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Weighting deprivations using subjective well-being: An application to the Multidimensional Child Poverty Index in Vietnam

Author

Listed:
  • Dat Vu Hoang

    () (VASS-CAF)

  • Laure Pasquier-Doumer

    () (IRD, UMR DIAL, PSL, Université Paris-Dauphine)

Abstract

Although multidimensional approach to study child poverty has received growing attention, weights of different dimensions in constructing single aggregation indices have not been properly investigated. Using Young Lives data, this study attempts to fill this gap by examining a weight estimation method which takes into account the children’s perspectives. This approach consists of computing analytical weights from estimated parameters of a subjective well-being regression model, where children’s subjective well-being is explained by their achievement in dimensions included in multidimensional poverty indices. By doing so, weights reflect value judgments of children on what is a good life and are not based on a normative approach. Estimation results indicate that revealed preferences of children change overtime and across sub-groups of children. More importantly, this paper demonstrates that children do not give the same value to all dimensions, contrary to what the most common approach to calculate weights is supposing. Children then attach more importance to deprivations such as shelter, water and sanitation deprivations, which impact immediately their well-being than to deprivations which may affect negatively their well-being in the long-term, with the exception of education for some groups of children. _________________________________ L’approche multidimensionnelle pour étudier la pauvreté des enfants a reçu une attention croissante. Pourtant, la question de comment pondérer les différentes dimensions de la pauvreté dans la construction d’un indicateur synthétique de pauvreté reste encore largement sous-étudiée. A partir des données Young Lives, cette étude s’attache à combler cette lacune en examinant une méthode d'estimation des poids qui prend en compte les perceptions des enfants. Cette approche consiste à calculer le poids à partir des paramètres estimés d'un modèle expliquant le bien-être subjectif des enfants par leur réalisation dans les différentes dimensions de la pauvreté incluse dans l’indice synthétique. Les poids ainsi obtenus reflètent les valeurs des enfants sur ce qu’ils considèrent bien vivre, sans apporter de jugement normatif comme le fait l’approche donnant la même valeur à toutes les dimensions qui est actuellement suivie au Vietnam. Les résultats indiquent que les préférences révélées des enfants varient au cours du temps et entre sous-groupes d'enfants. Surtout, cette étude démontre que les enfants ne donnent pas la même valeur à toutes les dimensions. Ils attachent plus d'importance à des privations qui ont un impact immédiatement leur bien-être telles que celles relatives aux conditions d’habitat, à l’accès à l’eau, à l’assainissement qu’aux privations qui impactent leur bien-être à plus long-terme, à l'exception de l'éducation pour certains groupes d'enfants.

Suggested Citation

  • Dat Vu Hoang & Laure Pasquier-Doumer, 2016. "Weighting deprivations using subjective well-being: An application to the Multidimensional Child Poverty Index in Vietnam," Working Papers DT/2016/01, DIAL (Développement, Institutions et Mondialisation).
  • Handle: RePEc:dia:wpaper:dt201601
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    multidimensional poverty index; weights; children poverty; subjective well-being; Vietnam.;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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