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Item response theory and the measurement of deprivation: Evidence from PSELL-3

Author

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  • Raileanu Szeles, Monica

    (Transylvania University of Brasov, Romania and CEPS/ INSTEAD, Luxembourg)

  • Fusco, Alessio

    (CEPS/ INSTEAD, Luxembourg and CEMAFI – University of Nice Sophia Antipolis)

Abstract

Item Response Theory (IRT) has recently been proposed as a framework to measure deprivation. It allows deriving a latent measure of deprivation from a set of dichotomous observed items of deprivation and analyzing determinants of deprivation. We investigate further the use of IRT models in the field of deprivation measurement. Firstly, the paper emphasizes the importance of item selection and the Mokken Scale Procedure is applied in order to select the items to be included in the scale of deprivation. Secondly, we apply the one and the two-parameter probit IRT models for dichotomous items on two different sets of items, in order to highlight different empirical results. Finally, we introduce a graphical tool, the Item Characteristic Curve (ICC) and analyse the determinants of deprivation in Luxembourg. The empirical illustration is based on the fourth wave of the Luxembourg socioeconomic panel “Liewen zu Lëtzebuerg” (PSELL-3).

Suggested Citation

  • Raileanu Szeles, Monica & Fusco, Alessio, 2009. "Item response theory and the measurement of deprivation: Evidence from PSELL-3," IRISS Working Paper Series 2009-05, IRISS at CEPS/INSTEAD.
  • Handle: RePEc:irs:iriswp:2009-05
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    File URL: http://iriss.ceps.lu/documents/irisswp103.pdf
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    References listed on IDEAS

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    1. Monica Raileanu Szeles & Ileana Tache, 2008. "The Forms and Determinants of Social Exclusion in the European Union: The Case of Luxemburg," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 14(4), pages 369-380, November.
    2. Fusco, Alessio & Dickes, Paul, 2006. "Rasch Model and Multidimensional Poverty Measurement," IRISS Working Paper Series 2006-02, IRISS at CEPS/INSTEAD.
    3. Jean-Benoit Hardouin, 2007. "Rasch analysis: Estimation and tests with raschtest," Stata Journal, StataCorp LP, vol. 7(1), pages 22-44, February.
    4. Cappellari, Lorenzo & Jenkins, Stephen P., 2006. "Summarizing multiple deprivation indicators," ISER Working Paper Series 2006-40, Institute for Social and Economic Research.
    5. Alkire, Sabina, 2005. "Valuing Freedoms: Sen's Capability Approach and Poverty Reduction," OUP Catalogue, Oxford University Press, number 9780199283316.
    6. Nolan, Brian & Whelan, Christopher T., 1996. "Resources, Deprivation, and Poverty," OUP Catalogue, Oxford University Press, number 9780198287858.
    7. Xiaohui Zheng & Sophia Rabe-Hesketh, 2007. "Estimating parameters of dichotomous and ordinal item response models with gllamm," Stata Journal, StataCorp LP, vol. 7(3), pages 313-333, September.
    8. Sen, Amartya, 1979. " Issues in the Measurement of Poverty," Scandinavian Journal of Economics, Wiley Blackwell, vol. 81(2), pages 285-307.
    9. repec:kap:iaecre:v:14:y:2008:i:4:p:369-380 is not listed on IDEAS
    10. Gillian Lancaster & Mick Green, 2002. "Deprivation, ill-health and the ecological fallacy," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 165(2), pages 263-278.
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    Cited by:

    1. Philippe Van Kerm, 2013. "Generalized measures of wage differentials," Empirical Economics, Springer, vol. 45(1), pages 465-482, August.
    2. Verme, Paolo, 2009. "Happiness, Deprivation and the Alter Ego," IRISS Working Paper Series 2009-18, IRISS at CEPS/INSTEAD.

    More about this item

    Keywords

    item response theory ; deprivation ; latent trait ; Mokken Scale ; PSELL3;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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