Abstract Social scientists have increasingly used asset‐based wealth scores, like the Demographic and Health Survey (DHS) wealth index, to assess economic disparities. However, current indices primarily capture wealth in globalized market economies, thus ignoring other forms of prosperity, such as success in agricultural activities. Using a simple extension to the standard estimation of the DHS wealth index, we describe procedures for estimating an agricultural wealth index (AWI) that complements market‐based wealth indices by capturing household success in agricultural activities. We apply this procedure to household data from 129 DHS surveys from over 40 countries with sufficient land and livestock data to estimate a reliable and consistent AWI. We assess the construct validity of the AWI using benchmarks of growth in both adults and children. This alternative measure of wealth provides new opportunities for understanding the causes and consequences of wealth inequality, and how success along different dimensions of wealth creates different social opportunities and constraints for health and well‐being.
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Evaluating the Performance of Five Asset-based Wealth Indices in Predicting Socioeconomic Position in Rural Bangladesh
Social scientists have developed numerous asset-based wealth indices to assess and target socioeconomic inequalities globally. However, there are no systematic studies of the relative performance of these different measures as proxies for socioeconomic position. In this study, we compare how five asset-based wealth indices—the International Wealth Index (IWI), the Standard of Living portion of the Multi-Dimensional Poverty Index (MPI-SL), the Poverty Probability Index (PPI), the Absolute Wealth Estimate (AWE), and the DHS Wealth Index (DHS)—predict benchmarks of socioeconomic position across 11 communities in rural Bangladesh. All indices were highly correlated. The IWI best explained variation in individual and community ranking of economic well-being, while the PPI best explained variation both between and within communities for total household wealth and a general measure of subjective social status.
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- Award ID(s):
- 1658766
- PAR ID:
- 10350821
- Date Published:
- Journal Name:
- Field Methods
- Volume:
- 34
- Issue:
- 2
- ISSN:
- 1525-822X
- Page Range / eLocation ID:
- 108 to 124
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
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