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Counting and multidimensional poverty measurement

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  • Alkire, Sabina
  • Foster, James

Abstract

This paper proposes a new methodology for multidimensional poverty measurement consisting of an identification method [rho]k that extends the traditional intersection and union approaches, and a class of poverty measures M[alpha]. Our identification step employs two forms of cutoff: one within each dimension to determine whether a person is deprived in that dimension, and a second across dimensions that identifies the poor by 'counting' the dimensions in which a person is deprived. The aggregation step employs the FGT measures, appropriately adjusted to account for multidimensionality. The axioms are presented as joint restrictions on identification and the measures, and the methodology satisfies a range of desirable properties including decomposability. The identification method is particularly well suited for use with ordinal data, as is the first of our measures, the adjusted headcount ratio M0. We present some dominance results and an interpretation of the adjusted headcount ratio as a measure of unfreedom. Examples from the US and Indonesia illustrate our methodology.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 95 (2011)
Issue (Month): 7-8 (August)
Pages: 476-487

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Handle: RePEc:eee:pubeco:v:95:y:2011:i:7-8:p:476-487

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Web page: http://www.elsevier.com/locate/inca/505578

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Keywords: Multidimensional poverty measurement Capability approach Identification FGT measures Decomposability Ordinal variables;

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  1. Caterina Ruggeri Laderchi & Ruhi Saith & Frances Stewart, 2003. "Does it Matter that we do not Agree on the Definition of Poverty? A Comparison of Four Approaches," Oxford Development Studies, Taylor & Francis Journals, vol. 31(3), pages 243-274.
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  6. Joseph Deutsch & Jacques Silber, 2005. "Measuring Multidimensional Poverty: An Empirical Comparison Of Various Approaches," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(1), pages 145-174, 03.
  7. BOSSERT, Walter & D'AMBROSIO, Conchita & PERAGINE, Vito, 2004. "Deprivation and Social Exclusion," Cahiers de recherche 2004-01, Universite de Montreal, Departement de sciences economiques.
  8. Nolan, Brian & Whelan, Christopher T., 1996. "Resources, Deprivation, and Poverty," OUP Catalogue, Oxford University Press, number 9780198287858, September.
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  13. Alkire, Sabina, 2008. "Choosing Dimensions: The Capability Approach and Multidimensional Poverty," MPRA Paper 8862, University Library of Munich, Germany.
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  1. #HEJC for 17/10/2013
    by paulmitchell1 in The Academic Health Economists' Blog on 2013-10-10 05:30:39
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