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Measuring Poverty Dynamics with Synthetic Panels Based on Repeated Cross-Sections

Author

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  • Dang, Hai-Anh H

    (World Bank)

  • Lanjouw, Peter F.

    (Vrije Universiteit Amsterdam)

Abstract

Panel data are rarely available for developing countries. Departing from traditional pseudo-panel methods that require multiple rounds of cross-sectional data to study poverty mobility at the cohort level, we develop a procedure that works with as few as two survey rounds and produces point estimates of transitions along the welfare distribution at the more disaggregated household level. Validation using Monte Carlo simulations and real cross-sectional and actual panel survey data— from several countries, spanning different income levels and geographical regions—perform well under various deviations from model assumptions. The method could also inform investigation of other welfare outcome dynamics.

Suggested Citation

  • Dang, Hai-Anh H & Lanjouw, Peter F., 2022. "Measuring Poverty Dynamics with Synthetic Panels Based on Repeated Cross-Sections," IZA Discussion Papers 15827, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15827
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    Cited by:

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    2. Rongen,Gerton & Lanjouw,Peter, 2024. "The Only Way Is Up ? Economic Mobility in Malaysia in the 21st Century," Policy Research Working Paper Series 10991, The World Bank.
    3. Himanshu & Peter Lanjouw, 2020. "Income mobility in the developing world: Recent approaches and evidence," WIDER Working Paper Series wp-2020-7, World Institute for Development Economic Research (UNU-WIDER).
    4. Amendola,Nicola & Belotti,Federico & Alvin Etang Ndip & Mancini,Giulia & Vecchi,Giovanni, 2025. "Poverty Dynamics in Bhutan, 2017–2022 : Evidence from Synthetic Panels," Policy Research Working Paper Series 11031, The World Bank.
    5. Dang, Hai-Anh H. & Raju, Dhushyanth & Tanaka, Tomomi & Abanokova, Kseniya, 2024. "Poverty dynamics for Ghana during 2005/06–2016/17: an investigation using synthetic panels," LSE Research Online Documents on Economics 124105, London School of Economics and Political Science, LSE Library.
    6. Dang, Hai-Anh H. & Cong Nguyen, Minh & Trinh, Trong-Anh, 2023. "Does hotter temperature increase poverty and inequality? Global evidence from subnational data analysis," LSE Research Online Documents on Economics 120156, London School of Economics and Political Science, LSE Library.
    7. Caiza-Guamán, Pamela & García-Suaza, Andrés & Sepúlveda Rico, Carlos, 2025. "Understanding labor market transitions in the Green Economy: A synthetic panel approach for Colombia," GLO Discussion Paper Series 1693, Global Labor Organization (GLO).
    8. Federica Alfani & Fabio Clementi & Michele Fabiani & Vasco Molini & Enzo Valentini, 2023. "Once NEET, always NEET? A synthetic panel approach to analyze the Moroccan labor market," Review of Development Economics, Wiley Blackwell, vol. 27(4), pages 2401-2437, November.

    More about this item

    Keywords

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    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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