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(Re)Counting the Poor in Peru: A Multidimensional Approach

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  • Juan F. Castro
  • Jessica Baca
  • Juan P. Ocampo

Abstract

Peruvian monetary poverty declined by 12 percentage points in only four years. Based on the Alkire-Foster multidimensional headcount, we build a simple comparative framework to measure the tension between this result and a broader indicator of deprivation. We select six dimensions and apply this framework to Peruvian data for 2004 and 2008. The results indicate that if we rely only on monetary standards, there is an increased risk of classifying as non-poor individuals who still suffer significant deprivation. Deprivations are similar across regions and are largely related to the lack of adequate water and sanitation services. This last result reveals an opportunity to focalize public investment efforts.

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Bibliographic Info

Article provided by Instituto de Economía. Pontificia Universidad Católica de Chile. in its journal Latin American Journal of Economics-formerly Cuadernos de Economía.

Volume (Year): 49 (2012)
Issue (Month): 1 (May)
Pages: 37-65

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Handle: RePEc:ioe:cuadec:v:49:y:2012:i:1:p:37-65

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Keywords: Multidimensional poverty; monetary poverty; Peru;

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References

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  1. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
  2. Chakravarty, Satya R., 1983. "A new index of poverty," Mathematical Social Sciences, Elsevier, vol. 6(3), pages 307-313, December.
  3. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-64, July.
  4. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 476-487, August.
  5. Arie Kapteyn & Sara van de Geer & Huib van de Stadt, 1985. "The Impact of Changes in Income and Family Composition on Subjective Measures of Well-Being," NBER Chapters, in: Horizontal Equity, Uncertainty, and Economic Well-Being, pages 35-68 National Bureau of Economic Research, Inc.
  6. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  7. Diego Battiston & Guillermo Cruces & Luis Felipe Lopez Calva & Maria Ana Lugo & Maria Emma Santos, 2009. "Income and Beyond: Multidimensional Poverty in six Latin American countries," CEDLAS, Working Papers 0090, CEDLAS, Universidad Nacional de La Plata.
  8. Juan Castro, 2006. "Política fiscal y gasto social en el Perú: Cuánto se ha avanzado y qué más se puede hacer para reducir la vulnerabilidad de los hogares," Working Papers 06-05, Departamento de Economía, Universidad del Pacífico, revised Jul 2006.
  9. Gustavo Yamada & Juan Castro, 2007. "Poverty, inequality, and social policies in Peru: As poor as it gets," Working Papers 07-06, Departamento de Economía, Universidad del Pacífico, revised Feb 2007.
  10. Escobal, J. & Ponce, C., 2008. "Dinámicas Provinciales de Pobreza en el Perú 1993 - 2005," Working papers 011, Rimisp Latin American Center for Rural Development.
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Cited by:
  1. Enrique Vásquez, 2012. "El Perú de los pobres no visibles para el Estado: La inclusión social pendiente a julio de 2012," Working Papers 12-04, Departamento de Economía, Universidad del Pacífico, revised Jul 2012.

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