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Estimating Poverty with Panel Data, Comparably : An Example from Jordan

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World Bank (WB)

Abstract: Poverty estimates based on enumeration from a single point in time form the cornerstone for much of the literature on poverty. Households are typically interviewed once about their consumption or income, and their wellbeing is assessed from their responses. Global estimates of poverty that aggregate poverty counts from all countries implicitly assume that the counts are comparable. This paper illustrates that this assumption of comparability is potentially invalid when households are interviewed multiple times with repeat visits throughout the year. The paper provides an example from Jordan, where the internationally comparable approach of handling the data from repeat visits yields a poverty rate that is 26 percent greater than the rate that is currently reported as the official estimate. The paper also explores alternative definitions of poverty, informed in part by the psychological and biophysical literature on the long-run effects of short-term exposure to poverty or generally adverse environments. This alternative concept of poverty suggests that the prevalence of those who have been affected by poverty in Jordan during 2010 is more than twice as large as the official 2010 estimate of poverty.
Type: Working Paper
Publications & Research
Publications & Research :: Policy Research Working Paper
Link: http://hdl.handle.net/10986/22457
Subject: HOUSEHOLD INCOMES
LIVING STANDARDS
PER CAPITA CONSUMPTION
POVERTY LINE
ECONOMIC GROWTH
FAMINES
SQUARED POVERTY GAP
INCOME
FOOD CONSUMPTION
AVERAGE LEVEL
POVERTY INDICES
AGRICULTURAL PRODUCTION
POVERTY ESTIMATES
NATIONAL POVERTY LINE
INTERNATIONAL ORGANIZATIONS
CONSUMPTION DATA
DEVELOPING COUNTRIES
HEALTH INSURANCE
HOUSING
NATIONAL POVERTY
POOR PEOPLE
POVERTY GAP INDEX
INCOME SUPPORT
NATIONAL POVERTY RATE
FOOD CONSUMPTION DATA
GLOBAL POVERTY
SOCIAL PROGRAMS
MEASURES
POVERTY MEASURES
REGION
POVERTY REDUCTION
COPING STRATEGIES
ECONOMIC ACTIVITY
PUBLIC POLICY
REDUCTION STRATEGY
FOOD BASKET
DEFINITIONS OF POVERTY
MEASURING POVERTY
RURAL HOUSEHOLDS
DEVELOPMENT ECONOMICS
LOW-INCOME COUNTRIES
DECOMPOSABLE POVERTY MEASURES
POVERTY GAP
INCOME INEQUALITY
TRANSFERS
CHRONIC POVERTY
HOUSEHOLD SURVEYS
BUSINESS CYCLE
PUBLIC WORKS PROGRAMS
CHANGES IN POVERTY
CREDIT PROGRAMS
POVERTY STATISTICS
CASH TRANSFERS
DECOMPOSABLE POVERTY
POVERTY PROFILE
REAL INCOMES
UNEMPLOYMENT
DEVELOPMENT RESEARCH
POVERTY LINES
CONSUMPTION
POVERTY DATA
HUMAN CAPITAL
POVERTY COMPARISONS
POVERTY MEASURE
POVERTY MEASUREMENT
REDUCTION IN POVERTY
POLICY MAKERS
CHRONICALLY POOR
AGGREGATE POVERTY
DENSITY FUNCTION
FAMILY INCOME
MEASUREMENT OF POVERTY
HEADCOUNT INDEX
CATEGORICAL TARGETING
IMPACT OF SHOCKS
POVERTY REDUCTION STRATEGY
NUTRITION
HOUSEHOLD BUDGET
PUBLIC WORKS
SMALL-SCALE AGRICULTURE
ECONOMICS
INSURANCE
TARGETING
MACROECONOMIC SHOCKS
RICH COUNTRIES
ECONOMIC OPPORTUNITIES
CONSUMPTION SMOOTHING
POOR POPULATION
EXTREME POVERTY
POVERTY
HEADCOUNT POVERTY
POLICY IMPLICATIONS
HOUSEHOLD CONSUMPTION
POVERTY UPDATE
HOUSEHOLD WELFARE
POLICY RESEARCH
POVERTY RATE
POOR
FOOD PRICES
CHILD POVERTY
SQUARED POVERTY GAP INDEX
ELIGIBILITY
DEVELOPMENT POLICY
INCOME VOLATILITY
INEQUALITY
GROWTH
POOR HOUSEHOLDS
POOR PERSON




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