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Dynamics of Multidimensional Poverty and Uni-dimensional Income Poverty: An Evidence of Stability Analysis from China

Author

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  • Sabina Alkire

    (University of Oxford)

  • Yingfeng Fang

    (Wuhan University)

Abstract

In this paper, we construct an illustrative multidimensional poverty index for China and compare it with income poverty using the panel data from multiple waves of the China Health and Nutrition Survey. We use first order stochastic dominance method and regression analysis to test the stability of multidimensional poverty measures and probe the often-observed mis-match between multidimensional measures and income measures. We find as expected that China’s multidimensional poverty is significantly higher in rural areas and in the less developed western provinces. But relative to the income poverty, the multidimensional poverty is less volatile. Also, the ranking of provinces by income and multidimensional poverty varies. The multidimensional poverty measures are somewhat sensitive to the large change of weight, but if we control the indicators’ weight, then the multidimensional poverty measures are stable to a change of indicators.

Suggested Citation

  • Sabina Alkire & Yingfeng Fang, 2019. "Dynamics of Multidimensional Poverty and Uni-dimensional Income Poverty: An Evidence of Stability Analysis from China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(1), pages 25-64, February.
    • Handle: RePEc:spr:soinre:v:142:y:2019:i:1:d:10.1007_s11205-018-1895-2
    DOI: 10.1007/s11205-018-1895-2
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    More about this item

    Keywords

    Poverty measurement; Multidimensional poverty; Stability; Weight; Robustness tests; Mis-match;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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