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  • 1
    Language: English
    Pages: 1 Online-Ressource (31 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als van der Weide, Roy Is Inequality Underestimated in Egypt? Evidence from House Prices
    Abstract: Household income surveys often fail to capture top incomes which leads to an underestimation of income inequality. A popular solution is to combine the household survey with data from income tax records, which has been found to result in significant upward corrections of inequality estimates. Unfortunately, tax records are unavailable in many countries, including most of the developing world. In the absence of data from tax records, this study explores the feasibility of using data on house prices to estimate the top tail of the income distribution. In an application to Egypt, where estimates of inequality based on household surveys alone are low by international standards, the study finds strong evidence that inequality is indeed being underestimated by a considerable margin. The Gini index for urban Egypt is found to increase from 36 to 47 after correcting for the missing top tail
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  • 2
    Language: English
    Pages: Online-Ressource (38 p)
    Edition: 2010 World Bank eLibrary
    Parallel Title: van der Weide, Roy Poverty and inequality maps for rural Vietnam
    Abstract: The objective of the paper is to update the small area estimates of poverty and inequality for rural Vietnam. The new estimates of province and district level poverty for the year 2006, when combined with estimates available for 1999, allow for examination of how poverty has changed in rural Vietnam over the past seven years. The analysis finds that all provinces across the country experienced a noticeable reduction in rural poverty during the period 1999-2006. Some of the largest reductions in poverty are observed for provinces with poverty rates close to the national average. The poorest provinces have also experienced reductions in poverty, albeit at a more modest pace. Provinces and districts with lower levels of inequality in 2006 have seen above average poverty reductions. The authors consider both expenditure and income based measures of poverty and inequality, and find the results to be very similar
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  • 3
    Language: English
    Pages: Online-Ressource (14 p)
    Edition: 2014 World Bank eLibrary
    Parallel Title: van der Weide, Roy GLS Estimation and Empirical Bayes Prediction for Linear Mixed Models with Heteroskedasticity and Sampling Weights
    Abstract: This note adapts results by Huang and Hidiroglou (2003) on Generalized Least Squares estimation and Empirical Bayes prediction for linear mixed models with sampling weights. The objective is to incorporate these results into the poverty mapping approach put forward by Elbers et al. (2003). The estimators presented here have been implemented in version 2.5 of POVMAP, the custom-made poverty mapping software developed by the World Bank
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  • 4
    Language: English
    Pages: Online-Ressource (40 p)
    Edition: 2014 World Bank eLibrary
    Parallel Title: van der Weide, Roy Inequality is Bad for Growth of the Poor (But Not for That of the Rich)
    Abstract: The paper assesses the impact of overall inequality, as well as inequality among the poor and among the rich, on the growth rates along various percentiles of the income distribution. The analysis uses micro-census data from U.S. states covering the period from 1960 to 2010. The paper finds evidence that high levels of inequality reduce the income growth of the poor and, if anything, help the growth of the rich. When inequality is deconstructed into bottom and top inequality, the analysis finds that it is mostly top inequality that is holding back growth at the bottom
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  • 5
    Language: English
    Pages: Online-Ressource (32 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Douidich, Mohamed Estimating Quarterly Poverty Rates Using Labor Force Surveys
    Abstract: The paper shows how Labor Force Surveys can be used effectively to estimate poverty rates using Household Expenditure Surveys and cross-survey imputation methods. With only two rounds of Household Expenditure Survey data for Morocco (2001 and 2007), the paper estimates quarterly poverty rates for the period 2001-2010 by imputing household expenditures into the Labor Force Surveys. The results are encouraging. The methodology is able to accurately reproduce official poverty statistics by combining current Labor Force Surveys with previous period Household Expenditure Surveys, and vice versa. Although the focus is on head-count poverty, the method can be applied to any welfare indicator that is a function of household income or expenditure, such as the poverty gap or the Gini index of inequality. The newly produced time-series of poverty rates can help researchers and policy makers to: (a) study the determinants of poverty reduction or use poverty as an explanatory factor in cross-section and panel models; (b) forecast poverty rates based on a time-series model fitted to the data; and (c) explore the linkages between labor market conditions and poverty and simulate the effects of policy reforms or economic shocks. This is a promising research agenda that can expand significantly the tool-kit of the welfare economist
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  • 6
    Language: English
    Pages: Online-Ressource (33 p)
    Edition: 2014 World Bank eLibrary
    Parallel Title: Elbers, Chris Estimation of Normal Mixtures in a Nested Error Model with an Application to Small Area Estimation of Poverty and Inequality
    Abstract: This paper proposes a method for estimating distribution functions that are associated with the nested errors in linear mixed models. The estimator incorporates Empirical Bayes prediction while making minimal assumptions about the shape of the error distributions. The application presented in this paper is the small area estimation of poverty and inequality, although this denotes by no means the only application. Monte-Carlo simulations show that estimates of poverty and inequality can be severely biased when the non-normality of the errors is ignored. The bias can be as high as 2 to 3 percent on a poverty rate of 20 to 30 percent. Most of this bias is resolved when using the proposed estimator. The approach is applicable to both survey-to-census and survey-to-survey prediction
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  • 7
    Language: English
    Pages: Online-Ressource (38 p)
    Edition: 2013 World Bank eLibrary
    Parallel Title: Fujii, Tomoki Cost-Effective Estimation of the Population Mean Using Prediction Estimators
    Abstract: This paper considers the prediction estimator as an efficient estimator for the population mean. The study may be viewed as an earlier study that proved that the prediction estimator based on the iteratively weighted least squares estimator outperforms the sample mean. The analysis finds that a certain moment condition must hold in general for the prediction estimator based on a Generalized-Method-of-Moment estimator to be at least as efficient as the sample mean. In an application to cost-effective double sampling, the authors show how prediction estimators may be adopted to maximize statistical precision (minimize financial costs) under a budget constraint (statistical precision constraint). This approach is particularly useful when the outcome variable of interest is expensive to observe relative to observing its covariates
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  • 8
    Language: English
    Pages: 1 Online-Ressource (38 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Marrero, Gustavo A Unequal Opportunity, Unequal Growth
    Abstract: This paper argues that inequality can be both good and bad for growth, depending on what inequality and whose growth. Unequal societies may be holding back one segment of the population while helping another. Similarly, high levels of income inequality may be due to a variety of different factors; some of these may be good while others may be bad for growth. The paper tests this hypothesis by "unpacking" both inequality and growth. Total inequality is decomposed into inequality of opportunity, due to observed factors that are beyond the individual's control, and residual inequality. Growth is measured at different steps of the income ladder to verify whether low, middle, and top income households fare differently in societies with high (low) levels of inequality. In an application to the United States covering 1960 to 2010, the paper finds that inequality of opportunity is particularly bad for growth of the poor. When inequality of opportunity is controlled for, the importance of total income inequality is dramatically reduced. These results are robust to different measures of inequality of opportunity and econometric methods
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  • 9
    Online Resource
    Online Resource
    Washington, D.C : The World Bank
    Language: English
    Pages: 1 Online-Ressource (50 p)
    Series Statement: World Bank E-Library Archive
    Parallel Title: Erscheint auch als Kraay, Aart Approximating Income Distribution Dynamics Using Aggregate Data
    Abstract: This paper proposes a methodology to approximate individual income distribution dynamics using only time series data on aggregate moments of the income distribution. Under the assumption that individual incomes follow a lognormal autoregressive process, this paper shows that the evolution over time of the mean and standard deviation of log income across individuals provides sufficient information to place upper and lower bounds on the degree of mobility in the income distribution. The paper demonstrates that these bounds are reasonably informative, using the U.S. Panel Study of Income Dynamics where the panel structure of the data allows us to compare measures of mobility directly estimated from the micro data with approximations based only on aggregate data. Bounds on mobility are estimated for a large cross-section of countries, using data on aggregate moments of the income distribution available in the World Wealth and Income Database and the World Bank's PovcalNet database. The estimated bounds on mobility imply that conventional anonymous growth rates of the bottom 40 percent (top 10 percent) that do not account for mobility substantially understate (overstate) the expected growth performance of those initially in the bottom 40 percent (top 10 percent)
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  • 10
    Language: English
    Pages: 1 Online-Ressource (47 pages)
    Parallel Title: Erscheint auch als Print Version: van der Weide, Roy Intergenerational Mobility around the World
    Abstract: Using individual data from over 400 surveys, this paper compiles a global database of intergenerational mobility in education for 153 countries covering 97 percent of the world's population. For 87 percent of the world's population, it provides trends in intergenerational mobility for individuals born between 1950 to 1989. The findings show that absolute mobility in education-the share of respondents that obtains higher levels of education than their parents-is higher in the developed world despite the higher levels of parental educational attainment. Relative mobility-measuring the degree of independence between parent and child years of schooling-is also found to be greater in the developed world. Together, these findings point to severe challenges in intergenerational mobility in the poorest parts of the world. Beyond national income levels, the paper explores the correlation between intergenerational mobility and a variety of country characteristics. Countries with higher rates of mobility have (i) higher tax revenues and rates of government expenditures, especially on education; (ii) better child health indicators (less stunting and lower infant mortality); (iii) higher school quality (more teachers per pupil and fewer school dropouts); and (iv) less residential segregation
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