As every Friday, we are posting one of the lecture notes on Economic Policies for Growth and Poverty Reduction, from Raj Nallari. This week the note deals with how to collect the data to support poverty analysis.
The main instrument for collecting data are household surveys. Measures of poverty and inequality are always based on data collected using sample surveys of households. The fact that actual measures of poverty and inequality are generated from a sample and not from the entire population has important implications.
Ideally, we should not have to rely solely on a household level survey in making interpersonal comparisons of welfare. A separate community survey can provide useful supplementary data on the local prices of a range of goods and local public services. By matching these to the household level data, one can greatly improve the accuracy and coverage of household welfare assessments. This has become common practice in the World Bank’s Living Standards Measurement Study surveys.
Read the whole note.
Next Friday: National Income Accounts / Introduction and Macroeconomic Sectors