Micro-Level Estimation of Poverty and Inequality

Recent theoretical advances have brought income and wealth distributions back into a prominent position in growth and development theories, and as determinants of specific socio-economic outcomes, such as health or levels of violence. Empirical investigation of the importance of these relationships, however, has been held back by the lack of sufficiently detailed high quality data on distributions. Household surveys that include reasonable measures of income or consumption can be used to calculate distributional measures but at low levels of aggregation these samples are rarely representative or of sufficient size to yield statistically reliable estimates. At the same time, census (or other large sample) data…