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Survey nonresponse and the distribution of income

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Author Info
Korinek, Anton
Mistiaen, Johan A.
Ravallion, Martin

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Abstract

The authors examine the distributional implications of selective compliance in sample surveys, whereby households with different incomes are not equally likely to participate. They discuss poverty and inequality measurement implications for monotonically decreasing and inverted-U compliance-income relationships. The authors demonstrate that the latent income effect on the probability of compliance can be estimated from information on response rates across geographic areas. On implementing the method on the Current Population Survey for the United States, they find that the compliance probability falls monotonically as income rises. Correcting for non-response appreciably increases mean income and inequality, but has only a small impact on poverty incidence up to poverty lines common in the United States.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3543.

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Date of creation: 01 Mar 2005
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Handle: RePEc:wbk:wbrwps:3543

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Keywords: Governance Indicators Poverty Impact Evaluation Health Economics&Finance Inequality Economic Theory&Research

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This paper has been announced in the following NEP Reports: 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. van Praag, Bernard M S & Hagenaars, Aldi J M & van Eck, Wim, 1983. "The Influence of Classification and Observation Errors on the Measurement of Income Inequality," Econometrica, Econometric Society, vol. 51(4), pages 1093-108, July. [Downloadable!] (restricted)
  2. Korinek, Anton & Mistiaen, Johan A. & Ravallion, Martin, 2007. "An econometric method of correcting for unit nonresponse bias in surveys," Journal of Econometrics, Elsevier, vol. 127(1), pages 213-235, January. [Downloadable!] (restricted)
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  3. Chesher, Andrew & Schluter, Christian, 2002. "Welfare Measurement and Measurement Error," Review of Economic Studies, Blackwell Publishing, vol. 69(2), pages 357-78, April.
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  4. Xavier Sala-i-Martin, 2002. "The World Distribution of Income (estimated from Individual Country Distributions)," NBER Working Papers 8933, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Lillard, Lee & Smith, James P & Welch, Finis, 1986. "What Do We Really Know about Wages? The Importance of Nonreporting and Census Imputation," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 489-506, June. [Downloadable!] (restricted)
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  6. Ravallion, Martin, 1994. "Poverty rankings using noisy data on living standards," Economics Letters, Elsevier, vol. 45(4), pages 481-485, August. [Downloadable!] (restricted)
  7. Nijman, Theo & Verbeek, Marno, 1992. "Nonresponse in Panel Data: The Impact on Estimates of a Life Cycle Consumption Function," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 7(3), pages 243-57, July-Sept. [Downloadable!] (restricted)
  8. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-64, July. [Downloadable!] (restricted)
  9. Eichhorn, Wolfgang & Funke, Helmut & Richter, Wolfram F., 1984. "Tax progression and inequality of income distribution," Journal of Mathematical Economics, Elsevier, vol. 13(2), pages 127-131, October. [Downloadable!] (restricted)
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  1. Chaudhuri, Shubham & Ravallion, Martin, 2006. "Partially awakened giants : uneven growth in China and India," Policy Research Working Paper Series 4069, The World Bank. [Downloadable!]
  2. Sangraula, Prem & Chen, Shaohua & Ravallion, Martin, 2007. "New evidence on the urbanization of global poverty," Policy Research Working Paper Series 4199, The World Bank. [Downloadable!]
  3. Korinek, Anton & Mistiaen, Johan A. & Ravallion, Martin, 2005. "An econometric method of correcting for unit nonresponse bias in surveys," Policy Research Working Paper Series 3711, The World Bank. [Downloadable!]
    Other versions:
  4. Ravallion, Martin & Chen, Shaohua, 2007. "Absolute poverty measures for the developing world, 1981-2004," Policy Research Working Paper Series 4211, The World Bank. [Downloadable!]
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