A comparison between unidimensional and multidimensional approaches to the measurement of poverty
The paper presents a comparison between an unidimensional approach to the measurement of poverty, obtained as a function of observable income, and a multidimensional approach, defined on the basis of economic, social, demographic and cultural indicators. The comparison is carried out by means of rank correlation analysis, which stresses how the two approaches indicate the presence of two different sets of poor households. An analysis performed on 12 European countries shows that income based evaluation provides only partial insights on poverty condition.
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- Ravallion, M., 1998. "Poverty Lines in Theory and Practice," Papers 133, World Bank - Living Standards Measurement.
- Costa, Michele, 2002. "A multidimensional approach to the measurement of poverty," IRISS Working Paper Series 2002-05, IRISS at CEPS/INSTEAD.