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Defining and measuring extreme poverty

In: Dynamics of Inequality and Poverty

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  • Paul Makdissi
  • Quentin Wodon

Abstract

An axiomatic approach is used to propose a measure of extreme poverty which is not only multidimensional in nature, but also recognizes the fact that there are interaction effects between different deprivations, and that the length of time during which deprivations are felt may also have a negative impact on household well-being. The proposed definition of extreme poverty formalizes an approach developed by Joseph Wresinski, the founder of the International Movement ATD Fourth World.

Suggested Citation

  • Paul Makdissi & Quentin Wodon, 2006. "Defining and measuring extreme poverty," Research on Economic Inequality, in: Dynamics of Inequality and Poverty, pages 325-340, Emerald Group Publishing Limited.
    • Handle: RePEc:eme:reinzz:s1049-2585(06)13011-2
    DOI: 10.1016/S1049-2585(06)13011-2
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    1. 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.
    2. 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.
    3. Sen, Amartya, 1997. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198292975, Decembrie.
    4. Woden, Q., 2001. "Attacking Extreme Poverty. Learning from the Experience of the International Movement ATD Fourth World," Papers 502, World Bank - Technical Papers.
    5. Joseph G. Hirschberg & Esfandiar Maasoumi & Daniel J. Slottje, 2001. "Clusters of attributes and well-being in the USA," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 445-460.
    6. Foster, James E & Shorrocks, Anthony F, 1991. "Subgroup Consistent Poverty Indices," Econometrica, Econometric Society, vol. 59(3), pages 687-709, May.
    7. Kai-yuen Tsui, 2002. "Multidimensional poverty indices," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(1), pages 69-93.
    8. Indranil Dutta & Prasanta K. Pattanaik & Yongsheng Xu, 2003. "On Measuring Deprivation and the Standard of Living in a Multidimensional Framework on the Basis of Aggregate Data," Economica, London School of Economics and Political Science, vol. 70(278), pages 197-221, May.
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    More about this item

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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