Measuring poverty persistence with missing data with an application to Peruvian panel data

Stephen Pudney and Yadira Díaz

No 2013-22, ISER Working Paper Series from Institute for Social and Economic Research

Abstract: We consider the estimation of measures of persistent poverty in panel surveys with missing data, focusing on the persistent poverty headcount, its duration-adjusted variant, and a related measure used by the European Union as an indicator of the risk of persistent poverty. We develop a partial identification approach to allow for data missing-not-at-random, and apply it to panel data from Peru for 2007-11. The “worst case†bounds are very wide, but we achieve much more precise identification by adding a set of weak a priori restrictions. Standard non-response weighting adjustments cannot be relied upon to remove missing-data bias.

Date: 2013-11-01
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