A study on the classification of households in Rwanda based on factor scores
Pacifique Nizeyimana1 · Kee-Won Lee2 · Songyong Sim3
123Department of Statistics, Hallym University
Correspondence to: Professor, Department of Statistics, Hallym University, Chuncheon 24252, Korea. E-mail: sysim@hallym.ac.kr
Received February 17, 2018; Revised March 13, 2018; Accepted March 14, 2018.
This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.
- Abstract
- Many researchers have focused on grouping or classifying households into different categories based on either income/consumption or household assets. However, these practices may lead to an inadequate classification due to Rwanda's unique family structure. In Rwanda, households are classified into six socio-economic classes known as `Ubudehe categories'. This classification is based on subjective perceptions of people. In this study, we propose to use household assets as well as income/consumption to classify Rwandan households into different socio-economic categories. These approaches are summated Likert scale method and factor score method. When these two methods are compared by a discriminant analysis, the factor score method brings out more reliable results than Likert method.
- Keywords : Factor score, household assets, summated Likert scale, Ubudehe categories, wealth index.
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