IDEAS home Printed from https://ideas.repec.org/p/lvl/lacicr/1602.html
   My bibliography  Save this paper

Multidimensional poverty indices: A critical assessment

Author

Listed:
  • Jean-Yves Duclos
  • Luca Tiberti

Abstract

This paper reviews and assesses issues involved in the measurement of multidimensional poverty, in particular the soundness of the various “axioms” and properties often imposed on poverty indices. It argues that some of these properties (such as those relating poverty and inequality) may be sound in a unidimensional setting but not so in a multidimensional one. Second, it addresses critically some of the features of recently proposed multidimensional poverty indices, in particular the Multidimensional Poverty Index (MPI) recently put forward by the United Nations Development Program (UNDP). The MPI suffers from several unattractive features that need to be better understood (given the prominence of the index). The MPI fails in particular to meet all of three properties that one would expect multidimensional poverty indices to obey: continuity, monotonicity, and sensitivity to multiple deprivation. Robustness techniques to address some of the shortcomings of the use of such indices are briefly advocated.

Suggested Citation

  • Jean-Yves Duclos & Luca Tiberti, 2016. "Multidimensional poverty indices: A critical assessment," Cahiers de recherche 1602, CIRPEE.
  • Handle: RePEc:lvl:lacicr:1602
    as

    Download full text from publisher

    File URL: http://www.cirpee.org/fileadmin/documents/Cahiers_2016/CIRPEE16-02.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 476-487, August.
    2. Martin Ravallion, 2011. "On multidimensional indices of poverty," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(2), pages 235-248, June.
    3. Bibi, Sami & Duclos, Jean-Yves, 2007. "Equity and policy effectiveness with imperfect targeting," Journal of Development Economics, Elsevier, vol. 83(1), pages 109-140, May.
    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 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.
    6. Dominique Thon, 1979. "On Measuring Poverty," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(4), pages 429-439, December.
    7. Russell Davidson & Jean-Yves Duclos, 2000. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," Econometrica, Econometric Society, vol. 68(6), pages 1435-1464, November.
    8. Michael Grimm, 2007. "Removing the anonymity axiom in assessing pro-poor growth," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 5(2), pages 179-197, August.
    9. Cockburn, John & Duclos, Jean-Yves & Zabsonré, Agnès, 2014. "Is global social welfare increasing? A critical-level enquiry," Journal of Public Economics, Elsevier, vol. 118(C), pages 151-162.
    10. Alkire, Sabina & Santos, Maria Emma, 2014. "Measuring Acute Poverty in the Developing World: Robustness and Scope of the Multidimensional Poverty Index," World Development, Elsevier, vol. 59(C), pages 251-274.
    11. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    12. Kai-yuen Tsui, 2002. "Multidimensional poverty indices," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(1), pages 69-93.
    13. Thon, Dominique, 1979. "On Measuring Poverty," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 25(4), pages 429-439, December.
    14. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Multidimensional poverty indices: A critical assessment
      by maximorossi in NEP-LTV blog on 2016-02-11 23:27:27

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mateusz Piwowarski & Danuta Miłaszewicz & Małgorzata Łatuszyńska & Mariusz Borawski & Kesra Nermend, 2018. "Application of the Vector Measure Construction Method and Technique for Order Preference by Similarity Ideal Solution for the Analysis of the Dynamics of Changes in the Poverty Levels in the European ," Sustainability, MDPI, vol. 10(8), pages 1-24, August.
    2. Espinoza-Delgado, José & Silber, Jacques, 2018. "Multi-dimensional poverty among adults in Central America and gender differences in the three I’s of poverty: Applying inequality sensitive poverty measures with ordinal variables," MPRA Paper 88750, University Library of Munich, Germany.
    3. Rolf Aaberge & Andrea Brandolini, 2014. "Multidimensional poverty and inequality," Discussion Papers 792, Statistics Norway, Research Department.
    4. Lucia Ferrone & Yekaterina Chzhen, 2018. "How to Reach the Sustainable Development Goal 1.2? Simulating Different Strategies to Reduce Multidimensional Child Poverty in Two Middle-Income Countries," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 11(3), pages 711-728, June.
    5. Paolo Giovanni Piacquadio, 2020. "Poverty and Individual Responsibility," CESifo Working Paper Series 8169, CESifo.
    6. Alonso, José M. & Andrews, Rhys & Jorda, Vanesa, 2019. "Do neighbourhood renewal programs reduce crime rates? Evidence from England," Journal of Urban Economics, Elsevier, vol. 110(C), pages 51-69.
    7. Espinoza-Delgado, José & Klasen, Stephan, 2018. "Gender and multidimensional poverty in Nicaragua: An individual based approach," World Development, Elsevier, vol. 110(C), pages 466-491.
    8. Kelly Kilburn & Lucia Ferrone & Audrey Pettifor & Ryan Wagner & F. Xavier Gómez-Olivé & Kathy Kahn, 0. "The Impact of a Conditional Cash Transfer on Multidimensional Deprivation of Young Women: Evidence from South Africa’s HTPN 068," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 0, pages 1-31.
    9. César García‐Gómez & Ana Pérez & Mercedes Prieto‐Alaiz, 2021. "Copula‐based analysis of multivariate dependence patterns between dimensions of poverty in Europe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(1), pages 165-195, March.
    10. Kelly Kilburn & Lucia Ferrone & Audrey Pettifor & Ryan Wagner & F. Xavier Gómez-Olivé & Kathy Kahn, 2020. "The Impact of a Conditional Cash Transfer on Multidimensional Deprivation of Young Women: Evidence from South Africa’s HTPN 068," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(3), pages 865-895, October.
    11. Cho, Wonki Jo, 2022. "How to add apples and oranges: Aggregating performances of different nature," Games and Economic Behavior, Elsevier, vol. 131(C), pages 222-244.
    12. Alkire, Sabina & Apablaza, Mauricio & Chakravarty, Satya & Yalonetzky, Gaston, 2017. "Measuring chronic multidimensional poverty," Journal of Policy Modeling, Elsevier, vol. 39(6), pages 983-1006.
    13. Francisco Azpitarte & Jose Gallegos & Gaston Yalonetzky, 2020. "On the robustness of multidimensional counting poverty orderings," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 18(3), pages 339-364, September.
    14. César Garcia-Gomez & Ana Pérez & Mercedes Prieto-Alaiz, 2022. "The evolution of poverty in the EU-28: a further look based on multivariate tail dependence," Working Papers 605, ECINEQ, Society for the Study of Economic Inequality.
    15. Sabina Alkire, 2015. "The Capability Approach and Well-Being Measurement for Public Policy," OPHI Working Papers ophiwp094.pdf, Queen Elizabeth House, University of Oxford.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. James Foster & Joel Greer & Erik Thorbecke, 2010. "The Foster–Greer–Thorbecke (FGT) poverty measures: 25 years later," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(4), pages 491-524, December.
    2. Espinoza-Delgado, José & Klasen, Stephan, 2018. "Gender and multidimensional poverty in Nicaragua: An individual based approach," World Development, Elsevier, vol. 110(C), pages 466-491.
    3. Srinivas Goli & Nagendra Kumar Maurya & Moradhvaj & Prem Bhandari, 2019. "Regional Differentials in Multidimensional Poverty in Nepal: Rethinking Dimensions and Method of Computation," SAGE Open, , vol. 9(1), pages 21582440198, March.
    4. James E. Foster & Joel Greer & Erik Thorbecke, 2010. "The Foster-Greer-Thorbecke (FGT) Poverty Measures: Twenty-Five Years Later," Working Papers 2010-14, The George Washington University, Institute for International Economic Policy.
    5. Mekonnen Bersisa & Almas Heshmati, 2021. "A Distributional Analysis of Uni-and Multidimensional Poverty and Inequalities in Ethiopia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(3), pages 805-835, June.
    6. Daniel Nowak & Christoph Scheicher, 2017. "Considering the Extremely Poor: Multidimensional Poverty Measurement for Germany," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 133(1), pages 139-162, August.
    7. Sabina Alkire and James Foster, 2016. "Dimensional and Distributional Contributions to Multidimensional Poverty," OPHI Working Papers ophiwp100_2.pdf, Queen Elizabeth House, University of Oxford.
    8. Suman Seth, Sabina Alkire, 2014. "Measuring and Decomposing Inequality among the Multidimensionally Poor Using Ordinal Data: A Counting Approach," OPHI Working Papers 68, Queen Elizabeth House, University of Oxford.
    9. Sabina Alkire & Yingfeng Fang, 2019. "Dynamics of Multidimensional Poverty and Uni-dimensional Income Poverty: An Evidence of Stability Analysis from China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(1), pages 25-64, February.
    10. Núñez Velázquez, José Javier, 2009. "Estado actual y nuevas aproximaciones a la medición de la pobreza/Current Status and New Approaches to the Measurement of Poverty," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 27, pages 325-346, Agosto.
    11. Burhan Can Karahasan & Fırat Bilgel, 2021. "The Topography and Sources of Multidimensional Poverty in Turkey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 154(2), pages 413-445, April.
    12. Suman Seth and Gaston Yalonetzky, 2018. "Assessing Deprivation with Ordinal Variables: Depth Sensitivity and Poverty Aversion," OPHI Working Papers ophiwp123.pdf, Queen Elizabeth House, University of Oxford.
    13. Maria Emma Santos, 2014. "Measuring Multidimensional Poverty in Latin America: Previous Experience and the Way Forward," OPHI Working Papers 66, Queen Elizabeth House, University of Oxford.
    14. Deniz Sevinc, 2020. "How Poor is Poor? A novel look at multidimensional poverty in the UK," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(3), pages 833-859, June.
    15. Permanyer, Iñaki, 2014. "Assessing individuals' deprivation in a multidimensional framework," Journal of Development Economics, Elsevier, vol. 109(C), pages 1-16.
    16. Espinoza-Delgado, José & Silber, Jacques, 2018. "Multi-dimensional poverty among adults in Central America and gender differences in the three I’s of poverty: Applying inequality sensitive poverty measures with ordinal variables," MPRA Paper 88750, University Library of Munich, Germany.
    17. Joachim Merz & Tim Rathjen, 2011. "Intensity of Time and Income Interdependent Multidimensional Poverty: Well-Being and Minimum 2DGAP – German Evidence," FFB-Discussionpaper 92, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    18. Alkire, Sabina & Santos, Maria Emma, 2014. "Measuring Acute Poverty in the Developing World: Robustness and Scope of the Multidimensional Poverty Index," World Development, Elsevier, vol. 59(C), pages 251-274.
    19. Sabina Alkire & James Foster, 2011. "Understandings and misunderstandings of multidimensional poverty measurement," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(2), pages 289-314, June.
    20. Álvaro José Altamirano Montoya & Karla Maria Damiano Teixeira, 2017. "Multidimensional Poverty in Nicaragua: Are Female-Headed Households Better Off?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(3), pages 1037-1063, July.

    More about this item

    Keywords

    Multidimensional poverty; United Nations Development Program; Poverty; Inequality.;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • 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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lvl:lacicr:1602. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/cirpeca.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuel Paradis (email available below). General contact details of provider: https://edirc.repec.org/data/cirpeca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.