Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/248356 
Authors: 
Year of Publication: 
2021
Series/Report no.: 
WIDER Working Paper No. 2021/142
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
I discuss the applicability of the recentered influence function (RIF) to the analysis of poverty differentials between distributions (regression-based decomposition into composition and income structure effects). I show that the predominant approach in the empirical literature estimates the relationship between individual poverty functions of additive measures, particularly the head-count ratio, and household attributes. Given that the recentered influence function of these measures is also their poverty function, this approach is simply a specific case of the onestage recentered influence function decomposition, using non-linear probability models. However, the use of recentered influence function provides a more general approach that better accounts for individual contributions to poverty for non-additive poverty measures (such as that of Sen and its extensions) as well. At the same time, the use of reweighting in a first stage allows to avoid imposing any functional form on the relationship between poverty and characteristics at the aggregate level.
Subjects: 
poverty
recentered influence function (RIF)
regression-based decomposition
JEL: 
C46
I32
Persistent Identifier of the first edition: 
ISBN: 
978-92-9267-082-5
Document Type: 
Working Paper

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