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Transformation of data items into code 1 and 0 [message #20547] Tue, 17 November 2020 22:38 Go to next message
Teresa Olivares is currently offline  Teresa Olivares
Messages: 1
Registered: November 2020
Member
I just want to clarify why in the construction of the wealth index all present data items/variables are transformed into 1.

for example in drinking water supply why even unimproved drinking water supply need to recode to 1 (eg. river, unprotected well, etc)

however, in some articles, only those improved sources were recode to 1.

thank you

Re: Transformation of data items into code 1 and 0 [message #21560 is a reply to message #20547] Wed, 18 November 2020 16:01 Go to previous message
Bridgette-DHS is currently offline  Bridgette-DHS
Messages: 2315
Registered: February 2013
Senior Member

Following is a response from DHS Research & Data Analysis Director, Tom Pullum:

The wealth index is constructed with a factor analysis using binary (1/0) variables constructed for separate categories of variables such as source of drinking water. It is expected that improved water will be given a positive loading and unimproved sources will get a negative loading, but this is determined by the procedure and not in advance. That's why all sources are included.
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