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Stata Technical Bulletin

STB-48

Options

bygroup (.groupaar^) requests poverty decompositions by population subgroup, with subgroup membership summarized by
groupvar.

Saved results

S-FGTO FGT(0), defined above

S-FGTl FGT(1), defined above

S-FGT2 FGT(2), defined above

Example

Let consider first the case in which there is a common poverty line, taken for illustration to be equal to half average
needs-adjusted income, and decompose poverty by tenure subgroups.

. local z = .5*'mean^z

. povdeco eybhc [fw=wgt], pl('z^z) by(tenure)

Warning: eybhc has 20 values < 0. Used in calculations

Total number of observations = 6468

Weighted total no. of observations = 55851705
Number of observations poor = 1327
Weighted no. of obs poor = 11336320
Mean of eybhc amongst the poor = 86.711

Mean of poverty gaps (poverty line - eybhc) amongst the poor = 29.798

Foster-Greer-Thorbecke poverty indices, FGT(a)
----------₊-----------------------------------
All obs I a=0 a=l a=2

----------₊-----------------------------------
I 0.20297 0.05191 0.02387

----------₊-----------------------------------
FGT(O) : headcount ratio (proportion poor)
FGT(I): average normalised poverty gap
FGT(2): average squared normalised poverty gap
Decompositions by subgroup

Summary statistics for subgroup к = !,...,K

----------₊— Tenure of I HH I	Pop. share	Mean	Mean I poor	— Mean gap I poor
Social r I	0.22852	139.30740	93.30663	— 23.20227
Other re I	0.07194	214.48389	80.45238	36.05652
Owned:mo I	0.50169	278.40619	74.83694	41.67195
Owned: ou I ----------₊—	0.19785	232.90508	84.24892	32.25999 —

Subgroup FGT index estimates, FGT(a)

— Tenure of HH	-+— I I	a=0	a=l	— a=2
— Social r	I	0.45587	0.09078	0.03180
Other re	I	0.22032	0.06818	0.03938
Owned:mo	I	0.08128	0.02907	0.01686
Owned: ou —	I -+—	0.21313	0.05901	0.02686 —

Subgroup poverty ^zshare^z, S_k = v_k.FGT_k(a)/FGT(a)

— Tenure of HH	-+— I I	a=0	a=l	— a=2
— Social r	I	0.51326	0.39964	0.30439
Other re	I	0.07809	0.09449	0.11868
Owned:mo	I	0.20090	0.28095	0.35433
Owned: ou —	I -+—	0.20776	0.22492	0.22260 —

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