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Measuring and detecting situations of need and deprivation using Graded Response models

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  • Lorenzo Corsini
  • Irene Martelli

Abstract

We exploit information on living conditions of households to build an estimation of their degree of need and deprivation. The information we use is often subjective and we assume that deprivation is a latent variable that we estimate with item response theory models on Italian data. Then, we relate this estimated trait to more objective and observable variables that thus could be used within policy actions and welfare programmes to pinpoint situations where the estimated deprivation is high.

Suggested Citation

  • Lorenzo Corsini & Irene Martelli, 2020. "Measuring and detecting situations of need and deprivation using Graded Response models," Applied Economics Letters, Taylor & Francis Journals, vol. 27(15), pages 1289-1294, September.
    • Handle: RePEc:taf:apeclt:v:27:y:2020:i:15:p:1289-1294
    DOI: 10.1080/13504851.2019.1677843
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    References listed on IDEAS

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    1. Lorenzo Corsini, 2013. "How unemployment benefits affect individuals of different wealth classes," International Journal of Manpower, Emerald Group Publishing Limited, vol. 34(6), pages 693-711, September.
    2. P. Jenkins, Stephen & Cappellari, Lorenzo, 2006. "Summarizing multiple deprivation indicators," ISER Working Paper Series 2006-40, Institute for Social and Economic Research.
    3. Bloemen, Hans G & Stancanelli, Elena G F, 2001. "Individual Wealth, Reservation Wages, and Transitions into Employment," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 400-439, April.
    4. Raj Chetty, 2008. "Moral Hazard vs. Liquidity and Optimal Unemployment Insurance," NBER Working Papers 13967, National Bureau of Economic Research, Inc.
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    6. Jean-Benoit Hardouin & Angelique Bonnaud-Antignac & Veronique Sebille, 2011. "Nonparametric item response theory using Stata," Stata Journal, StataCorp LP, vol. 11(1), pages 30-51, March.
    7. Jenkins, Stephen P. & Micklewright, John (ed.), 2007. "Inequality and Poverty Re-Examined," OUP Catalogue, Oxford University Press, number 9780199218127.
    8. Monica Szeles & Alessio Fusco, 2013. "Item response theory and the measurement of deprivation: evidence from Luxembourg data," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(3), pages 1545-1560, April.
    9. repec:hal:spmain:info:hdl:2441/9704 is not listed on IDEAS
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    More about this item

    JEL classification:

    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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