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

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  • Sumon Kumar Bhaumik

    () (Brunel University)

  • Ira N. Gang

    () (Rutgers University)

  • Myeong-Su Yun

    () (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 Rutgers University, Department of Economics in its series Departmental Working Papers with number 200633.

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Length: 20 pages
Date of creation: 01 Dec 2006
Date of revision:
Handle: RePEc:rut:rutres:200633

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Keywords: poverty incidence; decomposition; headcount; probit;

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References

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  1. Ronald Oaxaca, . "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section..
  2. John Ham & Jan Svejnar & Katherine Terrell, 1998. "Unemployment and the Social Safety Net During Transitions to a Market Economy: Evidence from the Czech and Slovak Republic," William Davidson Institute Working Papers Series 169, William Davidson Institute at the University of Michigan.
  3. 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.
  4. Yun, Myeong-Su, 2004. "Decomposing differences in the first moment," Economics Letters, Elsevier, vol. 82(2), pages 275-280, February.
  5. Even, William E. & Macpherson, David A., 1990. "Plant size and the decline of unionism," Economics Letters, Elsevier, vol. 32(4), pages 393-398, April.
  6. 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.
  7. Bhaumik, Sumon K. & Gang, Ira N. & Yun, Myeong-Su, 2005. "Ethnic Conflict and Economic Disparity: Serbians and Albanians in Kosovo," IZA Discussion Papers 1772, Institute for the Study of Labor (IZA).
  8. 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.
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Citations

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Cited by:
  1. Essama-Nssah, B., 2012. "Identification of sources of variation in poverty outcomes," Policy Research Working Paper Series 5954, The World Bank.
  2. 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).
  3. Luis Ayala & Antonio Jurado & Jesús Pérez‐Mayo, 2011. "Income Poverty And Multidimensional Deprivation: Lessons From Cross‐Regional Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(1), pages 40-60, 03.
  4. Carlos Gradín, 2012. "Poverty among minorities in the United States: explaining the racial poverty gap for Blacks and Latinos," Applied Economics, Taylor and Francis Journals, vol. 44(29), pages 3793-3804, October.
  5. Timm Bönke & Carsten Schröder, 2011. "Poverty in Germany – Statistical Inference and Decomposition," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 231(2), pages 178-209, April.
  6. Rafael Muñoz de Bustillo & José-Ignacio Antón, 2011. "From Rags to Riches? Immigration and Poverty in Spain," Population Research and Policy Review, Springer, vol. 30(5), pages 661-676, October.
  7. Somnath Chattopadhyay, 2011. "Inter-regional Poverty Comparisons: Case of West Bengal," Journal of Quantitative Economics, The Indian Econometric Society, vol. 9(2), pages 104-122, July.

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