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Multidimensional Poverty Analysis: Looking for a Middle Ground

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Author Info

  • Ferreira, Francisco H.G.

    ()
    (World Bank)

  • Lugo, Maria Ana

    ()
    (World Bank)

Abstract

Widespread agreement that poverty is a multifaceted phenomenon, encompassing deprivations along multiple dimensions, clashes with often vociferous disagreement about how best to measure these deprivations. Drawing on the recent literature, this short note proposes three methodological alternatives to the false dichotomy between scalar indices of multidimensional poverty, on the one hand, and a “dashboard” approach that looks only at marginal distributions, on the other. These alternatives include simple Venn diagrams of the overlap of deprivations across dimensions, multivariate stochastic dominance analysis, and the analysis of copula functions, which capture the extent of interdependency across dimensions. Examples from the literature on both developing and developed countries are provided.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Policy Papers with number 45.

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Length: 18 pages
Date of creation: Jul 2012
Date of revision:
Handle: RePEc:iza:izapps:pp45

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Keywords: multidimensional poverty; dependency structure; copulas;

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References

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  1. Koen DECANCQ & María Ana LUGO, 2010. "Weights in multidimensional indices of well-being: an overview," Center for Economic Studies - Discussion papers ces10.06, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
  2. Bourguignon, F. & Chakravarty, S.R., 1998. "The Measurement of Multidimensional Poverty," DELTA Working Papers 98-12, DELTA (Ecole normale supérieure).
  3. Maasoumi, Esfandiar & Lugo, Maria, 2006. "The Information Basis of Multivariate Poverty Assessments," Departmental Working Papers 0603, Southern Methodist University, Department of Economics.
  4. Francisco Ferreira, 2011. "Poverty is multidimensional. But what are we going to do about it?," Journal of Economic Inequality, Springer, vol. 9(3), pages 493-495, September.
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As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Multidimensional poverty analysis: Looking for a middle ground
    by maximorossi in NEP-LTV blog on 2012-11-06 16:54:54
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Cited by:
  1. Sabina Alkire and Suman Seth, 2012. "Selecting a Targeting Method to Identify BPL Households in India," OPHI Working Papers ophiwp053, Queen Elizabeth House, University of Oxford.
  2. José Roche, 2013. "Monitoring Progress in Child Poverty Reduction: Methodological Insights and Illustration to the Case Study of Bangladesh," Social Indicators Research, Springer, vol. 112(2), pages 363-390, June.
  3. David Madden, 2013. "Health and Wealth on the Roller-Coaster: Ireland, 2003-2011," Working Papers 201305, School Of Economics, University College Dublin.

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