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Estimating poverty with panel data, comparably : an example from Jordan

Author

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  • Jolliffe,Dean Mitchell
  • Serajuddin,Umar
  • Jolliffe,Dean Mitchell
  • Serajuddin,Umar
Abstract
Poverty estimates based on enumeration from a single point in time form the cornerstone for much of the literature on poverty. Households are typically interviewed once about their consumption or income, and their wellbeing is assessed from their responses. Global estimates of poverty that aggregate poverty counts from all countries implicitly assume that the counts are comparable. This paper illustrates that this assumption of comparability is potentially invalid when households are interviewed multiple times with repeat visits throughout the year. The paper provides an example from Jordan, where the internationally comparable approach of handling the data from repeat visits yields a poverty rate that is 26 percent greater than the rate that is currently reported as the official estimate. The paper also explores alternative definitions of poverty, informed in part by the psychological and biophysical literature on the long-run effects of short-term exposure to poverty or generally adverse environments. This alternative concept of poverty suggests that the prevalence of those who have been affected by poverty in Jordan during 2010 is more than twice as large as the official 2010 estimate of poverty.

Suggested Citation

  • Jolliffe,Dean Mitchell & Serajuddin,Umar & Jolliffe,Dean Mitchell & Serajuddin,Umar, 2015. "Estimating poverty with panel data, comparably : an example from Jordan," Policy Research Working Paper Series 7373, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7373
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    References listed on IDEAS

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    1. Anna D'Souza & Dean Jolliffe, 2012. "Rising Food Prices and Coping Strategies: Household-level Evidence from Afghanistan," Journal of Development Studies, Taylor & Francis Journals, vol. 48(2), pages 282-299, August.
    2. Calogero Carletto & Dean Jolliffe & Raka Banerjee, 2015. "From Tragedy to Renaissance: Improving Agricultural Data for Better Policies," Journal of Development Studies, Taylor & Francis Journals, vol. 51(2), pages 133-148, February.
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    12. Foster, James E., 1983. "An axiomatic characterization of the Theil measure of income inequality," Journal of Economic Theory, Elsevier, vol. 31(1), pages 105-121, October.
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    Cited by:

    1. Eduardo Lora & Miguel Benítez & Diego Gutiérrez, 2024. "Annualizing labor market, inequality, and poverty indicators," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 22(1), pages 131-164, March.
    2. Shamma A. Alam & Gabriela Inchauste & Umar Serajuddin, 2017. "The Distributional Impact of Fiscal Policy in Jordan," Commitment to Equity (CEQ) Working Paper Series 44, Tulane University, Department of Economics.
    3. Gabriela Inchauste & David G. Victor, 2017. "The Political Economy of Energy Subsidy Reform," World Bank Publications - Books, The World Bank Group, number 26216.
    4. Dean Jolliffe & Espen Beer Prydz, 2016. "Estimating international poverty lines from comparable national thresholds," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(2), pages 185-198, June.
    5. Lubinga, Moses H., 2016. "The role of agricultural trade and policy complementarities in poverty reduction in South Africa," NAMC Publications 253094, National Agricultural Marketing Council.
    6. Hmoud S. Olimat, 2018. "Child Poverty and Youth Unemployment in Jordan," Poverty & Public Policy, John Wiley & Sons, vol. 10(3), pages 317-337, September.

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