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

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  • RAILEANU SZELES Monica
  • FUSCO Alessio

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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    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. Alessio Fusco & Paul Dickes, 2008. "The Rasch Model and Multidimensional Poverty Measurement," Palgrave Macmillan Books, in: Nanak Kakwani & Jacques Silber (ed.), Quantitative Approaches to Multidimensional Poverty Measurement, chapter 3, pages 49-62, Palgrave Macmillan.
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    2. VERME Paolo, 2009. "Happiness, Deprivation and the Alter Ego," IRISS Working Paper Series 2009-18, IRISS at CEPS/INSTEAD.

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