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Working Paper

Estimating Poverty with Panel Data, Comparably : An Example from Jordan

HOUSEHOLD INCOMES LIVING STANDARDS PER CAPITA CONSUMPTION POVERTY LINE ECONOMIC GROWTH FAMINES SQUARED POVERTY GAP INCOME FOOD CONSUMPTION AVERAGE LEVEL POVERTY INDICES AGRICULTURAL PRODUCTION POVERTY ESTIMATES NATIONAL POVERTY LINE INTERNATIONAL ORGANIZATIONS CONSUMPTION DATA DEVELOPING COUNTRIES HEALTH INSURANCE HOUSING NATIONAL POVERTY POOR PEOPLE POVERTY GAP INDEX INCOME SUPPORT NATIONAL POVERTY RATE FOOD CONSUMPTION DATA GLOBAL POVERTY SOCIAL PROGRAMS MEASURES POVERTY MEASURES REGION POVERTY REDUCTION COPING STRATEGIES ECONOMIC ACTIVITY PUBLIC POLICY REDUCTION STRATEGY FOOD BASKET DEFINITIONS OF POVERTY MEASURING POVERTY RURAL HOUSEHOLDS DEVELOPMENT ECONOMICS LOW-INCOME COUNTRIES DECOMPOSABLE POVERTY MEASURES POVERTY GAP INCOME INEQUALITY TRANSFERS CHRONIC POVERTY HOUSEHOLD SURVEYS BUSINESS CYCLE PUBLIC WORKS PROGRAMS CHANGES IN POVERTY CREDIT PROGRAMS POVERTY STATISTICS CASH TRANSFERS DECOMPOSABLE POVERTY POVERTY PROFILE REAL INCOMES UNEMPLOYMENT DEVELOPMENT RESEARCH POVERTY LINES CONSUMPTION POVERTY DATA HUMAN CAPITAL POVERTY COMPARISONS POVERTY MEASURE POVERTY MEASUREMENT REDUCTION IN POVERTY POLICY MAKERS CHRONICALLY POOR AGGREGATE POVERTY DENSITY FUNCTION FAMILY INCOME MEASUREMENT OF POVERTY HEADCOUNT INDEX CATEGORICAL TARGETING IMPACT OF SHOCKS POVERTY REDUCTION STRATEGY NUTRITION HOUSEHOLD BUDGET PUBLIC WORKS SMALL-SCALE AGRICULTURE ECONOMICS INSURANCE TARGETING MACROECONOMIC SHOCKS RICH COUNTRIES ECONOMIC OPPORTUNITIES CONSUMPTION SMOOTHING POOR POPULATION EXTREME POVERTY POVERTY HEADCOUNT POVERTY POLICY IMPLICATIONS HOUSEHOLD CONSUMPTION POVERTY UPDATE HOUSEHOLD WELFARE POLICY RESEARCH POVERTY RATE POOR FOOD PRICES CHILD POVERTY SQUARED POVERTY GAP INDEX ELIGIBILITY DEVELOPMENT POLICY INCOME VOLATILITY INEQUALITY GROWTH POOR HOUSEHOLDS POOR PERSON
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World Bank, Washington, DC
Middle East and North Africa | Jordan
2015-08-17T19:35:03Z | 2015-08-17T19:35:03Z | 2015-07

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.

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