Beyond Income: A Study of Multidimensional Poverty in Chile

Using the latest nationally representative household survey for Chile, this paper empirically assesses multidimensional poverty both at the national and subnational level. Based on the Alkire-Foster method and focusing on four dimensions of well-being –education, health, income and living standard– this study estimates the level and depth of multidimensional poverty for Chile in 2011. At national level, the results show that fewer individuals are subject to multidimensional poverty compared to the number of poor people estimated using the national income poverty line, however, large variance is found at the regional level, some regions present higher levels of multidimensional poverty than income poverty. Nonetheless, multidimensional poverty at the regional level appears to be varied, both in terms of prevalence and its nature. The multidimensional nature of this methodology provides a deeper understanding of poverty and deprivation, thus it complements income poverty estimates by informing policymakers about the joint distribution of several deprivations. This information can be used to better design and target poverty alleviation programs, as well as better allocate resources at the regional and local level.