The sensitivity of estimates of post- apartheid changes in South African poverty and inequality to key data imputations

dc.creatorArdington, Cally
dc.creatorLam, David
dc.creatorLeibbrandt, Murray
dc.creatorWelch, Matthew
dc.date2013-10-10T19:31:57Z
dc.date2013-10-10T19:31:57Z
dc.date2005-02
dc.date.accessioned2015-05-28T10:06:27Z
dc.date.available2015-05-28T10:06:27Z
dc.date.issued2015-05-28
dc.descriptionWe begin by summarising the literature that has assessed medium-run changes in poverty and inequality in South Africa using census data. According to this literature, over the 1996 to 2001 period both poverty and inequality increased. In this paper we assesses the robustness of these results to the large percentage of individuals and households in both censuses for whom personal income data is missing and to the fact that personal income is collected in income bands rather than as point estimates. First, we use a sequential regression multiple imputation approach to impute missing values for the 2001 census data. Relative to the existing literature, the imputation results lead to estimates of mean income and inequality (as measured by the Gini coefficient) that are higher and estimates of poverty that are lower. This is true even accounting for the wider confidence intervals that arise from the uncertainty that the imputations bring into the estimation process. Next we go on to assess the influence of dubious zero values by setting them to missing and re-doing the multiple imputation process. This increases the uncertainty associated with the imputation process as reflected in wider confidence intervals on all estimates and only the Gini coefficient is significantly different from the first set of estimated parameters. The final imputation exercise assesses the sensitivity of results to the practice of taking personal incomes recorded in bands and attributing band midpoints to them. We impute an alternative set of intra-band point incomes by replicating the intra-band empirical distribution of personal incomes from a national income and expenditure survey undertaken in the year before each census. Using the empirical distributions increases estimated inequality although the differences are relatively small. We finish our empirical work with a discussion of provincial poverty shares as a policy relevant illustration of the importance of dealing with missing values. Overall our results for 1996 and 2001 confirm the major findings from the existing literature while generating more reliable confidence intervals for the key parameter of interest than are available elsewhere.
dc.identifier1-77011-036-4
dc.identifierhttp://hdl.handle.net/11090/656
dc.identifier.ris TY - Working Paper DA - 2015-05-28 DB - OpenUCT DP - University of Cape Town KW - Post-Apartheid KW - Poverty KW - Inequality LK - https://open.uct.ac.za PB - University of Cape Town PY - 2015 T1 - The sensitivity of estimates of post- apartheid changes in South African poverty and inequality to key data imputations TI - The sensitivity of estimates of post- apartheid changes in South African poverty and inequality to key data imputations UR - http://hdl.handle.net/11090/656 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11090/656
dc.languageen
dc.publisherCSSR and SALDRU
dc.publisher.departmentSALDRUen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.relationCSSR/SALDRU Working Paper;106
dc.subjectPost-Apartheid
dc.subjectPoverty
dc.subjectInequality
dc.titleThe sensitivity of estimates of post- apartheid changes in South African poverty and inequality to key data imputations
dc.typeWorking Paper
uct.type.publicationResearchen_ZA
uct.type.resourceWorking Paperen_ZA
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