IDEAS home Printed from https://ideas.repec.org/a/vrs/offsta/v31y2015i2p155-175n2.html
   My bibliography  Save this article

Variance Estimation of Change in Poverty Rates: an Application to the Turkish EU-SILC Survey

Author

Listed:
  • Oguz Alper Melike

    (University of Southampton, University Road Bldg. 58, Southampton SO17 1BJ, UK)

  • Berger Yves G.

    (University of Southampton, University Road Bldg. 58, Southampton SO17 1BJ, UK)

Abstract

Interpreting changes between point estimates at different waves may be misleading if we do not take the sampling variation into account. It is therefore necessary to estimate the standard error of these changes in order to judge whether or not the observed changes are statistically significant. This involves the estimation of temporal correlations between cross-sectional estimates, because correlations play an important role in estimating the variance of a change in the cross-sectional estimates. Standard estimators for correlations cannot be used because of the rotation used in most panel surveys, such as the European Union Statistics on Income and Living Conditions (EU-SILC) surveys. Furthermore, as poverty indicators are complex functions of the data, they require special treatment when estimating their variance. For example, poverty rates depend on poverty thresholds which are estimated from medians. We propose using a multivariate linear regression approach to estimate correlations by taking into account the variability of the poverty threshold. We apply the approach proposed to the Turkish EU-SILC survey data.

Suggested Citation

  • Oguz Alper Melike & Berger Yves G., 2015. "Variance Estimation of Change in Poverty Rates: an Application to the Turkish EU-SILC Survey," Journal of Official Statistics, Sciendo, vol. 31(2), pages 155-175, June.
    • Handle: RePEc:vrs:offsta:v:31:y:2015:i:2:p:155-175:n:2
    DOI: 10.1515/jos-2015-0012
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/jos-2015-0012
    Download Restriction: no
    File URL: https://libkey.io/10.1515/jos-2015-0012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Salem, A B Z & Mount, T D, 1974. "A Convenient Descriptive Model of Income Distribution: The Gamma Density," Econometrica, Econometric Society, vol. 42(6), pages 1115-1127, November.
    2. Ian Preston, 1995. "Sampling Distributions of Relative Poverty Statistics," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 44(1), pages 91-99, March.
    3. Vijay Verma & Gianni Betti, 2011. "Taylor linearization sampling errors and design effects for poverty measures and other complex statistics," Journal of Applied Statistics, Taylor & Francis Journals, vol. 38(8), pages 1549-1576, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ilaria Benedetti & Gianni Betti & Federico Crescenzi, 2020. "Measuring Child Poverty and Its Uncertainty: A Case Study of 33 European Countries," Sustainability, MDPI, vol. 12(19), pages 1-12, October.
    2. Gianni Betti & Francesca Gagliardi, 2018. "Extension of JRR Method for Variance Estimation of Net Changes in Inequality Measures," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(1), pages 45-60, May.
    3. Stephen P. Jenkins & Philippe Van Kerm, 2016. "Assessing Individual Income Growth," Economica, London School of Economics and Political Science, vol. 83(332), pages 679-703, October.
    4. Russell Davidson & Jean-Yves Duclos, 2000. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Econometrica, Econometric Society, vol. 68(6), pages 1435-1464, November.
    5. Fabio Clementi & Mauro Gallegati & Giorgio Kaniadakis, 2010. "A model of personal income distribution with application to Italian data," Empirical Economics, Springer, vol. 39(2), pages 559-591, October.
    6. Oded Stark & Wiktor Budzinski & Grzegorz Kosiorowski, 2019. "The pure effect of social preferences on regional location choices: The evolving dynamics of convergence to a steady state population distribution," Journal of Regional Science, Wiley Blackwell, vol. 59(5), pages 883-909, November.
    7. Vladimir Hlasny, 2021. "Parametric representation of the top of income distributions: Options, historical evidence, and model selection," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1217-1256, September.
    8. Akira Ishida & Siong-Hook Law & Yoshihisa Aita, 2003. "Changes in food consumption expenditure in Malaysia," Agribusiness, John Wiley & Sons, Ltd., vol. 19(1), pages 61-76.
    9. Michał Brzeziński, 2013. "Parametric Modelling of Income Distribution in Central and Eastern Europe," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 5(3), pages 207-230, September.
    10. Callealta Barroso, Francisco Javier & García-Pérez, Carmelo & Prieto-Alaiz, Mercedes, 2020. "Modelling income distribution using the log Student’s t distribution: New evidence for European Union countries," Economic Modelling, Elsevier, vol. 89(C), pages 512-522.
    11. Keshab Raj Bhattarai, 2007. "Analyses of Poverty and Income Redistribution," EcoMod2007 23900007, EcoMod.
    12. Laura Levaggi & Rosella Levaggi, 2017. "Rationing in health care provision: a welfare approach," International Journal of Health Economics and Management, Springer, vol. 17(2), pages 235-249, June.
    13. Tim Goedemé & Karel Van den Bosch & Lina Salanauskaite & Gerlinde Verbist, 2013. "Testing the Statistical Significance of Microsimulation Results: Often Easier than You Think. A Technical Note," ImPRovE Working Papers 13/10, Herman Deleeck Centre for Social Policy, University of Antwerp.
    14. Hakkio, Craig S. & Rush, Mark & Schmidt, Timothy J., 1996. "The marginal income tax rate schedule from 1930 to 1990," Journal of Monetary Economics, Elsevier, vol. 38(1), pages 117-138, August.
    15. Jos'e Miguel Flores-Contr'o, 2024. "The Gerber-Shiu Expected Discounted Penalty Function: An Application to Poverty Trapping," Papers 2402.11715, arXiv.org, revised Sep 2024.
    16. Jose Maria Sarabia & Francisco Azpitarte, 2012. "On the relationship between objective and subjective inequality indices and the natural rate of subjective inequality," Working Papers 248, ECINEQ, Society for the Study of Economic Inequality.
    17. Fernández-Morales, Antonio, 2016. "Measuring poverty with the Foster, Greer and Thorbecke indexes based on the Gamma distribution," MPRA Paper 69648, University Library of Munich, Germany.
    18. Gilat Levy & Ronny Razin, 2015. "Preferences over Equality in the Presence of Costly Income Sorting," American Economic Journal: Microeconomics, American Economic Association, vol. 7(2), pages 308-337, May.
    19. Benedetti, Ilaria & Crescenzi, Federico, 2023. "The role of income poverty and inequality indicators at regional level: An evaluation for Italy and Germany," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    20. Sung Y. Park & Anil K. Bera, 2018. "Information theoretic approaches to income density estimation with an application to the U.S. income data," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 16(4), pages 461-486, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:offsta:v:31:y:2015:i:2:p:155-175:n:2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.