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Using repeated cross-sections to explore movements in and out of poverty

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  • Dang, Hai-Anh
  • Lanjouw, Peter
  • Luoto, Jill
  • McKenzie, David

Abstract

Movements in and out of poverty are of core interest to both policymakers and economists. Yet the panel data needed to analyze such movements are rare. In this paper, the authors build on the methodology used to construct poverty maps to show how repeated cross-sections of household survey data can allow inferences to be made about movements in and out of poverty. They illustrate that the method permits the estimation of bounds on mobility, and provide non-parametric and parametric approaches to obtaining these bounds. They test how well the method works on data sets for Vietnam and Indonesia where we are able to compare our method to true panel estimates. The results are sufficiently encouraging to offer the prospect of some limited, basic, insights into mobility and poverty duration in settings where historically it was judged that the data necessary for such analysis were unavailable.

Suggested Citation

  • Dang, Hai-Anh & Lanjouw, Peter & Luoto, Jill & McKenzie, David, 2011. "Using repeated cross-sections to explore movements in and out of poverty," Policy Research Working Paper Series 5550, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5550
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    Cited by:

    1. Tom Krebs & Pravin Krishna & William Maloney, 2013. "Income Mobility and Welfare," IMF Working Papers 13/24, International Monetary Fund.
    2. Marco Stampini & Marcos Robles & Mayra Sáenz & Pablo Ibarrarán & Nadin Medellín, 2016. "Poverty, vulnerability, and the middle class in Latin America," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 25(1), pages 1-44, December.
    3. Dang,Hai-Anh H. & Lanjouw,Peter F., 2015. "Poverty dynamics in India between 2004 and 2012 : insights from longitudinal analysis using synthetic panel data," Policy Research Working Paper Series 7270, The World Bank.
    4. Krebs, Tom & Krishna, Pravin & Maloney, William F., 2012. "Income Risk, Income Mobility and Welfare," IZA Discussion Papers 7056, Institute for the Study of Labor (IZA).
    5. Erika Pesántez, 2014. "Análisis de movilidad social en el Ecuador," Analítika, Analítika - Revista de Análisis Estadístico/Journal of Statistical Analysis, vol. 8(2), pages 53-68, Diciembre.
    6. World Bank Group, 2017. "Republic of Malawi Poverty Assessment," World Bank Other Operational Studies 26488, The World Bank.
    7. Tiziana Laureti, 2014. "Life satisfaction and environmental conditions in Italy: a pseudo-panel approach," Discussion Papers 2014/192, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    8. repec:oup:oxecpp:v:69:y:2017:i:4:p:939-962. is not listed on IDEAS
    9. Azevedo,Joao Pedro Wagner De & Yang,Judy & Inan,Osman Kaan & Nguyen,Minh Cong & Montes,Jose, 2016. "When and where do we see regional poverty reduction and convergence ? lessons from the roof of Turkey," Policy Research Working Paper Series 7540, The World Bank.
    10. Dang,Hai-Anh H. & Lanjouw,Peter F., 2013. "Measuring poverty dynamics with synthetic panels based on cross-sections," Policy Research Working Paper Series 6504, The World Bank.
    11. Dang,Hai-Anh H. & Ianchovichina,Elena, 2016. "Welfare dynamics with synthetic panels : the case of the Arab world in transition," Policy Research Working Paper Series 7595, The World Bank.
    12. Ceriani,Lidia & Inchauste Comboni,Maria Gabriela & Olivieri,Sergio Daniel, 2015. "Understanding poverty reduction in Sri Lanka : evidence from 2002 to 2012/13," Policy Research Working Paper Series 7446, The World Bank.
    13. Ira N. Gang & Kseniia Gatskova & John Landon-Lane & Myeong-Su Yun, 2016. "Vulnerability to Poverty: Tajikistan during and after the Global Financial Crisis," Working Papers 359, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    14. Dang,Hai-Anh H. & Lanjouw,Peter F. & Swinkels,Robertus Antonius, 2014. "Who remained in poverty, who moved up, and who fell down ? an investigation of poverty dynamics in Senegal in the late 2000s," Policy Research Working Paper Series 7141, The World Bank.
    15. Miguel Székely & Pamela Mendoza, 2017. "Patterns, Trends and Policy Implications of Private Spending on Skills Development in Mexico and the United States," IDB Publications (Working Papers) 98116, Inter-American Development Bank.
    16. Katsushi S. Imai & Gordon Abekah-Nkrumah & Purnima Purohit, 2014. "Is Rural Contribution to Aggregate Poverty Reduction Substantial? New Evidence," Brooks World Poverty Institute Working Paper Series 20814, BWPI, The University of Manchester.
    17. Cruces, Guillermo & Lanjouw, Peter & Lucchetti, Leonardo & Perova, Elizaveta & Vakis, Renos & Viollaz, Mariana, 2011. "Intra-generational mobility and repeated cross-sections : a three-country validation exercise," Policy Research Working Paper Series 5916, The World Bank.
    18. Dang, Hai-Anh H. & Lanjouw, Peter F. & Serajuddin, Umar, 2014. "Updating poverty estimates at frequent intervals in the absence of consumption data : methods and illustration with reference to a middle-income country," Policy Research Working Paper Series 7043, The World Bank.
    19. Inchauste, Gabriela & Azevedo, João Pedro & Olivieri, Sergio & Saavedra, Jaime & Winkler, Hernan, 2012. "When Job Earnings Are behind Poverty Reduction," World Bank - Economic Premise, The World Bank, issue 97, pages 1-6, November.
    20. Davalos, Maria E. & Meyer, Moritz, 2015. "Moldova : a story of upward economic mobility," Policy Research Working Paper Series 7167, The World Bank.
    21. Dang,Hai-Anh H. & Lanjouw,Peter F., 2015. "Toward a new definition of shared prosperity: a dynamic perspective from three countries," Policy Research Working Paper Series 7294, The World Bank.
    22. World Bank Group, 2016. "Poverty Reduction and Shared Prosperity in Moldova," World Bank Other Operational Studies 24734, The World Bank.
    23. Perez, Victor, 2015. "Moving in and out of poverty in Mexico: What can we learn from pseudo-panel methods?," ISER Working Paper Series 2015-16, Institute for Social and Economic Research.

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    Keywords

    Rural Poverty Reduction; Regional Economic Development; Statistical&Mathematical Sciences; Achieving Shared Growth;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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