Mapping socio-economic status using mixed data: a hierarchical Bayesian approach

We propose a Bayesian hierarchical model to estimate a socio-economic status (SES) index based on mixed dichotomous and continuous variables. In particular, we extend Quinn's ([2004]. Bayesian factor analysis for mixed ordinal and continuous responses. <i>Political Analysis, 12</i>(4), 338-353. https://doi.org/10.1093/pan/mph022) and Schliep and Hoeting's ([2013]. Multilevel latent Gaussian process model for mixed discrete and continuous multivariate response data. <i>Journal of Agricultural, Biological, and Environmental Statistics, 18</i>(4), 492-513. https://doi.org/10.1007/s13253-013-0136-z) factor analysis models for mixed dichotomous and continuous variables by allowing a spatial hierarchical structure of key parameters of the model. Unlike most SES assessment models proposed in the literature, the hierarchical nature of this model enables the use of census observations at the household level without needing to aggregate any information <i>a priori</i>. Therefore, it better accommodates the variability of the SES between census tracts and the number of households per area. The proposed model is used in the estimation of a socio-economic index using 10% of the 2010 Ghana census in the Greater Accra Metropolitan area. Out of the 20 observed variables, the number of people per room, access to water piping and flushable toilets differentiated high and low SES areas the best.