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Multidimensional Poverty Analysis: Looking for a Middle Ground

Author

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  • Ferreira, Francisco H.G.

    () (World Bank)

  • Lugo, Maria Ana

    () (World Bank)

Abstract

Widespread agreement that poverty is a multifaceted phenomenon, encompassing deprivations along multiple dimensions, clashes with often vociferous disagreement about how best to measure these deprivations. Drawing on the recent literature, this short note proposes three methodological alternatives to the false dichotomy between scalar indices of multidimensional poverty, on the one hand, and a “dashboard” approach that looks only at marginal distributions, on the other. These alternatives include simple Venn diagrams of the overlap of deprivations across dimensions, multivariate stochastic dominance analysis, and the analysis of copula functions, which capture the extent of interdependency across dimensions. Examples from the literature on both developing and developed countries are provided.

Suggested Citation

  • Ferreira, Francisco H.G. & Lugo, Maria Ana, 2012. "Multidimensional Poverty Analysis: Looking for a Middle Ground," IZA Policy Papers 45, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izapps:pp45
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    References listed on IDEAS

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    1. Jean-Yves Duclos & David E. Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Poverty Comparisons," Economic Journal, Royal Economic Society, vol. 116(514), pages 943-968, October.
    2. Francisco Ferreira, 2011. "Poverty is multidimensional. But what are we going to do about it?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(3), pages 493-495, September.
    3. Maasoumi, Esfandiar & Lugo, Maria, 2006. "The Information Basis of Multivariate Poverty Assessments," Departmental Working Papers 0603, Southern Methodist University, Department of Economics.
    4. Chakravarty, Satya R. & Deutsch, Joseph & Silber, Jacques, 2008. "On the Watts Multidimensional Poverty Index and its Decomposition," World Development, Elsevier, vol. 36(6), pages 1067-1077, June.
    5. François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(1), pages 25-49, April.
    6. Koen Decancq & María Ana Lugo, 2013. "Weights in Multidimensional Indices of Wellbeing: An Overview," Econometric Reviews, Taylor & Francis Journals, vol. 32(1), pages 7-34, January.
    7. Atkinson, Anthony B. & Lugo, Maria Ana, 2010. "Growth, poverty and distribution in Tanzania," LSE Research Online Documents on Economics 36376, London School of Economics and Political Science, LSE Library.
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    Cited by:

    1. José Roche, 2013. "Monitoring Progress in Child Poverty Reduction: Methodological Insights and Illustration to the Case Study of Bangladesh," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 112(2), pages 363-390, June.
    2. Koen Decancq & Marc Fleurbaey & Francois Maniquet, 2014. "Multidimensional poverty measurement with individual preferences," Working Papers 058-2014, Princeton University, Department of Economics, Econometric Research Program..
    3. Rolf Aaberge & Andrea Brandolini, 2014. "Multidimensional poverty and inequality," Discussion Papers 792, Statistics Norway, Research Department.
    4. Koen Decancq, 2017. "Measuring Multidimensional Inequality in the OECD Member Countries with a Distribution-Sensitive Better Life Index," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(3), pages 1057-1086, April.
    5. repec:emx:esteco:v:32:y:2017:i:2:p:171-212 is not listed on IDEAS
    6. Koen Decancq & Erik Schokkaert, 2016. "Beyond GDP: Using Equivalent Incomes to Measure Well-Being in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 126(1), pages 21-55, March.
    7. Maria Emma Santos, 2014. "Measuring Multidimensional Poverty in Latin America: Previous Experience and the Way Forward," OPHI Working Papers ophiwp066, Queen Elizabeth House, University of Oxford.
    8. Chris De Neubourg & Jingqing Chai & Marlous de Milliano & Ilze Plavgo, 2013. "Step-by-Step Guidelines to the Multiple Overlapping Deprivation Analysis (MODA)," Papers inwopa695, Innocenti Working Papers.
    9. David Madden, 2015. "Health and Wealth on the Roller-Coaster: Ireland, 2003–2011," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 121(2), pages 387-412, April.
    10. Syed Abidur Rahman & Azlan Amran & Noor Hazlina Ahmad & Seyedeh Khadijeh Taghizadeh, 2016. "Enhancing the Wellbeing of Base of the Pyramid Entrepreneurs through Business Success: The Role of Private Organizations," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(1), pages 195-216, May.
    11. Espinoza-Delgado, Jose & Klasen, Stephan, 2017. "Gender and Multidimensional Poverty in Nicaragua, An Individual-based Approach," MPRA Paper 81907, University Library of Munich, Germany.
    12. Kathleen Beegle & Luc Christiaensen & Andrew Dabalen & Isis Gaddis, 2016. "Poverty in a Rising Africa," World Bank Publications, The World Bank, number 22575.
    13. Augusto de la Torre & Eduardo Levy Yeyati & Guillermo Beylis & Tatiana Didier & Carlos Rodriguez Castelan & Sergio Schmukler, "undated". "Inequality in a Lower Growth Latin America : LAC Semiannual Report, October 2014," World Bank Other Operational Studies 20413, The World Bank.
    14. Sabina Alkire & Suman Seth, 2013. "Selecting a Targeting Method to Identify BPL Households in India," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 112(2), pages 417-446, June.
    15. Ambel,Alemayehu A. & Mehta,Parendi Arafin & Yigezu,Biratu, 2015. "Multidimensional poverty in Ethiopia : changes in overlapping deprivations," Policy Research Working Paper Series 7417, The World Bank.
    16. Yekaterina Chzhen & Lucia Ferrone, 2017. "Multidimensional Child Deprivation and Poverty Measurement: Case Study of Bosnia and Herzegovina," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(3), pages 999-1014, April.
    17. Espinoza-Delgado, José & López-Laborda, Julio, 2016. "Las tres Is de la pobreza multidimensional en Nicaragua y el diferencial de género en los primeros quince años del siglo XXI, a partir de un enfoque centrado en la persona
      [The three I’s of multidi
      ," MPRA Paper 74997, University Library of Munich, Germany.
    18. Sandhu, Harpinder & Sandhu, Sukhbir, 2014. "Linking ecosystem services with the constituents of human well-being for poverty alleviation in eastern Himalayas," Ecological Economics, Elsevier, vol. 107(C), pages 65-75.

    More about this item

    Keywords

    multidimensional poverty; dependency structure; copulas;

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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