Authors: Nurul Syafiah Abd Naeeim and Nuzlinda Abdul Rahman
Abstract: Economy plays an important role in helping a country to become a developed nation status. Hence, study about poverty, inequality and socio-economic should be measured precisely to provide a meaningful understanding for the target audiences. This study describes the construction of socio-economic status (SES) index using factor analysis for every district in Peninsular Malaysia. Next, the SES index constructed will be classified into several optimum components based on normal mixture model. In this model, the SES index is assumed to come from several subpopulations known as components, having similar distribution but with different parameters. Based on this approach, the optimum number of components obtained is four with about 22% of districts can be categorized as well-developed areas, and 21% of districts in Peninsular Malaysia are still unprivileged. The distribution of the SES index also shows that the west coast areas are well-developed compared to the east coast areas, implying the development in Malaysia is still not uniformly distributed.
Keywords: Socio-economic Status; Index Classification; Normal Mixture Model; Bootstrapping; Cluster Analysis