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Multidimensional Poverty Analysis: Looking for a Middle Ground

Author

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  • Ferreira, Francisco H. G.

    (London School of Economics)

  • 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 of Labor Economics (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. 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.
    4. François Bourguignon & Satya R. Chakravarty, 2019. "The Measurement of Multidimensional Poverty," Themes in Economics, in: Satya R. Chakravarty (ed.), Poverty, Social Exclusion and Stochastic Dominance, pages 83-107, Springer.
    5. 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.
    6. 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.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    multidimensional poverty; dependency structure; copulas;
    All these keywords.

    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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