Estimating Individual Vulnerability to Poverty with Pseudo-Panel Data

This paper presents an original method to study individual earning dynamics using repeated cross-sectional data. Because panel data of individuals are seldom available in developing countries, it is difficult to study individual earning dynamics a...

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Main Authors: Bourguignon, Francois, Goh, Chor-ching, Kim, Dae Il
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, D.C. 2013
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2004/08/5108019/estimating-individual-vulnerability-poverty-pseudo-panel-data
http://hdl.handle.net/10986/14150
id okr-10986-14150
recordtype oai_dc
spelling okr-10986-141502021-04-23T14:03:21Z Estimating Individual Vulnerability to Poverty with Pseudo-Panel Data Bourguignon, Francois Goh, Chor-ching Kim, Dae Il AGRICULTURE DEVELOPMENT STRATEGIES ECONOMIC GROWTH EXPORT DIVERSIFICATION IMPORT SUBSTITUTION INCENTIVES INSTITUTION BUILDING MINING POVERTY MITIGATION TAX REFORMS This paper presents an original method to study individual earning dynamics using repeated cross-sectional data. Because panel data of individuals are seldom available in developing countries, it is difficult to study individual earning dynamics and related issues such as the propensity of earners to fall into poverty or vulnerability to poverty because of changes in earning. This paper shows that under the assumption that individual earning dynamics obey some basic properties and follow a simple stochastic process, the main parameters of this process can be recovered from repeated cross sectional data. The knowledge of these parameters then permits simulation of the earning dynamics of an individual, and estimate other measures of interest, such as an individual's vulnerability to poverty. The results show that model parameters recovered from pseudo-panels approximate reasonably well those estimated directly from a true panel. Moreover, implications of the model, in this case pseudo-panel measures of vulnerability to poverty, reflect closely those based on actual panel data. 2013-06-24T17:48:50Z 2013-06-24T17:48:50Z 2004-08 http://documents.worldbank.org/curated/en/2004/08/5108019/estimating-individual-vulnerability-poverty-pseudo-panel-data http://hdl.handle.net/10986/14150 English en_US Policy Research Working Paper;No.3375 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic AGRICULTURE
DEVELOPMENT STRATEGIES
ECONOMIC GROWTH
EXPORT DIVERSIFICATION
IMPORT SUBSTITUTION
INCENTIVES
INSTITUTION BUILDING
MINING
POVERTY MITIGATION
TAX REFORMS
spellingShingle AGRICULTURE
DEVELOPMENT STRATEGIES
ECONOMIC GROWTH
EXPORT DIVERSIFICATION
IMPORT SUBSTITUTION
INCENTIVES
INSTITUTION BUILDING
MINING
POVERTY MITIGATION
TAX REFORMS
Bourguignon, Francois
Goh, Chor-ching
Kim, Dae Il
Estimating Individual Vulnerability to Poverty with Pseudo-Panel Data
relation Policy Research Working Paper;No.3375
description This paper presents an original method to study individual earning dynamics using repeated cross-sectional data. Because panel data of individuals are seldom available in developing countries, it is difficult to study individual earning dynamics and related issues such as the propensity of earners to fall into poverty or vulnerability to poverty because of changes in earning. This paper shows that under the assumption that individual earning dynamics obey some basic properties and follow a simple stochastic process, the main parameters of this process can be recovered from repeated cross sectional data. The knowledge of these parameters then permits simulation of the earning dynamics of an individual, and estimate other measures of interest, such as an individual's vulnerability to poverty. The results show that model parameters recovered from pseudo-panels approximate reasonably well those estimated directly from a true panel. Moreover, implications of the model, in this case pseudo-panel measures of vulnerability to poverty, reflect closely those based on actual panel data.
format Publications & Research :: Policy Research Working Paper
author Bourguignon, Francois
Goh, Chor-ching
Kim, Dae Il
author_facet Bourguignon, Francois
Goh, Chor-ching
Kim, Dae Il
author_sort Bourguignon, Francois
title Estimating Individual Vulnerability to Poverty with Pseudo-Panel Data
title_short Estimating Individual Vulnerability to Poverty with Pseudo-Panel Data
title_full Estimating Individual Vulnerability to Poverty with Pseudo-Panel Data
title_fullStr Estimating Individual Vulnerability to Poverty with Pseudo-Panel Data
title_full_unstemmed Estimating Individual Vulnerability to Poverty with Pseudo-Panel Data
title_sort estimating individual vulnerability to poverty with pseudo-panel data
publisher World Bank, Washington, D.C.
publishDate 2013
url http://documents.worldbank.org/curated/en/2004/08/5108019/estimating-individual-vulnerability-poverty-pseudo-panel-data
http://hdl.handle.net/10986/14150
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