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Estimating Welfare Indices: Household Weights and Sample Design

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  • Frank A. Cowell
  • Stephen P. Jenkins

Abstract

The techniques of simple random sampling are seldom appropriate in the empirical analysis of income distributions. Various types of weighting schemes are usually required either from the point of view of welfare-economic considerations (the mapping of household/family distributions into individual distributions) or from the point of view of sample design. The different types of weights have different implications for the sampling distribution of estimators of welfare indices.
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Suggested Citation

  • Frank A. Cowell & Stephen P. Jenkins, 2000. "Estimating Welfare Indices: Household Weights and Sample Design," Discussion Papers of DIW Berlin 219, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp219
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    References listed on IDEAS

    as
    1. Ravallion, M., 1992. "Poverty Comparisons - A Guide to Concepts and Methods," Papers 88, World Bank - Living Standards Measurement.
    2. Cowell, F.A., 2000. "Measurement of inequality," Handbook of Income Distribution, in: A.B. Atkinson & F. Bourguignon (ed.), Handbook of Income Distribution, edition 1, volume 1, chapter 2, pages 87-166, Elsevier.
    3. Shorrocks, Anthony F, 1984. "Inequality Decomposition by Population Subgroups," Econometrica, Econometric Society, vol. 52(6), pages 1369-1385, November.
    4. Ebert, Udo, 1987. "Size and distribution of incomes as determinants of social welfare," Journal of Economic Theory, Elsevier, vol. 41(1), pages 23-33, February.
    5. Charles Blackorby & David Donaldson & Maria Auersperg, 1981. "A New Procedure for the Measurement of Inequality within and among Population Subgroups," Canadian Journal of Economics, Canadian Economics Association, vol. 14(4), pages 665-685, November.
    6. Jenkins, Stephen P, 1997. "Trends in Real Income in Britain: A Microeconomic Analysis," Empirical Economics, Springer, vol. 22(4), pages 483-500.
    7. Cowell, Frank A., 1989. "Sampling variance and decomposable inequality measures," Journal of Econometrics, Elsevier, vol. 42(1), pages 27-41, September.
    8. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    9. repec:bla:revinw:v:30:y:1984:i:3:p:351-75 is not listed on IDEAS
    10. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Equivalence Scale Relativities and the Extent of Inequality and Poverty," Economic Journal, Royal Economic Society, vol. 102(414), pages 1067-1082, September.
    11. Frank A. Cowell, 1984. "The Structure Of American Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 30(3), pages 351-375, September.
    12. C. M. Beach & S. F. Kaliski, 1986. "Lorenz Curve Inference with Sample Weights: An Application to the Distribution of Unemployment Experience," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 35(1), pages 38-45, March.
    13. Blackorby, Charles & Donaldson, David, 1978. "Measures of relative equality and their meaning in terms of social welfare," Journal of Economic Theory, Elsevier, vol. 18(1), pages 59-80, June.
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    Cited by:

    1. Heshmati, Almas, 2004. "Data Issues and Databases Used in Analysis of Growth, Poverty and Economic Inequality," IZA Discussion Papers 1263, Institute of Labor Economics (IZA).
    2. Stephen Jenkins, 2005. "Estimation of inequality indices from survey data, allowing for design effects," United Kingdom Stata Users' Group Meetings 2005 07, Stata Users Group.
    3. Fiorio, Carlo V., 2006. "Understanding inequality trends: microsimulation decomposition for Italy," LSE Research Online Documents on Economics 6544, London School of Economics and Political Science, LSE Library.
    4. P. Jenkins, Stephen & Biewen, Martin, 2003. "Estimation of Generalized Entropy and Atkinson inequality indices from survey data," ISER Working Paper Series 2003-11, Institute for Social and Economic Research.
    5. Martin Biewen & Stephen P. Jenkins, 2003. "Estimation of Generalized Entropy and Atkinson Inequality Indices from Complex Survey Data," Discussion Papers of DIW Berlin 345, DIW Berlin, German Institute for Economic Research.

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    More about this item

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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