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Child Poverty in Vietnam: Using Adult Equivalence Scales to Estimate Income-Poverty for Different Age Groups

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  • Howard White

    (Institute of Development Studies)

Abstract

Estimates of child poverty are based on the percentage of children living in poor households, which ignores the issue of intrahousehold allocation. It is commonly argued that the fact that data are collected at the household level means it is not possible to report figures relating to the number of children living in poverty. Yet analysts using income and expenditure data routinely make adjustments to these data which implicitly tell us exactly how much of household expenditure is going on each child. These adjustments are the use of adult equivalence scales. These scales give child consumption as a proportion of that of an adult male, and hence can be used to calculate child consumption shares. These scales may be estimated econometrically, and are hence based on intra-household allocation patterns for the households under study. Moreover, the scales can be estimated separately for different sub-samples of the population, allowing estimates of child poverty rates for different groups; for example how child poverty differs between boys and girls or for different ethnic groups. This paper presents such estimates in the case of Vietnam.

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Bibliographic Info

Paper provided by EconWPA in its series Development and Comp Systems with number 0504016.

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Length: 36 pages
Date of creation: 29 Apr 2005
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Handle: RePEc:wpa:wuwpdc:0504016

Note: Type of Document - pdf; pages: 36
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Web page: http://128.118.178.162

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Keywords: Children; poverty measurement; Vietnam; household survey data;

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References

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  1. Lancaster, Geoffrey & Ray, Ranjan, 1998. "Comparison of Alternative Models of Household Equivalence Scales: The Australian Evidence on Unit Record Data," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 74(224), pages 1-14, March.
  2. Ferreira, M Luisa & Buse, Reuben C & Chavas, Jean-Paul, 1998. "Is There Bias in Computing Household Equivalence Scales?," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 44(2), pages 183-98, June.
  3. Nelson, Julie A, 1993. "Household Equivalence Scales: Theory versus Policy?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 11(3), pages 471-93, July.
  4. Pollak, Robert A & Wales, Terence J, 1979. "Welfare Comparisons and Equivalence Scales," American Economic Review, American Economic Association, American Economic Association, vol. 69(2), pages 216-21, May.
  5. J. L. Nicholson, 1976. "Appraisal Of Different Methods Of Estimating Equivalence Scales And Their Results," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 22(1), pages 1-11, 03.
  6. Shelley A. Phipps, 1998. "What Is The Income "Cost Of A Child"? Exact Equivalence Scales For Canadian Two-Parent Families," The Review of Economics and Statistics, MIT Press, vol. 80(1), pages 157-164, February.
  7. Lancaster, Geoffrey & Ray, Ranjan & Valenzuela, Maria Rebecca, 1999. "A Cross-Country Study of Equivalence Scales and Expenditure Inequality on Unit Record Household Budget Data," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 45(4), pages 455-82, December.
  8. Sonia Bhalotra & Cliff Attfield, 1998. "Intrahousehold resource allocation in rural Pakistan: a semiparametric analysis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., John Wiley & Sons, Ltd., vol. 13(5), pages 463-480.
  9. Haughton, Dominique & Haughton, Jonathan, 1997. "Explaining Child Nutrition in Vietnam," Economic Development and Cultural Change, University of Chicago Press, University of Chicago Press, vol. 45(3), pages 541-56, April.
  10. Deaton, Angus S & Muellbauer, John, 1986. "On Measuring Child Costs: With Applications to Poor Countries," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 94(4), pages 720-44, August.
  11. Deaton, Angus S & Ruiz-Castillo, Javier & Thomas, Duncan, 1989. "The Influence of Household Composition on Household Expenditure Patterns: Theory and Spanish Evidence," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 97(1), pages 179-200, February.
  12. Gronau, Reuben, 1991. "The Intrafamily Allocation of Goods--How to Separate the Adult from the Child," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 9(3), pages 207-35, July.
  13. Van Praag, Bernard M.S. & Warnaar, Marcel F., 1993. "The cost of children and the use of demographic variables in consumer demand," Handbook of Population and Family Economics, Elsevier, in: M. R. Rosenzweig & Stark, O. (ed.), Handbook of Population and Family Economics, edition 1, volume 1, chapter 6, pages 241-273 Elsevier.
  14. Muellbauer, John, 1977. "Testing the Barten Model of Household Composition Effects and the Cost of Children," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 87(347), pages 460-87, September.
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Citations

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Cited by:
  1. Monica Guillen-Royo, 2008. "Consumption and Subjective Wellbeing: Exploring Basic Needs, Social Comparison, Social Integration and Hedonism in Peru," Social Indicators Research, Springer, Springer, vol. 89(3), pages 535-555, December.
  2. Baulch, Bob & Masset, Edoardo, 2003. "Do Monetary and Nonmonetary Indicators Tell the Same Story About Chronic Poverty? A Study of Vietnam in the 1990s," World Development, Elsevier, Elsevier, vol. 31(3), pages 441-453, March.
  3. Patrick Eozenou, 2009. "Optimal Risk Sharing Under Limited Commitment: Evidence From Rural Vietnam," Working Papers, Development and Policies Research Center (DEPOCEN), Vietnam 06, Development and Policies Research Center (DEPOCEN), Vietnam.
  4. Roelen, Keetie & Gassmann, Franziska, 2008. "Measuring Child Poverty and Well-Being: a literature review," MPRA Paper 8981, University Library of Munich, Germany.
  5. Ngo, Thu Hien Laura & Santos, Paulo, 2012. "Geography and economic growth in Vietnam," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil, International Association of Agricultural Economists 126491, International Association of Agricultural Economists.
  6. Ngo, Thu Hien Laura & Santos, Paulo, 2012. "Geography and economic growth in Vietnam," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington, Agricultural and Applied Economics Association 126489, Agricultural and Applied Economics Association.
  7. World Bank, 2008. "How do Women Fare in Education, Employment, and Health? A Gender Analysis of the 2006 Vietnam Household Living Standard Survey," World Bank Other Operational Studies 7737, The World Bank.
  8. McCulloch, Neil & Calandrino, Michele, 2003. "Vulnerability and Chronic Poverty in Rural Sichuan," World Development, Elsevier, Elsevier, vol. 31(3), pages 611-628, March.
  9. Rizwana Siddiqui, 2005. "Modelling Gender Dimensions of the Impact of Economic Reforms on Time Allocation among Market, Household, and Leisure Activities in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, Pakistan Institute of Development Economics, vol. 44(4), pages 615-639.
  10. Bruno Arpino & Arnstein Aassve, 2008. "Estimating the causal effect of fertility on economic wellbeing: Data requirements, identifying assumptions and estimation methods," Working Papers, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi 013, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.
  11. Nguyen Viet, Cuong, 2010. "Ethnic minority children’s access to public services in Vietnam," MPRA Paper 33611, University Library of Munich, Germany.
  12. Molini, Vasco & Nubé, Maarten & van den Boom, Bart, 2010. "Adult BMI as a Health and Nutritional Inequality Measure: Applications at Macro and Micro Levels," World Development, Elsevier, Elsevier, vol. 38(7), pages 1012-1023, July.
  13. Judith Streak & Derek Yu & Servaas Van der Berg, 2009. "Measuring Child Poverty in South Africa: Sensitivity to the Choice of Equivalence Scale and an Updated Profile," Social Indicators Research, Springer, Springer, vol. 94(2), pages 183-201, November.
  14. Bruno Arpino & Arnstein Aassve, 2014. "The role of villages in households’ poverty exit: evidence from a multilevel model for rural Vietnam," Quality & Quantity: International Journal of Methodology, Springer, Springer, vol. 48(4), pages 2175-2189, July.
  15. Rizwana Siddiqui, 2007. "Modelling Gender Dimensions of the Impact of Economic Reforms in Pakistan," Working Papers MPIA, PEP-MPIA 2007-13, PEP-MPIA.
  16. Rizwana Siddiqui, 2004. "Modelling Gender Dimensions of the Impact of Economic Reforms on Time Allocation among Market Work,Household Work, and Leisure," PIDE-Working Papers, Pakistan Institute of Development Economics 2004:185, Pakistan Institute of Development Economics.
  17. repec:ese:iserwp:2007-27 is not listed on IDEAS

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