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Decomposing Poverty Change: Deciphering Change in Total Population and Beyond

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  • Srijit Mishra

Abstract

type="main"> In the understanding of decomposing poverty change, the growth effect of mean income is replaced with the growth effect of total income and the impact of change in total population. These two, along with changes in inequality, form the three broader effects that can be computed in multiple ways depending upon the base period and the sequence of calculation. Changing the base does not alter the broader effects while specific attributions within each effect get interchanged. For a given base, there will be six possible sequences and we take an average of these to compute the three broad effects. Finally, poverty change on account of the three broad effects comprising growth of total income, change in inequality, and change in total population are shown as part of the within-group effect while change in population shares, which is different from change in total population, is a between-group effect. We provide empirical illustrations with data from India.

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  • Srijit Mishra, 2015. "Decomposing Poverty Change: Deciphering Change in Total Population and Beyond," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(4), pages 799-811, December.
    • Handle: RePEc:bla:revinw:v:61:y:2015:i:4:p:799-811
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    1. Paul S. F. Yip & Jacky H. K. Wong & Billy Y. G. Li & Yi Zhang & Chi Leung Kwok & Meng Ni Chen, 2017. "Assessing the Impact of Population Dynamics on Poverty Measures: A Decomposition Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(2), pages 531-545, November.
    2. Biscione Antonella & de Felice Annunziata & Martucci Isabella, 2018. "Decomposition of Poverty Change: a Case Study," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 8(3), pages 1-4.
    3. Vanessa Hartmann & Konstantin M. Wacker, 2023. "Poverty decompositions with counterfactual income and inequality dynamics," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1746-1768, August.
    4. Srijit Mishra, 2014. "Incidence of Poor and Poverty Risk in India across NSS Regions for Rual and Urban Areas, 2004-05 and 2009-10," Working Papers id:5927, eSocialSciences.
    5. Wei Zou & Xiaopei Cheng & Zengzeng Fan & Chuhao Lin, 2023. "Measuring and Decomposing Relative Poverty in China," Land, MDPI, vol. 12(2), pages 1-24, January.
    6. Priyabrata Sahoo & Debolina Biswas & Saswata Guha Thakurata, 2023. "Is Growth Pro-poor Among the States of India? A Poverty Decomposition Exercise During the 2000s," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 165(1), pages 107-133, January.

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