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Are Neighbours Equal? Estimating Local Inequality in Three Developing Countries

Author

Listed:
  • Chris Elbers
  • Peter Lanjouw
  • Johan A. Mistiaen
  • Berk Özler
  • Kenneth Simler

Abstract

Based on a statistical procedure that combines household survey data with population census data, this paper presents estimates of inequality for three developing countries at a level of disaggregation far below that allowed by household surveys alone. We show that while the share of within-community inequality in overall inequality is high, this does not necessarily imply that all communities in a given country are as unequal as the country as a whole. In fact, in all three countries there is considerable variation in inequality across communities.

Suggested Citation

  • Chris Elbers & Peter Lanjouw & Johan A. Mistiaen & Berk Özler & Kenneth Simler, 2003. "Are Neighbours Equal? Estimating Local Inequality in Three Developing Countries," WIDER Working Paper Series DP2003-52, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:dp2003-52
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    File URL: https://www.wider.unu.edu/sites/default/files/dp2003-052.pdf
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    References listed on IDEAS

    as
    1. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-625, April.
    2. Kanbur, Ravi, 2000. "Income distribution and development," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.),Handbook of Income Distribution, edition 1, volume 1, chapter 13, pages 791-841, Elsevier.
    3. Gabriel Demombynes & Chris Elbers & Jean O. Lanjouw & Peter Lanjouw & Johan A. Mistiaen & Berk Özler, 2002. "Producing an Improved Geographic Profile of Poverty: Methodology and Evidence from Three Developing Countries," WIDER Working Paper Series DP2002-39, World Institute for Development Economic Research (UNU-WIDER).
    4. Chris Elbers & Jean O. Lanjouw & Peter Lanjouw, 2003. "Micro--Level Estimation of Poverty and Inequality," Econometrica, Econometric Society, vol. 71(1), pages 355-364, January.
    5. Simler, Kenneth R. & Nhate, Virgulino, 2005. "Poverty, inequality, and geographic targeting: Evidence from Small-Area Estimates in Mozambique," FCND discussion papers 192, International Food Policy Research Institute (IFPRI).
    6. Cowell, F.A., 2000. "Measurement of inequality," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.),Handbook of Income Distribution, edition 1, volume 1, chapter 2, pages 87-166, Elsevier.
    7. Martin Ravallion, 1999. "Is More Targeting Consistent with Less Spending?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 6(3), pages 411-419, August.
    8. Elbers, Chris & Lanjouw, Jean O. & Lanjouw, Peter, 2002. "Micro-level estimation of welfare," Policy Research Working Paper Series 2911, The World Bank.
    9. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-920, July.
    10. Lanjouw, Peter & Stern, Nicholas, 1998. "Economic Development in Palanpur over Five Decades," OUP Catalogue, Oxford University Press, number 9780198288329.
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    Citations

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    Cited by:

    1. Lessmann, Christian, 2013. "Foreign direct investment and regional inequality: A panel data analysis," China Economic Review, Elsevier, vol. 24(C), pages 129-149.
    2. World Bank, 2007. "Yemen Poverty Assessment : Volume 2. Annexes," World Bank Other Operational Studies 7906, The World Bank.
    3. Jesse Naidoo, 2009. "Finite-Sample Bias and Inconsistency in the Estimation of Poverty Maps," SALDRU Working Papers 36, Southern Africa Labour and Development Research Unit, University of Cape Town.
    4. Sergei Soares, 2018. "The Market Value of Owner Occupied Housing and Public Infrastructure Services," Commitment to Equity (CEQ) Working Paper Series 69, Tulane University, Department of Economics.
    5. Anthony Shorrocks & Guanghua Wan, 2005. "Spatial decomposition of inequality," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 59-81, January.
    6. Georg Hirte & Christian Lessmann, 2014. "Trade, Integration, and Interregional Inequality," CESifo Working Paper Series 4799, CESifo.
    7. Arsenio M. Balisacan & Nobuhiko Fuwa, 2004. "Changes in Spatial Income Inequality in the Philippines: An Exploratory Analysis," WIDER Working Paper Series RP2004-34, World Institute for Development Economic Research (UNU-WIDER).
    8. Josef Novotný, 2007. "On the measurement of regional inequality: does spatial dimension of income inequality matter?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 41(3), pages 563-580, September.
    9. Lessmann, Christian, 2014. "Spatial inequality and development — Is there an inverted-U relationship?," Journal of Development Economics, Elsevier, vol. 106(C), pages 35-51.
    10. Barrett, Christopher B. & Swallow, Brent M., 2006. "Fractal poverty traps," World Development, Elsevier, vol. 34(1), pages 1-15, January.
    11. World Bank, 2007. "Bangladesh : Strategy for Sustained Growth, Volume 1. Summary Report," World Bank Other Operational Studies 7765, The World Bank.
    12. Fujii, Tomoki, 2008. "How Well Can We Target Aid with Rapidly Collected Data? Empirical Results for Poverty Mapping from Cambodia," World Development, Elsevier, vol. 36(10), pages 1830-1842, October.
    13. Marta Jankowska & Magdalena Benza & John Weeks, 2013. "Estimating spatial inequalities of urban child mortality," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 28(2), pages 33-62.
    14. David Warner & Prasada Rao & William E. Griffiths & Duangkamon Chotikapanich, 2011. "Global Inequality: Levels and Trends, 1993-2005," Discussion Papers Series 436, School of Economics, University of Queensland, Australia.
    15. repec:ilo:ilowps:458221 is not listed on IDEAS
    16. Walker, Thomas S. & Pitoro, Raul & Tomo, Alda & Sitoe, Isabel & Salencia, Celestino & Mahanzule, Rosalina & Donovan, Cynthia & Mazuze, Feliciano M., 2006. "Priority Setting for Public-Sector Agricultural Research in Mozambique with the National Agricultural Survey Data," Food Security Collaborative Working Papers 56113, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    17. Cornia, Giovanni Andrea, 2017. "Income Inequality Trends in sub-Saharan Africa: Divergence, determinants and consequences: Inequality Levels, Trends and Determinants in sub-Saharan Africa: An Overview of main changes since the early," UNDP Africa Reports 267642, United Nations Development Programme (UNDP).

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