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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)
Ira N. Gang () (Rutgers University)
Myeong-Su Yun () (Tulane University)

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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 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
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Handle: RePEc:rut:rutres:200633

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Related research
Keywords: poverty incidence; decomposition; headcount; probit;

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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. Ronald Oaxaca, . "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  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 Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  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. [Downloadable!] (restricted)
    Other versions:
  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. [Downloadable!] (restricted)
  6. 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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  7. 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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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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