Proxy Means Test (PMT) analysis of poverty in Oyo State
This study attempts an assessment of the effectiveness of the proxy means test (PMT) procedure in achieving better targeting of the poor in Oyo State, Nigeria. This is because proper identification and corresponding targeting of the poor is still a challenge in poverty analysis in Africa. The PMT method was therefore used to estimate household expenditures, corresponding poverty statuses of the households, inclusion and exclusion rates using data from the National Living Standard Survey (NLLS) for the five poverty lines considered. The PMT method gave higher percentages of the poor compared to the conventional method for all the five poverty lines. The implication of this finding is that the PMT method could indeed be used alternatively for improved targeting of the poor, especially in Oyo State.
Keywords: Poverty, Proxy Means Test (PMT), Poverty lines, Oyo State, Africa