income and Consumption in Egypt," Working Papers 1002, Economic Research Forum, revised May 2016.
    9. Ragui Assaad & Samir Ghazouani & Caroline Krafft & Dominique J. Rolando, 2016. "Introducing the Tunisia Labor Market Panel Survey 2014," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-21, December.
    10. Alessandro Tarozzi & Angus Deaton, 2009. "Using Census and Survey Data to Estimate Poverty and Inequality for Small Areas," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 773-792, November.
    11. Elbers, Chris & Fujii, Tomoki & Lanjouw, Peter & Ozler, Berk & Yin, Wesley, 2007. "Poverty alleviation through geographic targeting: How much does disaggregation help?," Journal of Development Economics, Elsevier, vol. 83(1), pages 198-213, May.
    12. Ishac Diwan, 2014. "Understanding Revolution In The Middle East: The Central Role Of The Middle Class," World Scientific Book Chapters, in: Ishac Diwan (ed.), UNDERSTANDING THE POLITICAL ECONOMY OF THE ARAB UPRISINGS, chapter 3, pages 29-56, World Scientific Publishing Co. Pte. Ltd..
    13. Hentschel, Jesko, et al, 2000. "Combining Census and Survey Data to Trace the Spatial Dimensions of Poverty: A Case Study of Ecuador," The World Bank Economic Review, World Bank, vol. 14(1), pages 147-165, January.
    14. Tara Bedi & Aline Coudouel & Kenneth Simler, 2007. "More Than a Pretty Picture : Using Poverty Maps to Design Better Policies and Interventions," World Bank Publications - Books, The World Bank Group, number 6800, December.
    15. Dabalen, Andrew & Graham, Errol & Himelein, Kristen & Mungai, Rose, 2014. "Estimating poverty in the absence of consumption data : the case of Liberia," Policy Research Working Paper Series 7024, The World Bank.
    16. Jean-Yves Duclos & Abdelkrim Araar, 2006. "Poverty and Equity," Economic Studies in Inequality, Social Exclusion, and Well-Being, Springer, number 978-0-387-33318-2, Fall.
    17. Assaad, Ragui (ed.), 2014. "The Jordanian Labor Market in the New Millennium," OUP Catalogue, Oxford University Press, number 9780198702054, Decembrie.
    18. Larrea, Carlos & Kawachi, Ichiro, 2005. "Does economic inequality affect child malnutrition? The case of Ecuador," Social Science & Medicine, Elsevier, vol. 60(1), pages 165-178, January.
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    Cited by:

    1. Betti,Gianni & Molini,Vasco & Mori,Lorenzo, 2022. "New Algorithm to Estimate Inequality Measures in Cross-Survey Imputation : An Attemptto Correct the Underestimation of Extreme Values," Policy Research Working Paper Series 10013, The World Bank.
    2. Hanan Nazier & Racha Ramadan, 2015. "Informality and Poverty: A Causality Dilemma with Application to Egypt," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 5(4), pages 1-4.
    3. Daniele Checchi & Andrej Cupak & Teresa Munzi & Janet Gornick, 2018. "Empirical challenges comparing inequality across countries: The case of middle-income countries from the LIS database," WIDER Working Paper Series 149, World Institute for Development Economic Research (UNU-WIDER).
    4. Anis Saidi & Mekki Hamdaoui & Wajdi Moussa, 2021. "Assessing Policy Effectiveness in Reducing Inequality of Opportunity in Access to Public Services and Education Among Tunisian Children," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(3), pages 993-1018, September.
    5. Daniele Checchi & Andrej Cupak & Teresa Munzi & Janet Gornick, 2018. "Empirical challenges comparing inequality across countries: The case of middle-income countries from the LIS database," WIDER Working Paper Series wp-2018-149, World Institute for Development Economic Research (UNU-WIDER).
    6. Daniele Checchi & Andrej Cupak & Teresa Munzi & Janet Gornick, 2018. "Empirical challenges comparing inequality across countries," LIS Working papers 756, LIS Cross-National Data Center in Luxembourg.
    7. Ragui Assaad & Hanan Nazier & Rasha Ramadan, 2015. "Empowerment is a Community Affair: Community Level Determinants of Married Women's Empowerment in Egypt," Working Papers 959, Economic Research Forum, revised Oct 2015.
    8. Racha Ramadan & Vladimir Hlasny & Vito Intini, 2018. "Inter‐Group Expenditure Gaps In The Arab Region And Their Determinants: Application To Egypt, Jordan, Palestine And Tunisia," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(s1), pages 145-188, October.

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