Updating Poverty Estimates in the Absence of Regular and Comparable Consumption Data: Methods and Illustration with Reference to a Middle-Income Country

Forthcoming with Oxford Economic Papers

45 Pages Posted: 13 Jul 2015 Last revised: 29 Dec 2016

See all articles by Hai-Anh Dang

Hai-Anh Dang

World Bank - Development Data Group (DECDG); IZA Institute of Labor Economics; Indiana University Bloomington - School of Public & Environmental Affairs (SPEA); Global Labor Organization (GLO); Vietnam National University Ha Noi; Vietnam Academy of Social Sciences (VASS) - Centre for Analysis and Forecasting

Peter F. Lanjouw

World Bank - Development Research Group (DECRG)

Umar Serajuddin

World Bank

Date Written: September 15, 2016

Abstract

Monitoring poverty trends on a timely and consistent basis is a priority for policy makers. These objectives are difficult to achieve in practice when household consumption data are neither frequently collected, nor constructed using consistent and transparent criteria. This paper develops and applies a formal framework for survey-to-survey poverty imputation in an attempt to overcome these obstacles. The framework introduced here imposes few restrictive assumptions, works with simple variance formulas, provides guidance on the selection of control variables for model building, and can be generally applied to imputation involving surveys with either the same, or differing, sampling designs. Results from combining Jordan’s Household Expenditure and Income Survey with its Unemployment and Employment Survey are quite encouraging, with imputation-based poverty estimates closely tracking direct estimates of poverty.

Keywords: poverty, imputation, consumption, household survey, labor force survey, Jordan

JEL Classification: C15, I32, O15

Suggested Citation

Dang, Hai-Anh H. and Lanjouw, Peter F. and Serajuddin, Umar, Updating Poverty Estimates in the Absence of Regular and Comparable Consumption Data: Methods and Illustration with Reference to a Middle-Income Country (September 15, 2016). Forthcoming with Oxford Economic Papers, Available at SSRN: https://ssrn.com/abstract=2624531 or http://dx.doi.org/10.2139/ssrn.2624531

Hai-Anh H. Dang (Contact Author)

World Bank - Development Data Group (DECDG) ( email )

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IZA Institute of Labor Economics ( email )

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Indiana University Bloomington - School of Public & Environmental Affairs (SPEA) ( email )

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Vietnam National University Ha Noi ( email )

Vietnam Academy of Social Sciences (VASS) - Centre for Analysis and Forecasting ( email )

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Peter F. Lanjouw

World Bank - Development Research Group (DECRG) ( email )

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HOME PAGE: http://econ.worldbank.org/staff/planjouw

Umar Serajuddin

World Bank ( email )

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Washington, DC 20433
United States

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