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Measuring Socio-economic Status in the Millennium Villages: The Role of Asset Index Choice

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  • Hope Michelson
  • Maria Mu�iz
  • Kyle DeRosa

Abstract

How are poverty analyses and poverty traps assessments affected by the choice among conventional methods of asset index construction? To address this question, this article uses panel data from four sites in the Millennium Villages Project (MVP) in Malawi, Tanzania, Mali and Ghana to study the relationship between eight asset indices and the sensitivity of findings related to poverty rates, poverty transitions and poverty traps to the index used. We find that although estimations of poverty rates and transitions are largely consistent across indices, evidence of poverty traps can be conditional on which asset index is used. The asset indices studied include structural income, principal components, factor analysis and a reduced set of assets reflecting the portfolio assessed in the Demographic Health Survey (DHS) data.

Suggested Citation

  • Hope Michelson & Maria Mu�iz & Kyle DeRosa, 2013. "Measuring Socio-economic Status in the Millennium Villages: The Role of Asset Index Choice," Journal of Development Studies, Taylor & Francis Journals, vol. 49(7), pages 917-935, July.
    • Handle: RePEc:taf:jdevst:v:49:y:2013:i:7:p:917-935
    DOI: 10.1080/00220388.2013.785525
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    References listed on IDEAS

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    1. Naschold, Felix, 2012. "“The Poor Stay Poor”: Household Asset Poverty Traps in Rural Semi-Arid India," World Development, Elsevier, vol. 40(10), pages 2033-2043.
    2. Naschold, Felix, 2005. "Identifying Asset Poverty Thresholds New methods with an application to Pakistan and Ethiopia," 2005 Annual meeting, July 24-27, Providence, RI 19115, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    Cited by:

    1. Arunachalam, Raj & Shenoy, Ajay, 2017. "Poverty traps, convergence, and the dynamics of household income," Journal of Development Economics, Elsevier, vol. 126(C), pages 215-230.
    2. Garbero, Alessandra & Songsermsawas, Tisorn, 2017. "How Much have Agricultural Projects Contributed to Economic Mobility and Food Security in China?," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258097, Agricultural and Applied Economics Association.
    3. Janina Isabel Steinert & Lucie Dale Cluver & G. J. Melendez-Torres & Sebastian Vollmer, 2018. "One Size Fits All? The Validity of a Composite Poverty Index Across Urban and Rural Households in South Africa," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 136(1), pages 51-72, February.
    4. Katharina Lehmann-Uschner & Kati Krähnert, 2018. "When Shocks Become Persistent: Household-Level Asset Growth in the Aftermath of an Extreme Weather Event," Discussion Papers of DIW Berlin 1759, DIW Berlin, German Institute for Economic Research.
    5. Bapu Vaitla & Jennifer Denno Cissé & Joanna Upton & Girmay Tesfay & Nigussie Abadi & Daniel Maxwell, 2020. "How the choice of food security indicators affects the assessment of resilience—an example from northern Ethiopia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(1), pages 137-150, February.
    6. Shira Mitchell & Andrew Gelman & Rebecca Ross & Joyce Chen & Sehrish Bari & Uyen Kim Huynh & Matthew W. Harris & Sonia Ehrlich Sachs & Elizabeth A. Stuart & Avi Feller & Susanna Makela & Alan M. Zasla, "undated". "The Millennium Villages Project: A Retrospective, Observational, Endline Evaluation," Mathematica Policy Research Reports 8376cf28448b40f69543be760, Mathematica Policy Research.
    7. Annemie Maertens & Hope Michelson & Vesall Nourani, 2021. "How Do Farmers Learn from Extension Services? Evidence from Malawi," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 569-595, March.
    8. Mugizi, Francisco M.P. & Matsumoto, Tomoya, 2021. "A curse or a blessing? Population pressure and soil quality in Sub-Saharan Africa: Evidence from rural Uganda," Ecological Economics, Elsevier, vol. 179(C).
    9. Thiede, Brian C., 2014. "Rainfall Shocks and Within-Community Wealth Inequality: Evidence from Rural Ethiopia," World Development, Elsevier, vol. 64(C), pages 181-193.

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