Strengths and limitations of relative wealth indices derived from big data in Indonesia

Daniele Sartirano, Kyriaki Kalimeri, Ciro Cattuto, Enrique Delamónica, Manuel Garcia-Herranz, Anthony Mockler, Daniela Paolotti, Rossano Schifanella

Abstract: Accurate relative wealth estimates in Low and Middle-Income Countries (LMICS) are crucial to help policymakers address socio-demographic inequalities under the guidance of the Sustainable Development Goals set by the United Nations. Survey-based approaches have traditionally been employed to collect highly granular data about income, consumption, or household material goods to create index-based poverty estimates. However, these methods are only capture persons in households (i.e., in the household sample framework) and they do not include migrant populations or unhoused citizens. Novel approaches combining frontier data, computer vision, and machine learning have been proposed to complement these existing approaches. However, the strengths and limitations of these big-data-derived indices have yet to be sufficiently studied. In this paper, we focus on the case of Indonesia and examine one frontier-data derived Relative Wealth Index (RWI), created by the Facebook Data for Good initiative, that utilizes connectivity data from the Facebook Platform and satellite imagery data to produce a high-resolution estimate of relative wealth for 135 countries. We examine it concerning asset-based relative wealth indices estimated from existing high-quality national-level traditional survey instruments, the USAID-developed Demographic Health Survey (DHS), and the Indonesian National Socio-economic survey (SUSENAS). In this work, we aim to understand how the frontier-data derived index c...