Combining sample survey data and census data can yield predicted poverty rates for all households covered by the census. This offers a means to construct detailed poverty maps. But standard errors on the estimated poverty rates are not negligible.
Poverty maps, providing information on the spatial distribution of living standards, are an important tool for policymaking and economic research.
Policymakers can use such maps to allocate transfers and inform policy design. The maps can also be used to investigate the relationship between growth and distribution inside a country, thereby complementing research using cross-country regressions.
The development of detailed poverty maps is difficult because of data constraints. Household surveys contain data on income or consumption but are typically small. Census data cover a large sample but do not generally contain the right information. Poverty maps based on census data but constructed in an ad-hoc manner can be unreliable.
Hentschel, Lanjouw, Lanjouw, and Poggi demonstrate how sample survey data and census data can be combined to yield predicted poverty rates for all households covered by the census. This represents an improvement over ad hoc poverty maps. However, standard errors on the estimated poverty rates are not negligible, so additional efforts to cross-check results are warranted.
This paper—a joint product of the Development Research Group and the Poverty Reduction and Economic Management Network, Poverty Division—is part of a larger effort in the Bank to study the spatial distribution and determinants of poverty. Copies of the paper are available free from the World Bank, 1818 H Street NW, Washington, DC 20433. Please contact Peter Lanjouw, room MC3-555, telephone 202-473-4529, fax 202-522-1153, Internet address planjouw@worldbank.org. Jesko Hentschel may be contacted at jhentschel@worldbank.org. (31 pages)
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