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Estimating small area income deprivation: an iterative proportional fitting approach

Estimating small area income deprivation: an iterative proportional fitting approach
Estimating small area income deprivation: an iterative proportional fitting approach
Small area estimation and in particular the estimation of small area income deprivation has potential value in the development of new or alternative components of multiple deprivation indices. These new approaches enable the development of income distribution threshold based as opposed to benefit count based measures of income deprivation and so enable the alignment of regional and national measures such as the Households Below Average Income with small area measures. This paper briefly reviews a number of approaches to small area estimation before describing in some detail an iterative proportional fitting based spatial microsimulation approach. This approach is then applied to the estimation of small area HBAI rates at the small area level in Wales in 2003-5. The paper discusses the results of this approach, contrasts them with contemporary 'official' income deprivation measures for the same areas and describes a range of ways to assess the robustness of the results.
spatial microsimulation, wales, income deprivation, small area, iterative proportional fitting
Centre for Research in Economic Sociology and Innovation (CRESI)
Anderson, B.
01e98bbd-b402-48b0-b83e-142341a39b2d
Anderson, B.
01e98bbd-b402-48b0-b83e-142341a39b2d

Anderson, B. (2011) Estimating small area income deprivation: an iterative proportional fitting approach Colchester, GB. Centre for Research in Economic Sociology and Innovation (CRESI)

Record type: Monograph (Working Paper)

Abstract

Small area estimation and in particular the estimation of small area income deprivation has potential value in the development of new or alternative components of multiple deprivation indices. These new approaches enable the development of income distribution threshold based as opposed to benefit count based measures of income deprivation and so enable the alignment of regional and national measures such as the Households Below Average Income with small area measures. This paper briefly reviews a number of approaches to small area estimation before describing in some detail an iterative proportional fitting based spatial microsimulation approach. This approach is then applied to the estimation of small area HBAI rates at the small area level in Wales in 2003-5. The paper discusses the results of this approach, contrasts them with contemporary 'official' income deprivation measures for the same areas and describes a range of ways to assess the robustness of the results.

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More information

Published date: 2011
Keywords: spatial microsimulation, wales, income deprivation, small area, iterative proportional fitting
Organisations: Energy & Climate Change Group

Identifiers

Local EPrints ID: 350358
URI: https://eprints.soton.ac.uk/id/eprint/350358
PURE UUID: 7c5a2bcc-9a76-4caa-b345-6606d0073b15
ORCID for B. Anderson: ORCID iD orcid.org/0000-0003-2092-4406

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Date deposited: 26 Mar 2013 10:06
Last modified: 14 Dec 2018 01:30

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Author: B. Anderson ORCID iD

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