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Using repeated cross-sections to explore movements in and out of poverty

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  • Dang, Hai-Anh
  • Lanjouw, Peter
  • Luoto, Jill
  • McKenzie, David

Abstract

Movements in and out of poverty are of core interest to both policymakers and economists. Yet the panel data needed to analyze such movements are rare. In this paper, the authors build on the methodology used to construct poverty maps to show how repeated cross-sections of household survey data can allow inferences to be made about movements in and out of poverty. They illustrate that the method permits the estimation of bounds on mobility, and provide non-parametric and parametric approaches to obtaining these bounds. They test how well the method works on data sets for Vietnam and Indonesia where we are able to compare our method to true panel estimates. The results are sufficiently encouraging to offer the prospect of some limited, basic, insights into mobility and poverty duration in settings where historically it was judged that the data necessary for such analysis were unavailable.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5550.

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Date of creation: 01 Jan 2011
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Handle: RePEc:wbk:wbrwps:5550

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Keywords: Rural Poverty Reduction; Regional Economic Development; Statistical&Mathematical Sciences; Achieving Shared Growth;

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References

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  1. James P. Smith & Duncan Thomas, 2004. "Remembrances of Things Past: Test-Retest Reliability of Retrospective Migration Histories," Labor and Demography 0403026, EconWPA.
  2. de Mel, Suresh & McKenzie, David & Woodruff, Christopher, 2008. "Who Are the Microenterprise Owners? Evidence from Sri Lanka on Tokman v. de Soto," IZA Discussion Papers 3511, Institute for the Study of Labor (IZA).
  3. Fields, Gary & Duval Hernández, Robert & Freije-Rodriguez, Samuel & Sanchez Puerta, Maria Laura, 2007. "Earnings Mobility in Argentina, Mexico, and Venezuela: Testing the Divergence of Earnings and the Symmetry of Mobility Hypotheses," IZA Discussion Papers 3184, Institute for the Study of Labor (IZA).
  4. Deaton, Angus, 1985. "Panel data from time series of cross-sections," Journal of Econometrics, Elsevier, vol. 30(1-2), pages 109-126.
  5. Josh Lerner & Antoinette Schoar, 2010. "International Differences in Entrepreneurship," NBER Books, National Bureau of Economic Research, Inc, number lern08-2, October.
  6. Antman, Francisca & McKenzie, David J., 2005. "Earnings mobility and measurement error : a pseudo-panel approach," Policy Research Working Paper Series 3745, The World Bank.
  7. David McKenzie, 2005. "Measuring inequality with asset indicators," Journal of Population Economics, Springer, vol. 18(2), pages 229-260, 06.
  8. Gibson, John, 2001. "Measuring chronic poverty without a panel," Journal of Development Economics, Elsevier, vol. 65(2), pages 243-266, August.
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Citations

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Cited by:
  1. Tom Krebs & Pravin Krishna & William Maloney, 2013. "Income Mobility and Welfare," IMF Working Papers 13/24, International Monetary Fund.
  2. Tom Krebs & Pravin Krishna & William F. Maloney, 2013. "Income Risk, Income Mobility and Welfare," DOCUMENTOS CEDE 010495, UNIVERSIDAD DE LOS ANDES-CEDE.
  3. Dang, Hai-Anh & Lanjouw, Peter, 2013. "Measuring poverty dynamics with synthetic panels based on cross-sections," Policy Research Working Paper Series 6504, The World Bank.
  4. Cruces, Guillermo & Lanjouw, Peter & Lucchetti, Leonardo & Perova, Elizaveta & Vakis, Renos & Viollaz, Mariana, 2011. "Intra-generational mobility and repeated cross-sections : a three-country validation exercise," Policy Research Working Paper Series 5916, The World Bank.

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