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Comparing alternative measures of household income: Evidence from the Khayelitsha/Mitchell's plain survey

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  • Jolene Skordis
  • Matthew Welch

Abstract

Household income is widely used for economic and sociological analysis, yet little emphasis has been placed on the optimal way to gather household income data. The Khayelitsha/Mitchell's Plain Survey provides a unique opportunity to explore alternative ways of measuring household income. This study compares the estimates obtained from a household module with those obtained from detailed income data collected in the adult module of the survey. Estimates derived from individual income data tend to be higher and have greater variation than those obtained from the household module. This difference between income estimates has a material impact on the secondary analysis of income data. The Gini coefficient, a simple measure of income-inequality, is used in this study to illustrate how household income measured at the household level underestimates household income inequality.

Suggested Citation

  • Jolene Skordis & Matthew Welch, 2004. "Comparing alternative measures of household income: Evidence from the Khayelitsha/Mitchell's plain survey," Development Southern Africa, Taylor & Francis Journals, vol. 21(3), pages 461-481.
    • Handle: RePEc:taf:deveza:v:21:y:2004:i:3:p:461-481
    DOI: 10.1080/0376835042000265441
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    Cited by:

    1. Nicoli Nattrass & Richard Walker, 2005. "Unemployment And Reservation Wages In Working‐Class Cape Town," South African Journal of Economics, Economic Society of South Africa, vol. 73(3), pages 498-509, September.
    2. Ross Esson, 2003. "Savings and Savers: An Analysis of Saving Behaviour among Cape Town's Poor," SALDRU/CSSR Working Papers 059, Southern Africa Labour and Development Research Unit, University of Cape Town.
    3. Richard Walker, 2003. "Reservation Wages-Measurement and Determinants: Evidence from the KMP Survey," SALDRU/CSSR Working Papers 038, Southern Africa Labour and Development Research Unit, University of Cape Town.

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