Using Repeated Cross-Sections to Explore Movements in and Out of Poverty (Lanjouw P., Luoto J., McKenzie D.)

Household Strategies

Abstract Movements in and out of poverty are of core interest to both policymakers and economists. Yet the measurement of such movements has been limited in many countries due to the lack of panel data. In this paper, the authors consider a method whereby repeated cross-sections of household survey data can be analyzed in such a way as to allow inferences to be made about movements in and out of poverty. Their approach builds on the methodology used to construct poverty maps. They suggest that this method lends itself also to the development of pseudo-panels which can be used to study questions about poverty duration and mobility that are of interest to policy makers but that are rarely pursued empirically due to data constraints. They illustrate that the method at best offers insights into approximate bounds of mobility, but argue that these bounds can, under ideal circumstances, be narrow enough to yield useful insights. They test how well the method works by sampling repeated cross-sections from genuine panel data sets for Vietnam and Indonesia and comparing their method to the 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.
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Libref/ Lanjouw P., Luoto J., McKenzie D. (2011) "Using Repeated Cross-Sections to Explore Movements in and Out of Poverty", World Bank Policy Research Working Paper No. 5550, pp. 1 - 40
© Программирование — Александр Красильников, 2008
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