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

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Author Info
Sumon Kumar Bhaumik () (Brunel University and IZA Bonn)
Ira N. Gang () (Rutgers University and IZA Bonn)
Myeong-Su Yun () (Tulane University and IZA Bonn)

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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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Publisher 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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Related research
Keywords: poverty incidence; head count ratio; OLS; probit; decomposition;

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Find related papers by JEL classification:
C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
I30 - Health, Education, and Welfare - - Welfare and Poverty - - - General

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Sumon Kumar Bhaumik & Ira N. Gang & Myeong-Su Yun, 2005. "Ethnic Conflict and Economic Disparity: Serbians and Albanians in Kosovo," IZA Discussion Papers 1772, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. Ronald Oaxaca, . "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
    Other versions:
  3. 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, vol. 88(5), pages 1117-42, December. [Downloadable!] (restricted)
    Other versions:
  4. Abowd, John M & Killingsworth, Mark R, 1984. "Do Minority-White Unemployment Differences Really Exist?," Journal of Business & Economic Statistics, American Statistical Association, vol. 2(1), pages 64-72, January.
  5. Doiron, D.J. & Rddell, W.C., 1992. "The Impact of Unionization on Male-Female Earnings Differences in Canada," UBC Departmental Archives 92-30, UBC Department of Economics.
  6. Yun, Myeong-Su, 2004. "Decomposing differences in the first moment," Economics Letters, Elsevier, vol. 82(2), pages 275-280, February. [Downloadable!] (restricted)
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  7. Even, William E. & Macpherson, David A., 1990. "Plant size and the decline of unionism," Economics Letters, Elsevier, vol. 32(4), pages 393-398, April. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Carlos Gradín, 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). [Downloadable!]
  2. Muñoz de Bustillo, Rafael & Antón, José-Ignacio, 2009. "From rags to riches? Immigration and poverty in Spain," MPRA Paper 13848, University Library of Munich, Germany. [Downloadable!]
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