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Re: Wealth Index (DHS) [message #28715 is a reply to message #28673] Wed, 28 February 2024 14:02 Go to previous messageGo to previous message
Janet-DHS is currently offline  Janet-DHS
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Registered: April 2022
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Following is a response from DHS staff member, Tom Pullum:

There is a lot of information about the wealth index on the DHS website: https://www.dhsprogram.com/topics/wealth-index/index.cfm. Yes, other researchers have constructed alternatives, particularly for non-DHS surveys. When using DHS surveys and data files, I don't see a reason to use an alternative.

The main distinction is between the continuous index (hv271 or v191 or mv191, depending on which file you are working with) and the quintiles (hv270, v190, or mv190), which divide the continuous index into 5 intervals with the same weighted numbers of de jure household residents in the PR file. If you are using all of India, you will use hv270 (etc.) rather than the state versions, which would only be used if you are restricting your analysis to a single state. hv270a would be used for a national analysis if you want to adjust for the fact that wealth tends to be higher in urban areas than in rural areas.

I suggest that you open the PR file and enter "tab hv270 hv025 [iweight=hv005/1000000] if hv102==1, col" and "tab hv270a hv025 [iweight=hv005/1000000] if hv102==1, col". The first command will give equal-sized quintiles at the national level but not within the urban and rural subpopulations. The second command will give equal-sized quintiles at the national level AND within both the urban and rural subpopulations. Whether you select hv270 or hv270a depends on whether you want a measure of wealth that does not differentiate between urban and rural status. I personally prefer to use hv270, rather than hv270a. The tables in the final report use hv270.
 
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