13.07.2015 Views

A Simple Poverty Scorecard for the Philippines

A Simple Poverty Scorecard for the Philippines

A Simple Poverty Scorecard for the Philippines

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The 15 indicators in Gwatkin et al. are similar to those here:• Characteristics of <strong>the</strong> residence:— Presence of electricity— Source of drinking water— Type of toilet facility— Type of floor— Household members per sleeping room• Whe<strong>the</strong>r household members work <strong>the</strong>ir own or <strong>the</strong>ir family’s agricultural land• Ownership of consumer durables:— Radio— Television— Refrigerator— Bicycle— Motorcycle— Car— Telephone— Boat— TractorGwatkin et al. have three basic goals <strong>for</strong> <strong>the</strong>ir wealth index:• Segment people by quintiles in order to see how health, population, and nutritionvary with socio-economic status• Monitor (via exit surveys) how well health-service points reach <strong>the</strong> poor• Measure coverage of services via small-scale local surveysOf course, <strong>the</strong>se last two goals are <strong>the</strong> same as <strong>the</strong> monitoring and targetinggoals of this paper, and <strong>the</strong> first goal of ranking household be quintiles is akin totargeting. As here, Gwatkin et al. present <strong>the</strong> index in a <strong>for</strong>mat that could bephotocopied and taken to <strong>the</strong> field, although <strong>the</strong>ir index cannot be computed by handbecause <strong>the</strong> points have 4 decimal places and are sometimes negative.The central contrast between <strong>the</strong> PCA-based index and <strong>the</strong> scorecard here isthat because <strong>the</strong> scorecard is linked to an absolute line, it not only can rank householdsbut also link <strong>the</strong>m to quantitative levels of income. Without being based on data that13

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