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A Note on Decomposing Differences in Poverty Incidence Using Regression Estimates: Algorithm and Example

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  • Sumon Kumar Bhaumik

    (Brunel University)

  • Ira N. Gang

    (Rutgers University)

  • Myeong-Su Yun

    (Tulane University)

Abstract

This paper decomposes differences in poverty incidence (head count ratio) using estimates from a regression equation, synthesizing the approaches proposed in World Bank (2003) and Yun (2004). A significance test is developed for characteristics and coefficients effects when decomposing differences in poverty incidence. The proposed method is implemented for studying differences in poverty incidence between Serbians and Albanians in Kosovo using Living Standard Measurement Survey.

Suggested Citation

  • Sumon Kumar Bhaumik & Ira N. Gang & Myeong-Su Yun, 2006. "A Note on Decomposing Differences in Poverty Incidence Using Regression Estimates: Algorithm and Example," Departmental Working Papers 200633, Rutgers University, Department of Economics.
    • Handle: RePEc:rut:rutres:200633
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    References listed on IDEAS

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    3. Bhaumik, Sumon Kumar & Gang, Ira N. & Yun, Myeong-Su, 2006. "Ethnic conflict and economic disparity: Serbians and Albanians in Kosovo," Journal of Comparative Economics, Elsevier, vol. 34(4), pages 754-773, December.
    4. Abowd, John M & Killingsworth, Mark R, 1984. "Do Minority-White Unemployment Differences Really Exist?," Journal of Business & Economic Statistics, American Statistical Association, vol. 2(1), pages 64-72, January.
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    8. William E. Even & David A. Macpherson, 1993. "The Decline of Private-Sector Unionism and the Gender Wage Gap," Journal of Human Resources, University of Wisconsin Press, vol. 28(2), pages 279-296.
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    Cited by:

    1. Antonella Biscione & Dorothée Boccanfuso & Raul Caruso & Annunziata de Felice, 2020. "Blinder-Oaxaca Approach to Identify Innovation Differences in Transition Countries," Cahiers de recherche 20-09, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    2. Carlos Grad󸀍, 2012. "Poverty among minorities in the United States: explaining the racial poverty gap for Blacks and Latinos," Applied Economics, Taylor & Francis Journals, vol. 44(29), pages 3793-3804, October.
    3. Bhaumik, Sumon Kumar & Gang, Ira N. & Yun, Myeong-Su, 2017. "Poverty’s Deconstruction: Beyond the Visible," GLO Discussion Paper Series 147, Global Labor Organization (GLO).
    4. Bönke Timm & Schröder Carsten, 2011. "Poverty in Germany – Statistical Inference and Decomposition," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 231(2), pages 178-209, April.
    5. Gadom DJAL-GADOM & Armand MBOUTCHOUANG KOUNTCHOU, 2016. "Cross-County Poverty Comparisons In Chad: The Impact Of The Oil Revenues Redistribution Policy," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 44, pages 61-78.
    6. Somnath Chattopadhyay & Amita Majumder & Hasanur Jaman, 2014. "Decomposition of inter-regional poverty gap in India: a spatial approach," Empirical Economics, Springer, vol. 46(1), pages 65-99, February.
    7. Carlos Gradin, 2009. "Why is Poverty So High Among Afro-Brazilians? A Decomposition Analysis of the Racial Poverty Gap," Journal of Development Studies, Taylor & Francis Journals, vol. 45(9), pages 1426-1452.
    8. Luis Ayala & Antonio Jurado & Jesús Pérez‐Mayo, 2011. "Income Poverty And Multidimensional Deprivation: Lessons From Cross‐Regional Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(1), pages 40-60, March.
    9. Essama-Nssah, B., 2012. "Identification of sources of variation in poverty outcomes," Policy Research Working Paper Series 5954, The World Bank.
    10. Somnath Chattopadhyay, 2014. "Analysis Of Poverty And Efficiency: An Earnings Frontier Approach," Bulletin of Economic Research, Wiley Blackwell, vol. 66(2), pages 133-155, April.
    11. Sami Bibi & Rim Chatti, 2010. "Gender Poverty In Tunisia: Is There A Feminization Issue?," Middle East Development Journal (MEDJ), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 283-307.
    12. Rafael Muñoz de Bustillo & José-Ignacio Antón, 2011. "From Rags to Riches? Immigration and Poverty in Spain," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 30(5), pages 661-676, October.
    13. Michal Brzezinski, 2019. "Diagnosing Unhappiness Dynamics: Evidence from Poland and Russia," Journal of Happiness Studies, Springer, vol. 20(7), pages 2291-2327, October.
    14. Somnath Chattopadhyay, 2011. "Inter-regional Poverty Comparisons: Case of West Bengal," Journal of Quantitative Economics, The Indian Econometric Society, vol. 9(2), pages 104-122, July.

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    More about this item

    Keywords

    poverty incidence; decomposition; headcount; probit;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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