Measuring Multidimensional Poverty in Palestine

Poverty is of particular concern to policy makers and international agencies in the context of Palestine because of the continued and increased hardship caused mainly by a prolonged colonial occupation. In this paper, we provide a multi-dimensional poverty index (MPI) for Palestine using data from the most recent Palestine Expenditure and Consumption Survey (PECS) survey conducted in 2016/2017. The sample design of this survey was proportional to population size including 3,739 completed interviews and was specifically designed to provide requisite data for designing an MPI. The proposed Palestine MPI is unique in the region in at least two respects: it is rightsbased and includes monetary as well as non-monetary dimensions. It consists of 7 dimensions and 22 indicators, with the current monetary poverty line as one of the dimensions and indicators and the remaining non-monetary dimensions including education, health, employment, housing conditions, safety and use of assets, and personal freedom. The findings show that about 24% of the Palestinian population is multidimensionally poor. The incidence of poverty is four times higher in the Gaza Strip than in the West Bank. Significant differences in poverty are observed by place of residence, refugee status and household size. In terms of poverty composition, monetary poverty accounts for about 45% of overall poverty in Palestine. Education, employment, and housing conditions also have relatively high contributions to poverty – over 10% each. It is hoped that this index will be a useful instrument for monitoring poverty and informing public policy.