Poverty dynamics corrected for measurement error

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. • ESRC Research Centre on Micro-social Change. Established in 1989 to identify, explain, model and forecast social change in Britain at the individual and household level, the Centre specialises in research using longitudinal data. Terms of use: Documents in• ESRC UK Longitudinal Centre. This national resource centre was established in October 1999 to promote the use of longitudinal data and to develop a strategy for the future of large-scale longitudinal surveys. It was responsible for the British Household Panel Survey (BHPS) and for the ESRC's interest in the National Child Development Study and the 1970 British Cohort Study• European Centre for Analysis in the Social Sciences. ECASS is an interdisciplinary research centre which hosts major research programmes and helps researchers from the EU gain access to longitudinal data and cross-national datasets from all over Europe.The British Household Panel Survey is one of the main instruments for measuring social change in Britain. The BHPS comprises a nationally representative sample of around 5,500 households and over 10,000 individuals who are reinterviewed each year. The questionnaire includes a constant core of items accompanied by a variable component in order to provide for the collection of initial conditions data and to allow for the subsequent inclusion of emerging research and policy concerns.Among the main projects in ISER's research programme are: the labour market and the division of domestic responsibilities; changes in families and households; modelling households' labour force behaviour; wealth, well-being and socio-economic structure; resource distribution in the household; and modelling techniques and survey methodology.BHPS data provide the academic community, policymakers and private sector with a unique national resource and allow for comparative research with similar studies in Europe, the United States and Canada.BHPS data are available from the Data Archive at the University of Essex http://www.data-archive.ac.ukFurther information about the BHPS and other longitudinal surveys can be obtained by telephoning +44 (0) 1206 873543. The support of both the Economic and Social Research Council (ESRC) and the University of Essex is gratefully acknowledged. The work reported in this paper is part of the scientific programme of the Institute for Social and Economic Research. Acknowledgement:Comments welcome but please do not quote without authors' permission. 4 ABSTRACTWe use latent class ...

The effects of measurement error and omitted variables when using transition matrices to measure intergenerational mobility

“…As far as we are aware there are no analytical results concerning the effects of measurement error or omitted variables for transition probabilities. There are some papers that try to account for measurement error when measuring transitions in the labour market; for example Magnac and Visser [22] and Poterba and Summers [27,28] use auxiliary information on error rates to estimate transitions between labour market states and Breen and Moisio [8] use latent class Markov models to correct for measurement error in estimating poverty transitions. The former require auxiliary data from which the truth can be ascertained, the latter requires observations on multiple transitions to identify the measurement error; these data are unlikely to be available in studies of intergenerational mobility.…”

“…Three types of mobility are distinguished in the literature: absolute mobility, relative mobility and positional mobility. 8 Absolute mobility measures are invariant to the addition of the same positive constant to both fathers' and sons' earnings and thus value movement per se. Relative mobility focuses on measures that are invariant to the multiplication of fathers' and sons' earnings by positive constants; in linear regression models this is captured by the notion of regression to the mean.…”

Poverty Trajectories After Risky Life Course Events in Different European Welfare Regimes

“…Since the total net yearly household income in the ECHP is provided with a time lag of one year, the household income is recalculated by combining income information measured in year T'1 (though referring to the current year T) with household composition information of the current year T (for a discussion, see Debels and Vandecasteele 2008). The recent literature on poverty measurement shows that there is reason to assume that there is an overestimation of poverty mobility rates due to measurement error (Rendtel et al 1998;Breen and Moisio 2004;Whelan and Maître 2006). Especially the number of poverty exits seems to be overestimated and this implies that the poverty length in this article would generally be underestimated.…”

Chronic and transient poverty: Measurement and estimation, with evidence from China

“…The fundamental distinction between the JR and the EDE approaches comes down to whether we measure poverty on the vertical or on the horizontal axis of Figure 1 -if we think of g 1 and g 2 as the poverty gaps of one individual across two periods. The JR approach roughly 7 expresses chronic poverty as P α (Γ 1 (g)) and transient poverty as the difference P α (g) − P α (Γ 1 (g)), both of which can be seen on the vertical axis of Figure 1. The EDE approach defines chronic poverty as Γ 1 (g) and transient poverty as the difference Γ α (g) − Γ 1 (g), both of which can be measured on the horizontal axis of Figure 1.…”