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Inequality Decomposition without Income or Expenditure Data: Using an Asset Index to Simulate Household Income

Kenneth Harttgen and Sebastian Vollmer ()
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Sebastian Vollmer: Department of Global Health and Population, Harvard University, Center for Population and Development Studies

No HDRP-2011-13, Human Development Research Papers (2009 to present) from Human Development Report Office (HDRO), United Nations Development Programme (UNDP)

Abstract: Commonly available survey data for developing countries often do not include income or expenditure data. This data limitation puts severe constraints on standard poverty and inequality analyses. We provide a simple approach to simulate household income based on publicly available Demographic and Health Surveys (DHS) and macroeconomic data. We illustrate our approach with DHS data for Bolivia, Burkina Faso, Indonesia and Zambia. We calculate standard inequality measures and decompose inequality by urban/rural, sex of the household head, household size and education of the household head.

Keywords: Inequality; Asset index; Income simulation (search for similar items in EconPapers)
JEL-codes: D31 I31 I32 O1 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2011-11
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Published as background research for the 2011 Human Development Report.

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