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Poverty comparisons with common relative poverty lines

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  • Tahsin Mehdi

Abstract

Relative poverty lines are increasingly being used in poverty comparison studies. Existing methods assume that the distributions being compared are distinct with independent relative poverty lines. However, this practice may be problematic when comparing two subgroups of a population. We follow up on a recent proposal for the usage of common relative poverty lines in such cases, and develop a test for comparing poverty between subgroups of a single population, using inequality restrictions. Monte Carlo experiments are conducted in order to examine the size and power of our proposed test. We illustrate our procedure using some U.S. household income data.

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  • Tahsin Mehdi, 2017. "Poverty comparisons with common relative poverty lines," Communications in Statistics - Theory and Methods, Taylor & Francis Journals, vol. 46(4), pages 2029-2036, February.
    • Handle: RePEc:taf:lstaxx:v:46:y:2017:i:4:p:2029-2036
    DOI: 10.1080/03610926.2015.1040504
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    Cited by:

    1. Chen, Feifei & Qiu, Huanguang & Zhang, Jun, 2022. "Energy consumption and income of the poor in rural China: Inference for poverty measures," Energy Policy, Elsevier, vol. 163(C).
    2. Tahsin Mehdi, 2019. "Stochastic Dominance Approach to OECD’s Better Life Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(3), pages 917-954, June.

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