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Measuring poverty dynamics with synthetic panels based on cross-sections

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  • Dang, Hai-Anh
  • Lanjouw, Peter

Abstract

Panel data conventionally underpin the analysis of poverty mobility over time. However, such data are not readily available for most developing countries. Far more common are the"snap-shots"of welfare captured by cross-section surveys. This paper proposes a method to construct synthetic panel data from cross sections which can provide point estimates of poverty mobility. In contrast to traditional pseudo-panel methods that require multiple rounds of cross-sectional data to study poverty at the cohort level, the proposed method can be applied to settings with as few as two survey rounds and also permits investigation at the more disaggregated household level. The procedure is implemented using cross-section survey data from several countries, spanning different income levels and geographical regions. Estimates fall within the 95 percent confidence interval -- or even one standard error in many cases -- of those based on actual panel data. The method is not only restricted to studying poverty mobility but can also accommodate investigation of other welfare outcome dynamics.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6504.

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Date of creation: 01 Jun 2013
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Handle: RePEc:wbk:wbrwps:6504

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Keywords: Statistical&Mathematical Sciences; Regional Economic Development; Poverty Lines; Rural Poverty Reduction; Science Education;

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  16. Elbers, Chris & Lanjouw, Jean O. & Lanjouw, Peter, 2002. "Micro-level estimation of welfare," Policy Research Working Paper Series 2911, The World Bank.
  17. Bierbaum, Mira & Gassmann, Franziska, 2012. "Chronic and transitory poverty in the Kyrgyz Republic: What can synthetic panels tell us?," MERIT Working Papers 064, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  18. Claudio Agostini & Phillip Brown, 2007. "Local Distributional Effects of Government Cash Transfers in Chile," ILADES-Georgetown University Working Papers inv181, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines.
  19. Dang, Hai-Anh & Lanjouw, Peter & Luoto, Jill & McKenzie, David, 2014. "Using repeated cross-sections to explore movements into and out of poverty," Journal of Development Economics, Elsevier, vol. 107(C), pages 112-128.
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Cited by:
  1. Reema Nayar & Pablo Gottret & Pradeep Mitra & Gordon Betcherman & Yue Man Lee & Indhira Santos & Mahesh Dahal & Maheshwor Shrestha, 2012. "More and Better Jobs in South Asia," World Bank Publications, The World Bank, number 2391, October.

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