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We used the principal component analysis methods to construct wealth quintiles across households in Nigeria.
Factor analysis (principal component analysis) was done using variables land size, type of house, availability of certain household items, type of water supply and type of toilet to construct "wealth status" [ 19].
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Household wealth is measured using a constructed wealth index based on ownership of 25 household durable assets, house and roof material, livestock ownership and water source.
As a measure of economic status, we constructed wealth quintiles to make them comparable between the two surveys.
Internal consistency of the constructed wealth index was assessed by examining its distribution against the wealth quintiles of the household variables that had been used for its creation.
Therefore, in this study the asset based approach was used to construct a wealth index across households in Nigeria using the NARHS Plus data.
Lessons to construct the wealth index were taken from Vyas and Kumaranayake, and Howe and colleagues.
Principal component analysis methodology was used to estimate household asset weights and construct a wealth index [ 32].
First, we used the data on ownership of durable goods and housing characteristics to construct a wealth index score by Principal Component Analysis using the first principal component [ 14].
We applied principal components analysis (PCA) to construct a wealth index for our study population, separately for the slum and non-slum areas (26).
29 To construct a wealth index, principal component analysis (PCA) was carried out using 15 socio-economic variables (see Supplemental file for the details).
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