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Understandings and Misunderstandings of Multidimensional Poverty Measurement

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  • Sabina Alkire and James Foster

Abstract

Multidimensional measures provide an alternative lens through which poverty may be viewed and understood. In recent work we have attempted to offer a practical approach to identifying the poor and measuring aggregate poverty (Alkire and Foster 2011). As this is quite a departure from traditional unidimensional and multidimensional poverty measurement – particularly with respect to the identification step – further elaboration may be warranted. In this paper we elucidate the strengths, limitations, and misunderstandings of multidimensional poverty measurement in order to clarify the debate and catalyse further research. We begin with general definitions of unidimensional and multidimensional methodologies for measuring poverty. We provide an intuitive description of our measurement approach, including a ‘dual cutoff’ identification step that views poverty as the state of being multiply deprived, and an aggregation step based on the traditional Foster Greer and Thorbecke (FGT) measures. We briefly discuss five characteristics of our methodology that are easily overlooked or mistaken and conclude with some brief remarks on the way forward.

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Paper provided by Queen Elizabeth House, University of Oxford in its series OPHI Working Papers with number ophiwp043.

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Date of creation: May 2011
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Handle: RePEc:qeh:ophiwp:ophiwp043

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  1. Sabina Alkire and James Foster, 2010. "Designing the Inequality-Adjusted Human Development Index (HDI)," OPHI Working Papers ophiwp037, Queen Elizabeth House, University of Oxford.
  2. BOSSERT, Walter & CHAKRAVARTY, Satya R. & D’AMBROSIO, Conchita, 2009. "Multidimensional Poverty and Material Deprivation," Cahiers de recherche 2009-11, Universite de Montreal, Departement de sciences economiques.
  3. Kai-yuen Tsui, 2002. "Multidimensional poverty indices," Social Choice and Welfare, Springer, vol. 19(1), pages 69-93.
  4. François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," Journal of Economic Inequality, Springer, vol. 1(1), pages 25-49, April.
  5. Sabina Alkire & Maria Emma Santos, 2010. "Acute Multidimensional Poverty: A New Index for Developing Countries," Human Development Research Papers (2009 to present) HDRP-2010-11, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
  6. Ma. Casilda Lasso de la Vega, 2009. "Counting poverty orderings and deprivation curves," Working Papers 150, ECINEQ, Society for the Study of Economic Inequality.
  7. 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, 03.
  8. Gaston Yalonetzky, 2011. "Conditions for the Most Robust Poverty Comparisons Using the Alkire-Foster Family of Measures," OPHI Working Papers ophiwp044b, Queen Elizabeth House, University of Oxford.
  9. Duclos, Jean-Yves & Sahn, David & Younger, Stephen D., 2001. "Robust Multidimensional Poverty Comparisons," Cahiers de recherche 0115, Université Laval - Département d'économique.
  10. Gordon Anderson, 2008. "The empirical assessment of multidimensional welfare, inequality and poverty: Sample weighted multivariate generalizations of the Kolmogorov–Smirnov two sample tests for stochastic dominance," Journal of Economic Inequality, Springer, vol. 6(1), pages 73-87, March.
  11. Satya R. Chakravarty & Conchita D'Ambrosio, 2006. "The Measurement Of Social Exclusion," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(3), pages 377-398, 09.
  12. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7), pages 476-487.
  13. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-64, July.
  14. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  15. Decancq, Koen & Lugo, María Ana, 2010. "Weights in multidimensional indices of well-being: an overview," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/262767, Katholieke Universiteit Leuven.
  16. Ravallion, Martin, 2010. "Mashup indices of development," Policy Research Working Paper Series 5432, The World Bank.
  17. Sabina Alkire, 2011. "Multidimensional Poverty and its Discontents," OPHI Working Papers ophiwp046, Queen Elizabeth House, University of Oxford.
  18. A. Atkinson, 2003. "Multidimensional Deprivation: Contrasting Social Welfare and Counting Approaches," Journal of Economic Inequality, Springer, vol. 1(1), pages 51-65, April.
  19. Nicole Rippin, 2010. "Poverty Severity in a Multidimensional Framework: The Issue of Inequality between Dimensions," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 47, Courant Research Centre PEG.
  20. Christopher J. Bennett and Shabana Mitra, 2011. "Multidimensional Poverty: Measurement, Estimation, and Inference," OPHI Working Papers ophiwp047, Queen Elizabeth House, University of Oxford.
  21. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Understandings and Misunderstandings of Multidimensional Poverty Measurement
    by maximorossi in NEP-LTV blog on 2011-12-06 18:34:55
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Cited by:
  1. Christopher T. Whelan & Brian Nolan & Bertrand Maître, 2012. "Multidimensional Poverty Measurement in Europe: An Application of the Adjusted Headcount Approach," Working Papers 201211, Geary Institute, University College Dublin.
  2. Nancy Birdsall, 2011. "Comment on multi-dimensional indices," Journal of Economic Inequality, Springer, vol. 9(3), pages 489-491, September.
  3. 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.
  4. Béassoum, Christian N., 2011. "Pauvreté régionale au Tchad en 2003: une situation de référence revisitée
    [Chad regional poverty profile in 2003: revisiting a baseline]
    ," MPRA Paper 34505, University Library of Munich, Germany.
  5. David Roodman, 2011. "Composite indices," Journal of Economic Inequality, Springer, vol. 9(3), pages 483-484, September.
  6. Peichl, Andreas & Pestel, Nico, 2011. "Multidimensional Well-Being at the Top: Evidence for Germany," IZA Discussion Papers 6170, Institute for the Study of Labor (IZA).
  7. Callander, Emily Joy & Schofield, Deborah J. & Shrestha, Rupendra N., 2011. "Multi-dimensional poverty in Australia and the barriers ill health imposes on the employment of the disadvantaged," The Journal of Socio-Economics, Elsevier, vol. 40(6), pages 736-742.
  8. James Williams & Aisling Murray & Christopher Whelan, 2013. "Multi-dimensional Deprivation in Ireland Among 9-Year Olds in Ireland: An Analysis of the Growing Up in Ireland Survey," Working Papers 201305, Geary Institute, University College Dublin.
  9. Andreas Peichl & Nico Pestel, 2011. "Multidimensional affluence: Theory and applications to Germany and the US," Working Papers 218, ECINEQ, Society for the Study of Economic Inequality.
  10. Jacques Silber, 2011. "A comment on the MPI index," Journal of Economic Inequality, Springer, vol. 9(3), pages 479-481, September.
  11. Erik Thorbecke, 2011. "A comment on multidimensional poverty indices," Journal of Economic Inequality, Springer, vol. 9(3), pages 485-487, September.
  12. Sabina Alkire & James Foster & Maria Santos, 2011. "Where did identification go?," Journal of Economic Inequality, Springer, vol. 9(3), pages 501-505, September.
  13. Beja Jr, Edsel & Yap, David B., 2012. "Counting happiness from the individual level to the group level," MPRA Paper 40214, University Library of Munich, Germany.

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