Multidimensional Poverty Indices: A State Level Analysis for India

In its operational form most indicators used to arrive at the multidimensional poverty index (MPI) values are at the household level. These indicators are ‘public’ in nature for the household and it is assumed that every member of the household benefits equally from having access to such resources. The analysis in this study sheds light on the channels of non-monetary deprivation faced by women. The proposed alternate MPI employs indicators some of which exclusively capture the deprivations that women disproportionately face, viz. use of dirty cooking fuel, lack of a ventilated kitchen etc. While other indicators like roofing and flooring material, toilet facility etc. are shared resources used by all members in a household. This study explores whether such distinction makes any difference to the deprivation index value and rankings of the states in India based on NFHS-5 data (2019-21). The magnitude of MPI scores from alternate specification for India and its subregions are higher than those based on conventional specification. Across different MPI specifications, southern states including the union territories such as Lakshadweep and Puducherry consistently record lower MPI scores and consequently lower poverty rates, whereas states like Bihar have higher MPI scores and higher poverty rates. The individual specific MPI while retaining similar rankings across states, has a wider range compared to that based on sharedgoods specific MPI. The wider range of scores in the individual specific MPI suggests that it is a useful exercise to delve into the gap left by the lack of focus on interpersonal inequality by conventional MPI and its implications for state-wise development patterns. Its flexibility as an index, though not without concerns, provides ample potential for exploration of disaggregated channels of deprivations.Length: 40 pages