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16


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*'meanz

. povdeco eybhc [fw=wgt], pl('zz) 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 zsharez, 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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