Exercise 6.2
Using DECA-7, decompose total poverty according to the socio-economic categories AGE and EDUC.

Answer

STEP 1: Initialising  the sampling weight: EDIT|Set Sample Design

 

  • After choosing the appropriate variable(s), click on  the button OK.

STEP 2: Use the DAD Application: DECOMPOSITION|FGT : Decomposition by groups

  • After choosing the appropriate variable(s) and parameters, click on the  Compute button.

RESULTS

  • Group variable = AGE

FGT (Poverty Decomposition)

Session Date Thu Jul 08 12:54:18 EDT 2004
Execution Time 0.047 sec
FileName DECA-7.daf
OBS 1000
Sampling Weight WHHLD
Variable of interest EXPEQ
Size variable SIZE
Group variable AGE
Group Number 1-2-3-4
Option Normalised = NO
Parameter α= 0
Estimate 0,47318047
  (0,02658057)
Poverty Line 373,00000000
  (0,00000000)

Group #

Estimate

Proportion

Absolute Contribution

Relative Contribution

1

0,28307122
0,16391121
0,04639855
0,09805676
 
(0,04552764)
(0,01528204)
(0,00909035)
(0,01936285)

2

0,45412454
0,39398643
0,17891890
0,37811980
 
(0,04257509)
(0,02566771)
(0,02205095)
(0,04166597)

3

0,55997902
0,44143385
0,24719369
0,52240890
 
(0,04139529)
(0,02655067)
(0,02554460)
(0,04282826)

4

1,00000000
0,00066927
0,00066927
0,00141441
 
(0,00000006)
(0,00067008)
(0,00067008)
(0,00141836)

TOTAL

---
1.0
0,47318047
1.0
 
 
(0.00)
(0,02658057)
(0.00)

 

  • Group variable = EDUC

FGT (Poverty Decomposition)

Session Date Thu Jul 08 12:55:36 EDT 2004
Execution Time 0.062 sec
FileName DECA-7.daf
OBS 1000
Sampling Weight WHHLD
Variable of interest EXPEQ
Size variable SIZE
Group variable EDUC
Group Number 1-2-3-4-5-6
Option Normalised = NO
Parameter α= 0
Estimate 0,47318047
  (0,02658057)
Poverty Line 373,00000000
  (0,00000000)

Group #

Estimate

Proportion

Absolute Contribution

Relative Contribution

1

0,49952614
0,34506246
0,17236772
0,36427480
 
(0,04338807)
(0,02461838)
(0,02053722)
(0,04017260)

2

0,16723821
0,06400983
0,01070489
0,02262327
 
(0,07512765)
(0,01014365)
(0,00547723)
(0,01153896)

3

0,42389274
0,12347495
0,05234013
0,11061347
 
(0,06735359)
(0,01494878)
(0,01263889)
(0,02611626)

4

0,22583795
0,06253302
0,01412233
0,02984555
 
(0,07507236)
(0,00981819)
(0,00554637)
(0,01171248)

5

0,00876594
0,04787236
0,00041965
0,00088686
 
(0,00880842)
(0,00779405)
(0,00042026)
(0,00088981)

6

0,62519819
0,35704800
0,22322577
0,47175610
 
(0,04868060)
(0,02719378)
(0,02534052)
(0,04338341)

TOTAL

---
1.0
0,47318047
1.0
 
 
(0.00)
(0,02658057)
(0.00)