Abstract

This paper explores the differences between the qualitative life history interview approach and the quantitative expenditures approach to analysing poverty incidence and poverty dynamics. Based on a Rwandan case study in which 22 households were interviewed both quantitatively and qualitatively, we show that although the approaches are different in nature, they yield similar results in terms of categorising households as either poor or non-poor. When comparing poverty trajectories, we observe more differences, which can be explained by the proximity to the poverty line, differences in the treatment of assets, different period accounting for time inherent in one or the other method, and by the continuous nature of the quantitative variables compared to the discrete character of the qualitative indicators. When comparing well-being dynamics using the two methods, we find a positive correlation between expenditure growth and change in well-being, especially when the time period is long enough. In addition, we show that the extra knowledge gained from using a mix of both approaches more than compensates for any different results.

Authors: Kirezi J. and Simons A.

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