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Income poverty and unsatisfied basic needs

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  • Hammill, Matthew

Abstract

Abstract This study consists of two substantive components that provide an overview of the different methodologies currently being applied to the measurement of multidimensional poverty for Mexico and Central America. In the first component a typology of different practical methodological concepts is organized according to how different methods deal with the two fundamental decisions in the measurement of poverty, identifying the poor and aggregating the groups into a single index value that is informative. The typology is able to encompass most different methods of multidimensional poverty measurement and is applied to research in multidimensional poverty carried out in the region. In the second component three different methodologies were applied to the measurement of multidimensional poverty in Mexico and the five countries of Central America using information from household surveys that provided eight different dimensions to determine poverty, one of which was household income per capita and the remaining dimensions that encompassed a broad group of unsatisfied basic needs. The findings from this analysis suggest that there is an abundant amount of additional information to be found in the analysis and measurement of multidimensional poverty and that the application and extension of such measures is feasible and would help policy makers with the design of appropriate poverty alleviation strategies. In addition an aggregate multidimensional poverty measure can provide better transparency with regard to the normative decisions that define the standards for which a society considers an individual poor or not poor. Resumen Este estudio consta de dos componentes substantivos que proporcionan un panorama de las diferentes metodologías aplicadas actualmente a la medición de la pobreza multidimensional en México y Centroamérica. En el primer componente se presenta una tipología de diferentes conceptos prácticos metodológicos de acuerdo a la forma en la cual los diferentes métodos abordan los dos determinantes fundamentales en la medición de la pobreza: identificar a los grupos en situación de pobreza; y conformar un agregado de los grupos en un sólo índice de valor informativo. La tipología permite abarcar la mayoría de los diferentes métodos de la medición de la pobreza multidimensional, y es aplicada a la investigación de la pobreza multidimensional llevada a cabo en la región. En el segundo componente se aplicaron tres metodologías diferentes de medición de la pobreza multidimensional en México y en cinco países de Centroamérica, utilizandoinformación de las encuestas de hogares, las cuales proporcionaron ocho diferentes dimensiones para determinar la pobreza, una de las cuales es el ingreso per cápita del hogar y las restantes abarcan un amplio grupo de necesidades básicas insatisfechas. Los hallazgos de este análisis sugieren que existe una gran cantidad de información adicional que se encuentra en el análisis y la medición de la pobreza multidimensional, argumentando que la aplicación y la extensión de estas mediciones es viable y podría ayudar a los tomadores de decisiones en el diseño de estrategias apropiadas de alivio de la pobreza. Adicionalmente, una medición agregada de la pobreza multidimensional puede proporcionar una mayor transparencia en relación a las decisiones normativas que definen los estándares en los cuales un individuo se considera o no en situación de pobreza.

Suggested Citation

  • Hammill, Matthew, 2009. "Income poverty and unsatisfied basic needs," Sede Subregional de la CEPAL en México (Estudios e Investigaciones) 25900, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  • Handle: RePEc:ecr:col094:25900
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    References listed on IDEAS

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