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A simple method for controlling for compositional effects in the measurement of poverty

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  • Robert Wright

Abstract

This paper outlines a method for controlling for compositional factors in the measurement of poverty. The method is based in shift-share analysis and direct standarization, the later technique popular in the field of demography. The method is consistent with Sen's influential axiomatic approach to poverty measurement and employs the popular poverty index proposed by Foster et al. This index is one of the few summary poverty measures that can be directly standardized and also meets Sen's criteria.

Suggested Citation

  • Robert Wright, 1997. "A simple method for controlling for compositional effects in the measurement of poverty," Applied Economics Letters, Taylor & Francis Journals, vol. 4(1), pages 37-39.
    • Handle: RePEc:taf:apeclt:v:4:y:1997:i:1:p:37-39
    DOI: 10.1080/758521829
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    References listed on IDEAS

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    1. Hagenaars, Aldi J M, 1987. "A Class of Poverty Indices," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(3), pages 583-607, October.
    2. Mookherjee, Dilip & Shorrocks, Anthony F, 1982. "A Decomposition Analysis of the Trend in UK Income Inequality," Economic Journal, Royal Economic Society, vol. 92(368), pages 886-902, December.
    3. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
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