IDEAS home Printed from https://ideas.repec.org/p/qeh/ophiwp/ophiwp007_5.html
   My bibliography  Save this paper

Counting and Multidimensional Poverty Measurement (Short Version)

Author

Listed:
  • Sabina Alkire, James Foster

Abstract

This paper proposes a new methodology for multidimensional poverty measurement consisting of an identification method ρκ ('rho-kapa') that extends traditional approaches, and a class of poverty measures Μα ('mu-alpha') that satisfies several desirable properties including decomposability. Our identification step employs two forms of cutoff: one within each dimension and a second across dimensions that identifies the poor by counting their deprivations. We aggregate using Foster-Greer-Thorbecke measures adjusted for multidimensionality. Our adjusted headcount ratio is well suited for use with ordinal data. Examples from Indonesia and the US illustrate our methodology.

Suggested Citation

  • Sabina Alkire, James Foster, 2009. "Counting and Multidimensional Poverty Measurement (Short Version)," OPHI Working Papers 7_5, Queen Elizabeth House, University of Oxford.
  • Handle: RePEc:qeh:ophiwp:ophiwp007_5
    as

    Download full text from publisher

    File URL: https://ophi.org.uk/working-paper-number-7-5/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. James E. Foster, 2007. "A Class of Chronic Poverty Measures," Vanderbilt University Department of Economics Working Papers 0701, Vanderbilt University Department of Economics.
    2. Comim,Flavio & Qizilbash,Mozaffar & Alkire,Sabina (ed.), 2008. "The Capability Approach," Cambridge Books, Cambridge University Press, number 9780521862875.
    3. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-764, July.
    4. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    5. Alkire, Sabina, 2002. "Dimensions of Human Development," World Development, Elsevier, vol. 30(2), pages 181-205, February.
    6. Gianni Betti & Bruno Cheli & Achille Lemmi & Vijay Verma, 2008. "The Fuzzy Set Approach to Multidimensional Poverty: the Case of Italy in the 1990s," Palgrave Macmillan Books, in: Nanak Kakwani & Jacques Silber (ed.), Quantitative Approaches to Multidimensional Poverty Measurement, chapter 2, pages 30-48, Palgrave Macmillan.
    7. Chakravarty, Satya R. & Deutsch, Joseph & Silber, Jacques, 2008. "On the Watts Multidimensional Poverty Index and its Decomposition," World Development, Elsevier, vol. 36(6), pages 1067-1077, June.
    8. Satya R. Chakravarty, 2019. "A New Index of Poverty," Themes in Economics, in: Satya R. Chakravarty (ed.), Poverty, Social Exclusion and Stochastic Dominance, pages 31-37, Springer.
    9. 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, March.
    10. Foster, James E, 1998. "Absolute versus Relative Poverty," American Economic Review, American Economic Association, vol. 88(2), pages 335-341, May.
    11. Sen, Amartya, 1997. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198292975.
    12. A. B. Atkinson & F. Bourguignon, 1982. "The Comparison of Multi-Dimensioned Distributions of Economic Status," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 49(2), pages 183-201.
    13. Clark, Stephen & Hemming, Richard & Ulph, David, 1981. "On Indices for the Measurement of Poverty," Economic Journal, Royal Economic Society, vol. 91(362), pages 515-526, June.
    14. François Bourguignon & Satya R. Chakravarty, 2019. "The Measurement of Multidimensional Poverty," Themes in Economics, in: Satya R. Chakravarty (ed.), Poverty, Social Exclusion and Stochastic Dominance, pages 83-107, Springer.
    15. Andrea Brandolini, 2008. "On applying synthetic indices of multidimensional well-being: health and income inequalities in selected EU countries," Temi di discussione (Economic working papers) 668, Bank of Italy, Economic Research and International Relations Area.
    16. Behrman, Jere R. & Deolalikar, Anil B., 1988. "Health and nutrition," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 14, pages 631-711, Elsevier.
    17. Sabina Alkire, 2013. "Choosing Dimensions: The Capability Approach and Multidimensional Poverty," Palgrave Macmillan Books, in: Nanak Kakwani & Jacques Silber (ed.), The Many Dimensions of Poverty, chapter 6, pages 89-119, Palgrave Macmillan.
    18. Calvo, Cesar, 2008. "Vulnerability to Multidimensional Poverty: Peru, 1998-2002," World Development, Elsevier, vol. 36(6), pages 1011-1020, June.
    19. Boland, Philip J. & Proschan, Frank, 1988. "Multivariate arrangement increasing functions with applications in probability and statistics," Journal of Multivariate Analysis, Elsevier, vol. 25(2), pages 286-298, May.
    20. Sebastiano Bavetta & Marco Del Seta, 2001. "Constraints and the Measurement of Freedom of Choice," Theory and Decision, Springer, vol. 50(3), pages 213-238, May.
    21. Nanak Kakwani & Jacques Silber (ed.), 2008. "Quantitative Approaches to Multidimensional Poverty Measurement," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-58235-4.
    22. Allison, R. Andrew & Foster, James E., 2004. "Measuring health inequality using qualitative data," Journal of Health Economics, Elsevier, vol. 23(3), pages 505-524, May.
    23. A. Atkinson, 2003. "Multidimensional Deprivation: Contrasting Social Welfare and Counting Approaches," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(1), pages 51-65, April.
    24. Alain Janvry & Ravi Kanbur (ed.), 2006. "Poverty, Inequality and Development," Economic Studies in Inequality, Social Exclusion, and Well-Being, Springer, number 978-0-387-29748-4, Fall.
    25. Blakorby, Charles & Donaldson, David, 1980. "Ethical Indices for the Measurement of Poverty," Econometrica, Econometric Society, vol. 48(4), pages 1053-1060, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adepoju, A., 2018. "determinants of multidimensional poverty transitions among rural households in Nigeria," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276027, International Association of Agricultural Economists.
    2. Shinkai, Naoko, 2016. "Examination of Poverty in Northern Mozambique: A Comparison of Social and Economic Dimensions," Working Papers 133, JICA Research Institute.
    3. Christophe Muller & Asha Kannan & Roland Alcindor, 2016. "Multidimensional Poverty in Seychelles," Working Papers halshs-01264444, HAL.
    4. Vollmer, Frank & Zorrilla-Miras, Pedro & Baumert, Sophia & Luz, Ana Catarina & Woollen, Emily & Grundy, Isla & Artur, Luis & Ribeiro, Natasha & Mahamane, Mansour & Patenaude, Genevieve, 2017. "Charcoal income as a means to a valuable end: Scope and limitations of income from rural charcoal production to alleviate acute multidimensional poverty in Mabalane district, southern Mozambique," World Development Perspectives, Elsevier, vol. 7, pages 43-60.
    5. Ang'u, Cohen & Muthama, Nzioka John & Mutuku, Mwanthi Alexander & M’IKiugu, Mutembei Henry, 2023. "Analysis of energy poverty in Kenya and its implications for human health," Energy Policy, Elsevier, vol. 176(C).
    6. Silvia Terzi & Luca Moroni, 2022. "Local Concordance and Some Applications," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 161(2), pages 457-470, June.
    7. Mekonnen, Daniel Ayalew & Gerber, Nicolas, 2016. "Aspirations and income, food security and subjective well-being in rural Ethiopia," Discussion Papers 234562, University of Bonn, Center for Development Research (ZEF).
    8. Corbelle Cacabelos, Fernando & Troitiño Cobas, Ángela, 2021. "Pobreza multidimensional en España. Una aplicación de la metodología de Alkire y Foster. 2008 - 2015 || Multidimensional poverty in Spain. An application of the Alkire and Foster methodology. 2008 - 2," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 31(1), pages 55-103, June.
    9. Caicedo Hurtado, María Isabel & Castillo Valencia, María, 2021. "Tipologías de pobreza en Cali: un análisis con base en el SISBEN," Revista Tendencias, Universidad de Narino, vol. 22(1), pages 39-70, January.
    10. Bach, Maria & Morgan, Mary S., 2020. "Measuring difference? The United Nations’ shift from progress to poverty," LSE Research Online Documents on Economics 101769, London School of Economics and Political Science, LSE Library.
    11. Villarroel, Paul & Hernani-Limarino, Werner, 2013. "La evolución de la pobreza en Bolivia: un enfoque multidimensional," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB) "San Pablo", issue 20, pages 7-75, Noviembre.
    12. Sayed Ehsan Khandoozi, 2015. "An Index for Economic Justice: The Case of Iran," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 19(2), pages 193-210, Spring.
    13. Omar, Md Abdullah & Hasanujzaman, Muhammad, 2021. "Multidimensional energy poverty in Bangladesh and its effect on health and education: A multilevel analysis based on household survey data," Energy Policy, Elsevier, vol. 158(C).
    14. Getachew Yirga Belete, 2022. "Children’s multidimensional deprivation, monetary poverty and undernutrition in Ethiopia," Review of Economics of the Household, Springer, vol. 20(4), pages 1087-1118, December.
    15. Osmar Loaiza & Guberney Muñetón & Juan Vanegas, 2017. "An exploratory assessment of the relationship between multidimensional poverty and armed conflict: the case of Antioquia, Colombia," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 80(1), pages 11-46, March.
    16. Abre-Rehmat Qurat-ul-Ann & Sana Mahfooz, 2022. "Effect of Household Cooking Energy Poverty on Child Respiratory Health in Pakistan," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 4(2), pages 352-366, June.
    17. Federico HUNEEUS & Oscar LANDERRETCHE & Esteban PUENTES & Javiera SELMAN, 2015. "A multidimensional employment quality index for Brazil, 2002–11," International Labour Review, International Labour Organization, vol. 154(2), pages 195-226, June.
    18. Renuka Mahadevan & Maneka Jayasinghe, 2020. "Examining Multidimensional Poverty in Sri Lanka: Transitioning Through Post War Conflict," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(1), pages 15-39, May.
    19. Shrabanti Maity, 2023. "Financial inclusion also leads to social inclusion—myth or reality? Evidences from self-help groups led microfinance of Assam," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-22, December.
    20. Gibson Masumbu & Kristi Mahrt, 2014. "Multidimensional Welfare in Districts of Zambia: A First Order Dominance Approach," WIDER Working Paper Series wp-2014-137, World Institute for Development Economic Research (UNU-WIDER).
    21. Ngunza Maniata, Kevin, 2014. "Théorie des ensembles flous et décomposition multidimensionnelle de la pauvreté en République Démocratique du Congo [Fuzzy sets theory and Multidimensional poverty in Democratic Republic of Congo]," MPRA Paper 68481, University Library of Munich, Germany, revised 27 Aug 2015.
    22. Salim Shah & Niranjan Debnath, 2022. "Determinants of Multidimensional Poverty in Rural Tripura, India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 20(1), pages 69-95, March.
    23. Sen, Sugata, 2019. "Decomposition of intra-household disparity sensitive fuzzy multi-dimensional poverty index: A study of vulnerability through Machine Learning," MPRA Paper 93550, University Library of Munich, Germany.
    24. Shrabanti Maity, 2024. "Rawls’ difference principle, self-help group, financial inclusion and social cohesion—lore or actuality? Experience of Central Assam," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sabina Alkire, 2008. "Concepts and Measures of Agency," OPHI Working Papers 9, Queen Elizabeth House, University of Oxford.
    2. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 476-487, August.
    3. Dipesh Gangopadhyay & Robert B. Nielsen & Velma Zahirovic-Herbert, 2021. "Methodology and Axiomatic Characterization of a Multidimensional and Fuzzy Measure of Deprivation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(1), pages 1-37, January.
    4. Sabina Alkire, James E. Foster, 2009. "Counting and Multidimensional Poverty Measurement (Revised and Updated)," OPHI Working Papers 32, Queen Elizabeth House, University of Oxford.
    5. Rolf Aaberge & Andrea Brandolini, 2014. "Multidimensional poverty and inequality," Temi di discussione (Economic working papers) 976, Bank of Italy, Economic Research and International Relations Area.
    6. James E. Foster & Joel Greer & Erik Thorbecke, 2010. "The Foster-Greer-Thorbecke (FGT) Poverty Measures: Twenty-Five Years Later," Working Papers 2010-14, The George Washington University, Institute for International Economic Policy.
    7. Satya R. Chakravarty & Pietro Muliere, 2004. "Welfare indicators: a review and new perspectives. 2. Measurement of poverty," Metron - International Journal of Statistics, Dipartimento di Statistica, Probabilità e Statistiche Applicate - University of Rome, vol. 0(2), pages 247-281.
    8. Sabina Alkire, 2011. "Multidimensional Poverty and its Discontents," OPHI Working Papers 46, Queen Elizabeth House, University of Oxford.
    9. James Foster & Joel Greer & Erik Thorbecke, 2010. "The Foster–Greer–Thorbecke (FGT) poverty measures: 25 years later," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 491-524, December.
    10. Sabina Alkire & James Foster, 2011. "Understandings and misunderstandings of multidimensional poverty measurement," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(2), pages 289-314, June.
    11. Diego Battiston & Guillermo Cruces & Luis Lopez-Calva & Maria Lugo & Maria Santos, 2013. "Income and Beyond: Multidimensional Poverty in Six Latin American Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 112(2), pages 291-314, June.
    12. Christoffer Sonne-Schmidt & Finn Tarp & Lars Peter Østerdal, 2013. "Ordinal Multidimensional Inequality," WIDER Working Paper Series wp-2013-097, World Institute for Development Economic Research (UNU-WIDER).
    13. Edward Anderson & Lucio Esposito, 2014. "On the joint evaluation of absolute and relative deprivation," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(3), pages 411-428, September.
    14. Sonne-Schmidt, Christoffer & Tarp, Finn & Østerdal, Lars Peter, 2013. "Ordinal Multidimensional Inequality," WIDER Working Paper Series 097, World Institute for Development Economic Research (UNU-WIDER).
    15. Sabina Alkire and James Foster, 2016. "Dimensional and Distributional Contributions to Multidimensional Poverty," OPHI Working Papers ophiwp100_2.pdf, Queen Elizabeth House, University of Oxford.
    16. Sonne-Schmidt, Christoffer & Tarp, Finn & Peter, Lars, 2011. "Ordinal multidimensional inequality: theory and application to the 2x2 case," MPRA Paper 72838, University Library of Munich, Germany.
    17. Sung-Geun Kim, 2016. "What Have We Called as “Poverty”? A Multidimensional and Longitudinal Perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(1), pages 229-276, October.
    18. Chakravarty, Satya R. & Deutsch, Joseph & Silber, Jacques, 2008. "On the Watts Multidimensional Poverty Index and its Decomposition," World Development, Elsevier, vol. 36(6), pages 1067-1077, June.
    19. Alkire, Sabina & Santos, Maria Emma, 2014. "Measuring Acute Poverty in the Developing World: Robustness and Scope of the Multidimensional Poverty Index," World Development, Elsevier, vol. 59(C), pages 251-274.
    20. Espinoza-Delgado, José & López-Laborda, Julio, 2017. "Nicaragua: evolución de la pobreza multidimensional, 2001-2009," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qeh:ophiwp:ophiwp007_5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: IT Support (email available below). General contact details of provider: https://edirc.repec.org/data/qehoxuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.