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Selecting a Sampling Methodology for Social Indicators Image

Promoting Inclusive Markets and Financial Systems

Selecting a Sampling Methodology for Social Indicators

Summary

The purpose of this paper is to describe the various sampling options for MFIs interested in testing social indicators and/or poverty tools, such as the Grameen Foundation Progress out of Poverty Index™ (PPI) and the USAID Poverty Assessment Tool (PAT). The paper guides readers through the steps required to use different sampling methods necessary for a successful sampling strategy for social indicators. The paper draws on real examples of sampling methods from MFIs that have participated in the three phases of the Ford Foundation and CGAP-initiated Social Indicators Project to illustrate what has worked for the MFIs and what has been a learning experience. The paper is organized as follows. A brief discussion on the census versus sampling debate highlights situations where a census approach would be more relevant. This is followed by a description of types of sampling—probability and non-probability sampling methods, as well as longitudinal and cross-sectional sampling techniques. A brief discussion on appropriate sample size is followed by a description of sampling requirements and strategy for implementing the PPI and PAT poverty tools. In the conclusion is presented a sampling matrix to help MFIs select the right sampling method for their organization.

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