By Jeanine Braithwaite
Poverty & Social information in Transition nations (00) by way of Braithwaite, Jeanine - Grootaert, Christiaan - Milanovic, Bran [Hardcover (2000)]
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Additional info for Poverty and Social Assistance in Transition Countries
Grootaert, 1995 for Poland; Grootaert, 1997a for Hungary; World Bank, 1995b for Russia). However, poverty profiles te nd to be more robust than incidence figures, and significant modifications do not occur unless the poverty line is set in the very lowest ranges of the distribution, especially in the lowest decile. Nevertheless, a sensitivity analysis would be useful, and the earlier cited country studies contain analyses with different poverty lines. The sheer bulk of tabular and regression results for a sixcountry study make it impractical to indude a formal sensitivity analysis in this chapter.
Gaiha (1988) used a binary logit model to predict the probability that a rural household in India would be poor. 6 Diamond et al. S. data to predict the probability of belonging to an income quintile, conditional upon certain personal and household characteristics. Diamond et al. S. data set. The multinomiallogit model allows for discontinuities in the underlying welfare model and thus also solves the concern of imposing equal parameters over the entire distribution discussed earlier. In the case of two groups (poor and non-poor) the approach collapses to a binary logit or probit model, although then the underlying welfare model is again continuous (Ravallion, 1996).
In Bulgaria and Hungary, households without elderly members have below average poverty rates and those with elderly members have above average poverty incidence. The latter increases with the number of elderly. Poland is again the exception, where age proves to be an irrelevant dimension of poverty. As discussed previously, Poland's pension system should be credited with this result. The poverty gap shows little variation by age, although it is above average among people over age 65. It does not, however, increase systematically with the number of elderly in a household.
Poverty and Social Assistance in Transition Countries by Jeanine Braithwaite