Poverty and inequality measures in practice: A basic reference guide with Stata examples


Since programming is typically undertaken independently and similar procedures may be done in different ways, it can be difficult for team members to understand each other’s code. It is also common for the original author of a do-file to forget why certain decisions were made or what a line of code means. For these reasons, it is important to create a standardized method for presenting readable do-files and systematizing how we export results. This is why the LAC TSD produced this two-section handbook, which has the basic information that any research assistant would need to calculate and understand the common methodologies used in our daily work in GPVDR. This handbook provides introductions to basic analytic measures and concepts often used by the Poverty team for the Latin America and the Caribbean region in the World Bank. Accordingly, it is intended as a practical and intuitive source for research assistants who need a clear and quick way to perform basic poverty and inequality calculations using Stata. In comparison to more advanced econometrics books such as Microeconometrics using Stata (Cameron and Trivedi 2010), or Microeconometrics: Methods and Applications (Cameron and Trivedi 2005), this handbook presents little theory, focusing instead on topics directly related with World Bank goals.