How to Reduce the Impact of Equivalence Scales on Poverty Measurement: Evidence from Turkey

Gianni Betti, Mehmet Ali Karadag (), Ozlem Sarica () and Baris Ucar ()
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Mehmet Ali Karadag: Turkish Statistical Institute
Ozlem Sarica: Turkish Statistical Institute
Baris Ucar: Turkish Statistical Institute

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2017, vol. 132, issue 3, No 4, 1023-1035

Abstract: Abstract The main aim of the paper is to contribute to the poverty measurement literature by demonstrating a method to reduce the impact of equivalence scales in poverty measurement. This is accomplished by choosing the most appropriate reference household type. The results showed that one adult household is certainly not suitable for being the reference household type. When one adult household is set as the reference, in the range of no equivalence scale and per capita equivalence scale, poverty head count ratio changes from 1 to 48 %, showing the huge effect of the equivalence scale choice. Also the analyses at household size level showed that one adult household type is not convenient to be the reference household type. On the other hand, no clear distinction could be made between central household types, but the importance of choosing a household type close to the center was demonstrated for Turkish data.

Keywords: Measurement of poverty; Equivalence scales; Reference household type; Turkey (search for similar items in EconPapers)
JEL-codes: I32 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s11205-016-1335-0

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