Demography

, Volume 37, Issue 2, pp 155–174 | Cite as

Measuring living standards with proxy variables

  • Mark R. Montgomery
  • Michele Gragnolati
  • Kathleen A. Burke
  • Edmundo Paredes
Measurement and Error

Abstract

Very few demographic surveys in developing countries have gathered information on household incomes or consumption expenditures. Researchers interested in living standards therefore have had little alternative but to rely on simple proxy indicators. The properties of these proxies have not been analyzed systematically. We ask what hypotheses can be tested using proxies, and compare these indicators with consumption expenditures per adult, our preferred measure of living standards. We find that the proxies employed in much demographic research are very weak predictors of consumption per adult. Nevertheless, hypothesis tests based on proxies are likely to be powerful enough to warrant consideration.

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Copyright information

© Population Association of America 2000

Authors and Affiliations

  • Mark R. Montgomery
    • 1
    • 2
  • Michele Gragnolati
    • 3
  • Kathleen A. Burke
    • 4
  • Edmundo Paredes
    • 5
  1. 1.Policy Research Division, Population CouncilState University of New York at Stony BrookUSA
  2. 2.Department of EconomicsState University of New York at Stony BrookUSA
  3. 3.Human Development DepartmentLatin America and the Caribbean Region, World BankUSA
  4. 4.Economics DepartmentState University of New York at CortlandUSA
  5. 5.Department of EconomicsPontificia Universidad Católica del PeruUSA

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