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Measuring What Matters: Constructing the Multidimensional Deprivation Index

In: Deprivation in America

Author

Listed:
  • Roger White

    (Whittier College)

Abstract

This chapter outlines the construction of the Multidimensional Deprivation Index (MDI). Drawing on the Alkire-Foster methodology and adhering to the best practices proposed by White and Lee-Niegas, a transparent and policy-relevant approach to identifying and quantifying multidimensional deprivation in the United States is presented. The Index captures disadvantage across four equally weighted dimensions: economic security, education, health, and housing, with each dimension composed of two equally weighted indicators. The dual-cutoff strategy used to determine who is multidimensionally deprived is described, along with the aggregation methods and validation procedures that guide indicator selection, including thresholds for inclusion and checks for redundancy and overlap. To illustrate the construction process, sample calculations of the MDI and related metrics are included. Formalizing the Index and establishing its methodological foundations lays the empirical groundwork for analyzing the scope and structure of multidimensional deprivation across the U.S. population.

Suggested Citation

  • Roger White, 2026. "Measuring What Matters: Constructing the Multidimensional Deprivation Index," Global Perspectives on Wealth and Distribution, in: Deprivation in America, chapter 0, pages 21-41, Palgrave Macmillan.
    • Handle: RePEc:pal:gpochp:978-3-032-19879-2_2
    DOI: 10.1007/978-3-032-19879-2_2
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