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Multidimensional Poverty Measurement with Economic Well-being, Capability, and Social Inclusion: A Case from Kathmandu, Nepal

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  • Udaya Wagle

Abstract

The contemporary, income and consumption approaches to poverty definition and measurement, which are unidimensional in nature, are unable to capture multiple dimensions of poverty. The multidimensional approach operationalized here in the structural equation framework suggests that the multidimensionality of poverty hypothesis holds for the population in Kathmandu, Nepal, including economic well-being, capability, and social inclusion. While all of these dimensions are integral, the capability dimension appears to be highly influential, affecting every other poverty dimension. This paper identifies indicators appropriate to measure different poverty dimensions and, although the multidimensional approach necessitates further work for more simplified and policy relevant application, alternative ways are explored with their practical implications.

Suggested Citation

  • Udaya Wagle, 2005. "Multidimensional Poverty Measurement with Economic Well-being, Capability, and Social Inclusion: A Case from Kathmandu, Nepal," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 6(3), pages 301-328.
  • Handle: RePEc:taf:jhudca:v:6:y:2005:i:3:p:301-328
    DOI: 10.1080/14649880500287621
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    Citations

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    Cited by:

    1. John Ataguba & William M. Fonta & Hyacinth E. Ichoku, 2011. "The Determinants of Multidimensional Poverty in Nsukka, Nigeria," Working Papers PMMA 2011-13, PEP-PMMA.
    2. Shabana Mitra, 2016. "Synergies Among Monetary, Multidimensional and Subjective Poverty: Evidence from Nepal," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(1), pages 103-125, January.
    3. Jaya Krishnakumar & Florian Chávez-Juárez, 2016. "Estimating Capabilities with Structural Equation Models: How Well are We Doing in a ‘Real’ World?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(2), pages 717-737, November.
    4. Jaya Krishnakumar & A. Nagar, 2008. "On Exact Statistical Properties of Multidimensional Indices Based on Principal Components, Factor Analysis, MIMIC and Structural Equation Models," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 86(3), pages 481-496, May.
    5. Mohammad Abu-Zaineh & Maame Esi Woode, 2018. "Investigating the Dimensions of Youth Wellbeing: An Exploratory Structural Equation Modelling Approach Applied to Palestine," Post-Print hal-01719872, HAL.
    6. Kanwal Zahra & Tasneem Zafar, 2015. "Marginality as a Root Cause of Urban Poverty: A Case Study of Punjab," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 629-650.
    7. Yele Batana, 2008. "Multidimensional Measurement of Poverty in Sub-Saharan Africa," OPHI Working Papers ophiwp013, Queen Elizabeth House, University of Oxford.
    8. Udaya Wagle, 2009. "Capability Deprivation and Income Poverty in the United States, 1994 and 2004: Measurement Outcomes and Demographic Profiles," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 94(3), pages 509-533, December.
    9. Robyn von Maltzahn & Kevin Durrheim, 2008. "Is poverty multidimensional? A comparison of income and asset based measures in five Southern African countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 86(1), pages 149-162, March.
    10. Udaya Wagle, 2014. "The Counting-Based Measurement of Multidimensional Poverty: The Focus on Economic Resources, Inner Capabilities, and Relational Resources in the United States," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 115(1), pages 223-240, January.
    11. 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.
    12. Udaya Wagle, 2007. "Poverty in Kathmandu: What do subjective and objective economic welfare concepts suggest?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(1), pages 73-95, April.
    13. Lamichhane, Kamal & Ballabha, Damaru & Kartika, Diana, 2014. "Analysis of Poverty between People with and without Disabilities in Nepal," Working Papers 77, JICA Research Institute.
    14. repec:spr:chinre:v:11:y:2018:i:1:d:10.1007_s12187-016-9420-0 is not listed on IDEAS
    15. Ling Zhou & Huazhen Lin & Yi-Chen Lin, 2016. "Education, Intelligence, and Well-Being: Evidence from a Semiparametric Latent Variable Transformation Model for Multiple Outcomes of Mixed Types," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(3), pages 1011-1033, February.
    16. Julia Johannsen & Manfred Zeller & Stephan Klasen, 2007. "The capability dilemma in operational poverty assessment," Ibero America Institute for Econ. Research (IAI) Discussion Papers 159, Ibero-America Institute for Economic Research.
    17. repec:gam:jsusta:v:10:y:2018:i:6:p:2055-:d:152987 is not listed on IDEAS
    18. Ajakaiye, Olu & Jerome, Afeikhena T. & Olaniyan, Olanrewaju & Mahrt, Kristi & Alaba, Olufunke A., 2014. "Multidimensional poverty in Nigeria: First order dominance approach," WIDER Working Paper Series 143, World Institute for Development Economic Research (UNU-WIDER).

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