Dear all,
I have two household surveys (1995 and 2001) and I want to decompose
poverty change over time. Following Kakwani, the percentage change in
poverty can be written as :
Total poverty change = Growth effect + Inequality effect
I would like to compute the two effects using results from these
surveys (data indicate an increase in mean income of 17 %).
I know how to compute the "growth effect" (cf question from Brian
Sartene and response from De Hoyos).
The diffculty that I am facing is how to compute the "inequality
effect". I would be grateful for any useful and practical insight.
Thanks a lot.
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