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Estimating Comparable Poverty Counts from Incomparable Surveys: Measuring Poverty in India

Author

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  • Alessandro Tarozzi

    (Princeton University)

Abstract
We develop a procedure to estimate poverty counts in India from the 55th Round of the Na- tional Sample Survey (NSS), a large household survey run in 1999-2000. The evidence suggests that a change in the survey design caused the reports on household expenditure to change to an extent that it is impossible, without adjustments, to compare poverty estimates from this survey with those obtained from previous NSS Rounds. More generally, the paper addresses the problem of comparing the distribution of a variable across differently designed surveys, when the different design causes the respondents' reports about the variable to be incomparable across the surveys. The proposed procedure requires only the existence of a set of auxiliary variables whose reports are not affected by the different survey design, and whose relation with the main variable of interest is stable across the surveys. The estimator, instead, does not require specific functional form assumptions on the relation between the main variable of interest and the auxiliary variable. In the context of NSS data, we identify a set of variables whose reports are not systematically affected by the changes implemented in the survey design, and we provide evidence of the stability over time of the distribution of per capita total expenditure conditional on these variables. We describe an experiment to evaluate the performance of the estimator, showing that it provides satisfactory results, both in the estimation of poverty counts and in the estimation of the density of per capita expenditure. Finally, we use our estimator to calculate adjusted estimates for poverty in India using data from the 1999-2000 NSS Survey. The results show a sharp reduction in poverty in the nineties, even if in rural areas the reduction is not as large as that implied by the unadjusted figures.

Suggested Citation

  • Alessandro Tarozzi, 2002. "Estimating Comparable Poverty Counts from Incomparable Surveys: Measuring Poverty in India," Working Papers 186, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    • Handle: RePEc:pri:rpdevs:tarozzi_estimating_comparable_poverty.pdf
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    References listed on IDEAS

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    1. repec:pri:rpdevs:deaton_tarozzi_prices_poverty is not listed on IDEAS
    2. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-1044, September.
    3. repec:pri:rpdevs:deaton_tarozzi_prices_poverty.pdf is not listed on IDEAS
    4. Paul Glewwe & Margaret Grosh, 2000. "Designing Household Survey Questionnaires for Developing Countries : Lessons from 15 Years of the Living Standards Measurement Study, Volume 2," World Bank Publications - Books, The World Bank Group, number 15194.
    5. Paul Glewwe & Margaret Grosh, 2000. "Designing Household Survey Questionnaires for Developing Countries : Lessons from 15 Years of the Living Standards Measurement Study, Volume 3," World Bank Publications - Books, The World Bank Group, number 15195.
    6. Gaurav Datt, 1999. "Has Poverty Declined since Economic Reforms? Statistical Data Analysis," Monash Economics Working Papers archive-31, Monash University, Department of Economics.
    7. Jean Olson Lanjouw & Peter Lanjouw, 2001. "How to Compare Apples And Oranges: Poverty Measurement Based on Different Definitions of Consumption," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(1), pages 25-42, March.
    8. Stephen Howes & Jean Olson Lanjouw, 1998. "Does Sample Design Matter For Poverty Rate Comparisons?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 44(1), pages 99-109, March.
    9. Gibson, John, 2001. "Measuring chronic poverty without a panel," Journal of Development Economics, Elsevier, vol. 65(2), pages 243-266, August.
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    Cited by:

    1. Ira N. Gang & Kunal Sen & Myeong-Su Yun, 2017. "Is Caste Destiny? Occupational Diversification among Dalits in Rural India," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(2), pages 476-492, April.
    2. Kijima, Yoko, 2006. "Caste and Tribe Inequality: Evidence from India, 1983-1999," Economic Development and Cultural Change, University of Chicago Press, vol. 54(2), pages 369-404, January.
    3. Nie, Peng & Rammohan, Anu & Gwozdz, Wencke & Sousa-Poza, Alfonso, 2016. "Developments in Undernutrition in Indian Children Under Five: A Decompositional Analysis," IZA Discussion Papers 9893, Institute of Labor Economics (IZA).
    4. World Bank, 2015. "Tanzania Poverty Assessment," World Bank Publications - Reports 21871, The World Bank Group.
    5. Nitin Kumar Bharti, 2018. "Wealth Inequality, Class and Caste in India, 1961-2012," World Inequality Lab Working Papers hal-02878149, HAL.
    6. Nitin Kumar Bharti, 2018. "Wealth Inequality, Class and Caste in India, 1961-2012," Working Papers hal-02878149, HAL.
    7. Brocker, Johannes, 2005. "Necessary and unnecessary parameter restrictions for CDES demand systems," Conference papers 331358, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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    More about this item

    Keywords

    India;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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