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A Note on Decomposing Differences in Poverty Incidence Using Regression Estimates: Algorithm and Example

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  • Bhaumik, Sumon K.

    ()
    (University of Sheffield)

  • Gang, Ira N.

    ()
    (Rutgers University)

  • Yun, Myeong-Su

    ()
    (Tulane University)

Abstract

This paper decomposes differences in poverty incidence (head count ratio) using estimates from a regression equation, synthesizing the approaches proposed in World Bank (2003) and Yun (2004). A significance test is developed for characteristics and coefficients effects when decomposing differences in poverty incidence. The proposed method is implemented for studying differences in poverty incidence between Serbians and Albanians in Kosovo using Living Standard Measurement Survey.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2262.

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Length: 19 pages
Date of creation: Aug 2006
Date of revision:
Handle: RePEc:iza:izadps:dp2262

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Keywords: poverty incidence; head count ratio; OLS; probit; decomposition;

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References

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  1. Bhaumik, Sumon Kumar & Gang, Ira N. & Yun, Myeong-Su, 2006. "Ethnic conflict and economic disparity: Serbians and Albanians in Kosovo," Journal of Comparative Economics, Elsevier, vol. 34(4), pages 754-773, December.
  2. Yun, Myeong-Su, 2003. "Decomposing Differences in the First Moment," IZA Discussion Papers 877, Institute for the Study of Labor (IZA).
  3. Abowd, John M & Killingsworth, Mark R, 1984. "Do Minority-White Unemployment Differences Really Exist?," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 2(1), pages 64-72, January.
  4. Denise J. Doiron & W. Craig Riddell, 1994. "The Impact of Unionization on Male-Female Earnings Differences in Canada," Journal of Human Resources, University of Wisconsin Press, vol. 29(2), pages 504-534.
  5. Ham, John C & Svejnar, Jan & Terrell, Katherine, 1998. "Unemployment and the Social Safety Net during Transitions to a Market Economy: Evidence from the Czech and Slovak Republics," American Economic Review, American Economic Association, American Economic Association, vol. 88(5), pages 1117-42, December.
  6. Even, William E. & Macpherson, David A., 1990. "Plant size and the decline of unionism," Economics Letters, Elsevier, Elsevier, vol. 32(4), pages 393-398, April.
  7. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  8. William E. Even & David A. Macpherson, 1993. "The Decline of Private-Sector Unionism and the Gender Wage Gap," Journal of Human Resources, University of Wisconsin Press, vol. 28(2), pages 279-296.
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Citations

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Cited by:
  1. Carlos Gradin, 2008. "Poverty among minorities in the United States: Explaining the racial poverty gap for Blacks and Latinos," Working Papers 96, ECINEQ, Society for the Study of Economic Inequality.
  2. Timm Bönke & Carsten Schröder, 2010. "Poverty in Germany: Statistical Inference and Decomposition," Discussion Papers of DIW Berlin 1060, DIW Berlin, German Institute for Economic Research.
  3. Luis Ayala & Antonio Jurado & Jesús Pérez-Mayo, 2009. "Income Poverty and Multidimensional Deprivation: Lessons from Cross-Regional Analysis," Working Papers 106, ECINEQ, Society for the Study of Economic Inequality.
  4. Essama-Nssah, B., 2012. "Identification of sources of variation in poverty outcomes," Policy Research Working Paper Series 5954, The World Bank.
  5. Gradín, Carlos, 2007. "Why Is Poverty So High Among Afro-Brazilians? A Decomposition Analysis of the Racial Poverty Gap," IZA Discussion Papers 2809, Institute for the Study of Labor (IZA).
  6. Somnath Chattopadhyay & Amita Majumder & Hasanur Jaman, 2014. "Decomposition of inter-regional poverty gap in India: a spatial approach," Empirical Economics, Springer, Springer, vol. 46(1), pages 65-99, February.
  7. Rafael Muñoz de Bustillo & José-Ignacio Antón, 2011. "From Rags to Riches? Immigration and Poverty in Spain," Population Research and Policy Review, Springer, Springer, vol. 30(5), pages 661-676, October.
  8. Somnath Chattopadhyay, 2011. "Inter-regional Poverty Comparisons: Case of West Bengal," Journal of Quantitative Economics, The Indian Econometric Society, The Indian Econometric Society, vol. 9(2), pages 104-122, July.

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