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Measuring and detecting situations of need and deprivation using Graded Response Models

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  • Corsini, Lorenzo
  • Martelli, Irene

Abstract

In the present work we exploit information on living conditions of individuals to build an estimation of their degree of need and deprivation. The information we use have often subjective components that help in identifying situations of need and we assume that deprivation is a latent variable that we estimate with IRT models on Italian data. We then relate this estimated trait to more objective and observable variables that thus could be used within policy actions and welfare programs to pinpoint situations where the estimated deprivation is high.

Suggested Citation

  • Corsini, Lorenzo & Martelli, Irene, 2017. "Measuring and detecting situations of need and deprivation using Graded Response Models," MPRA Paper 79787, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:79787
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    References listed on IDEAS

    as
    1. Lorenzo Corsini, 2013. "How unemployment benefits affect individuals of different wealth classes," International Journal of Manpower, Emerald Group Publishing Limited, vol. 34(6), pages 693-711, September.
    2. P. Jenkins, Stephen & Cappellari, Lorenzo, 2006. "Summarizing multiple deprivation indicators," ISER Working Paper Series 2006-40, Institute for Social and Economic Research.
    3. Bloemen, Hans G & Stancanelli, Elena G F, 2001. "Individual Wealth, Reservation Wages, and Transitions into Employment," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 400-439, April.
    4. Raj Chetty, 2008. "Moral Hazard vs. Liquidity and Optimal Unemployment Insurance," NBER Working Papers 13967, National Bureau of Economic Research, Inc.
    5. repec:hal:wpspec:info:hdl:2441/9704 is not listed on IDEAS
    6. Jean-Benoit Hardouin & Angelique Bonnaud-Antignac & Veronique Sebille, 2011. "Nonparametric item response theory using Stata," Stata Journal, StataCorp LP, vol. 11(1), pages 30-51, March.
    7. Jenkins, Stephen P. & Micklewright, John (ed.), 2007. "Inequality and Poverty Re-Examined," OUP Catalogue, Oxford University Press, number 9780199218127.
    8. Monica Szeles & Alessio Fusco, 2013. "Item response theory and the measurement of deprivation: evidence from Luxembourg data," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(3), pages 1545-1560, April.
    9. repec:hal:spmain:info:hdl:2441/9704 is not listed on IDEAS
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    More about this item

    Keywords

    Item Response Theory; IRT; deprivation; degree of need; welfare programs.;
    All these keywords.

    JEL classification:

    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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