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Small-area measures of income poverty

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  • Fenton, Alex

Abstract

This paper considers techniques for measuring the prevalence of income poverty within small areas, or “neighbourhoods”, in Britain. The ultimate purpose is applying such statistics to investigating how the micro-spatial distribution of poverty within cities and regions changes over time as a consequence of political decisions and economic events. In the paper, some general criteria for small-area poverty measures are first set out, and two broad methods, poverty proxies and modelled income estimates, are identified. Empirical analyses of the validity and coverage of poverty proxies derived from UK administrative data, such as social security benefit claims, are presented. The concluding section assesses a new poverty proxy that will be used within a wider programme of analysis of the spatial-distributional effects of tax and welfare changes and of economic trends in Britain from 2000 to 2014. Particular attention is paid to the relationship between the proxy values and other local poverty measures in different kinds of places. These suggest that the proxy is an adequate, albeit imperfect, tool for investigating changes in intra-urban distributions of poverty.

Suggested Citation

  • Fenton, Alex, 2013. "Small-area measures of income poverty," LSE Research Online Documents on Economics 51269, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:51269
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    File URL: http://eprints.lse.ac.uk/51269/
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    1. Nikos Tzavidis & Nicola Salvati & Monica Pratesi & Ray Chambers, 2008. "M-quantile models with application to poverty mapping," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 17(3), pages 393-411, July.
    2. Bruce D. Meyer & Wallace K. C. Mok & James X. Sullivan, 2009. "The Under-Reporting of Transfers in Household Surveys: Its Nature and Consequences," NBER Working Papers 15181, National Bureau of Economic Research, Inc.
    3. Dan Vickers & Phil Rees, 2007. "Creating the UK National Statistics 2001 output area classification," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 170(2), pages 379-403, March.
    4. Lumley, Thomas, 2004. "Analysis of Complex Survey Samples," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 9(i08).
    5. Kirill Mueller & Kay W. Axhausen, 2011. "Hierarchical IPF: Generating a synthetic population for Switzerland," ERSA conference papers ersa11p305, European Regional Science Association.
    6. Glen Bramley & Sharon Lancaster & David Gordon, 2000. "Benefit Take-up and the Geography of Poverty in Scotland," Regional Studies, Taylor & Francis Journals, vol. 34(6), pages 507-519.
    7. Robert Tanton & Yogi Vidyattama & Binod Nepal & Justine McNamara, 2011. "Small area estimation using a reweighting algorithm," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 174(4), pages 931-951, October.
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    Cited by:

    1. Ferguson, Neil T.N. & Michaelsen, Maren M., 2015. "Money changes everything? Education and regional deprivation revisited," Economics of Education Review, Elsevier, vol. 48(C), pages 129-147.
    2. repec:cep:spccrr:03 is not listed on IDEAS
    3. Gambaro, Ludovica & Joshi, Heather & Lupton, Ruth & Fenton, Alex & Lennon, Mary Clare, 2016. "Developing Better Measures of Neighbourhood Characteristics and Change for Use in Studies of Residential Mobility: A Case Study of Britain in the Early 2000s," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 9(4), pages 569-590.
    4. Neil Lee & Paul Sissons, 2016. "Inclusive growth? The relationship between economic growth and poverty in British cities," Environment and Planning A, , vol. 48(11), pages 2317-2339, November.
    5. Gambaro, Ludovica & Joshi, Heather E. & Lupton, Ruth, 2017. "Moving to a better place? Residential mobility among families with young children in the Millennium Cohort Study," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 23, pages 1-14.
    6. repec:cep:spccrr:06 is not listed on IDEAS

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    More about this item

    Keywords

    small-area poverty estimates; small-area poverty estimation; poverty proxies; poor neighbourhoods; deprivation indices;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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