2006
DOI: 10.1093/heapol/czl029
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Constructing socio-economic status indices: how to use principal components analysis

Abstract: Theoretically, measures of household wealth can be reflected by income, consumption or expenditure information. However, the collection of accurate income and consumption data requires extensive resources for household surveys. Given the increasingly routine application of principal components analysis (PCA) using asset data in creating socio-economic status (SES) indices, we review how PCA-based indices are constructed, how they can be used, and their validity and limitations. Specifically, issues related to … Show more

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Cited by 2,634 publications
(2,214 citation statements)
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“…Employment status was categorized as either unemployed or employed (either formal or informal employment or self-employed). SES was calculated as according to the INDEPTH Demographic and Health Surveys program that involves a principal component analysis of the household assets, predicting factor scores and then categorizing these scores into quintiles [27]. Housing density was considered as the number of people in a household divided by number of rooms.…”
Section: Methodsmentioning
confidence: 99%
“…Employment status was categorized as either unemployed or employed (either formal or informal employment or self-employed). SES was calculated as according to the INDEPTH Demographic and Health Surveys program that involves a principal component analysis of the household assets, predicting factor scores and then categorizing these scores into quintiles [27]. Housing density was considered as the number of people in a household divided by number of rooms.…”
Section: Methodsmentioning
confidence: 99%
“…Wealth index was calculated using the principal component analysis method commonly used in Demographic and Health Surveys (DHS) Program [17]. …”
Section: Methodsmentioning
confidence: 99%
“…Principal Component Analysis (PCA) was used to determine household wealth index from information collected on housing quality (floor, walls, and roof material), source of drinking water, type of toilet facility, the presence of electricity, type of cooking fuel, and ownership of modern household durable goods (e.g. bicycle, television, radio, motorcycle, sewing machine, telephone, cars, refrigerator, mattress, bed, computer and mobile phone) [3033]. …”
Section: Methodsmentioning
confidence: 99%