Poverty comparisons with common relative poverty lines

Tahsin Mehdi

Research output: Contribution to journalArticlepeer-review

Abstract

Relative poverty lines are increasingly being used in poverty comparison studies. Existing methods assume that the distributions being compared are distinct with independent relative poverty lines. However, this practice may be problematic when comparing two subgroups of a population. We follow up on a recent proposal for the usage of common relative poverty lines in such cases, and develop a test for comparing poverty between subgroups of a single population, using inequality restrictions. Monte Carlo experiments are conducted in order to examine the size and power of our proposed test. We illustrate our procedure using some U.S. household income data.
Original languageEnglish
Pages (from-to)2029-2036
JournalCommunications in Statistics - Theory and Methods
Volume46
Issue number4
Early online date22 Mar 2016
DOIs
Publication statusPublished - 16 Feb 2017

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