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An Application of Partial Least Squares to the Construction of the Social Institutions and Gender Index (SIGI) and the Corruption Perception Index (CPI)

Author

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  • Jisu Yoon

    (Georg-August-University Göttingen)

  • Stephan Klasen

    (Georg-August-University Göttingen)

Abstract

In this paper the Social Institutions and Gender Index (SIGI) is constructed with Principal Component Analysis (PCA) and Partial Least Squares (PLS). Using the SIGI, we test the effects of social institutions related to gender inequality on several development outcomes, such as female education, fertility, child mortality and corruption, controlling for relevant determinants. As the measure of corruption we use the Corruption Perception Index (CPI), considering alternative weighting procedures using PCA and PLS. We find that gender inequality in social institutions has significant effect on fertility and corruption regardless of the weighting procedure, while for female education and child mortality only the SIGI based on PLS generates significant results.

Suggested Citation

  • Jisu Yoon & Stephan Klasen, 2015. "An Application of Partial Least Squares to the Construction of the Social Institutions and Gender Index (SIGI) and the Corruption Perception Index (CPI)," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 173, Courant Research Centre PEG.
    • Handle: RePEc:got:gotcrc:173
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    References listed on IDEAS

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    1. Boris Branisa & Maria Ziegler, 2010. "Reexamining the link between gender and corruption: The role of social institutions," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 24, Courant Research Centre PEG.
    2. Krämer, Nicole & Sugiyama, Masashi, 2011. "The Degrees of Freedom of Partial Least Squares Regression," Journal of the American Statistical Association, American Statistical Association, vol. 106(494), pages 697-705.
    3. Deon Filmer & Lant Pritchett, 2001. "Estimating Wealth Effects Without Expenditure Data—Or Tears: An Application To Educational Enrollments In States Of India," Demography, Springer;Population Association of America (PAA), vol. 38(1), pages 115-132, February.
    4. Michel Tenenhaus & Forrest Young, 1985. "An analysis and synthesis of multiple correspondence analysis, optimal scaling, dual scaling, homogeneity analysis and other methods for quantifying categorical multivariate data," Psychometrika, Springer;The Psychometric Society, vol. 50(1), pages 91-119, March.
    5. Axel Dreher, 2006. "Does globalization affect growth? Evidence from a new index of globalization," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1091-1110.
    6. Stanislav Kolenikov & Gustavo Angeles, 2009. "Socioeconomic Status Measurement With Discrete Proxy Variables: Is Principal Component Analysis A Reliable Answer?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(1), pages 128-165, March.
    7. Branisa, Boris & Klasen, Stephan & Ziegler, Maria, 2013. "Gender Inequality in Social Institutions and Gendered Development Outcomes," World Development, Elsevier, vol. 45(C), pages 252-268.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Messner, Wolfgang, 2022. "Cultural Heterozygosity: Towards a New Measure of Within-Country Cultural Diversity," Journal of World Business, Elsevier, vol. 57(4).
    2. Eva Mª Buitrago & Mª Ángeles Caraballo & José L. Roldán, 2019. "Do Tolerant Societies Demand Better Institutions?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(3), pages 1161-1184, June.
    3. Arruñada, Benito, 2020. "The impact of experience on how we perceive the rule of law," Journal of Institutional Economics, Cambridge University Press, vol. 16(3), pages 251-269, June.
    4. Hilary I. Okagbue & Pelumi E. Oguntunde & Sheila A. Bishop & Patience I. Adamu & Elvir M. Akhmetshin & Chukwuemeka O. Iroham, 2021. "Significant Predictors of Henley Passport Index," Journal of International Migration and Integration, Springer, vol. 22(1), pages 21-32, March.
    5. Aurea Grané & Irene Albarrán & Qi Guo, 2021. "Visualizing Health and Well-Being Inequalities Among Older Europeans," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(2), pages 479-503, June.
    6. Stefanía D’Iorio & Liliana Forzani & Rodrigo García Arancibia & Ignacio Girela, 2023. "Predictive Power of Composite Socioeconomic Indices in Regression and Classification: Principal Components and Partial Least Squares," Working Papers 246, Red Nacional de Investigadores en Economía (RedNIE).
    7. Lara Fontanella & Annalina Sarra & Simone Zio, 2020. "Do Gender Differences in Social Institutions Matter in Shaping Gender Equality in Education and the Labour Market? Empirical Evidences from Developing Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(1), pages 133-158, January.

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    More about this item

    Keywords

    Social Institutions and Gender Index; SIGI; Corruption Perception Index; CPI; Principal Component Analysis; PCA; Partial Least Squares; PLS; non-metric variables;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • B54 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Feminist Economics
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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