Poverty impact poverty contribution facilities 0 5

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Poverty Impact Poverty Contribution Facilities 0 - 5 Overall Rural Urban Overall Rural Urban Overall Rural Urban Overall Rural Urban Overall Rural Urban Bangladesh 46 39 76 36 30 68 21.1 23.2 10.8 8.6 9.3 4.4 41% 40% 40% IR 54 45 84 45 37 77 16.4 18.1 8.2 5.6 5.8 2.6 34% 32% 31% LIR 33 29 56 22 19 45 31.6 34.9 18.8 13.7 15.9 7.1 43% 45% 38% Source: HIES 2005 and 2010.
210 Data Annex Chapter 3: Measuring Household Income in Bangladesh – HIES 2010 1. This annex provides a summary of how the household income aggregate and its subcomponents (i.e. labor and non-labor income) were constructed based on the data collected in the Household Income and Expenditure Survey (HIES). Additionally, we overview the adjustments used for spatial and temporal price variations as well as the definition for individual labor market status. We also include a section describing methodological differences between the Bangladesh Bureau of Statistics (BBS) and World Bank (WB) total household income aggregates. A. TOTAL HOUSEHOLD INCOME 2. When adding together the two main sources of family income (labor income and non-labor income, we obtain total income in household h . The first component, labor income, is defined at the individual-level while the second, non-labor income, is defined at the household-level. Formally, [∑ ∑ ] (1) where = labor income of individual i of household h in economic activity j ; j = economic activity: self-employed or employer in agriculture or non-agriculture, daily-laborer or salaried in agriculture or non-agriculture; i = individual five years or older; I = indicator function equal to 1 if the individual is engaged in a given activity; n = total number of members of household h ; and = non-labor income. 1. Labor income 3. Total family labor income is the sum of income earned in different economic activities by each household member. For each individual, we observe whether or not (s)he participates in a particular economic activity as well as whether or not (s)he receives labor income for that activity. 4. The HIES asks every individual aged older than five years if she/he has performed different labor activities in the year prior to when the survey was collected. 134 Each labor activity is divided into agricultural and non-agricultural activities, and each of these economic activities comprises four employment statuses: day-laborer, self-employed, employer, and employee. Labor income is defined as the amount earned or received (in-cash or in-kind) from each activity for a particular employment status over the period of reference (previous year). 5. Following the labor status structure of HIES, we are able to identify individual labor income associated with each economic activity. First, we focus on the self-employed and employers 135 and then on day-laborers and employees 136 for agriculture and non-agricultural activities. 134 HIES, Section 4: Economic Activities Self and Wage Employment, part A.

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