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Multidimensional Poverty and its Discontents

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  • Sabina Alkire

Abstract

More data on non-income dimensions of poverty are available than at any previous time in history. Alongside this, multidimensional measurement methodologies have advanced considerably in the past fifteen years. These advances together have created new possibilities to measure multidimensional poverty at the local, national and international level. Yet the fact that overall measures can be constructed does not mean that they will necessarily add value. This paper focuses on the question of when, how and why certain multidimensional poverty measures add value, sketches the limits of the contribution, and introduces a set of standing questions. The key value-added of a rigorously implemented multidimensional poverty index is that it conveys additional information not captured in single-dimensional measures (or in a dashboard) on the joint distribution of disadvantage and the composition of poverty. It also provides a consistent account of the overall change in multidimensional poverty across time and space. The paper discusses the joint distribution approach to multidimensional poverty measurement and presents one class of poverty measures within this approach. It then introduces one recently implemented measure within this family: the 104-country Multidimensional Poverty Index 2010 and uses concrete examples to explain its construction further. For example, without weights one can only identify the multidimensionally poor by the union or the intersection approaches; by these approaches the 2010 MPI would have identified an average of 58% or 0% of people across the 104 countries as poor. It also shows how to “unfold” the MPI by sub-group or dimension, and also by intensity - because similar “intensities” of poverty can conceal different distributions of intensity among the poor. Pointing out the added value of multidimensional poverty indexes is not to suggest that single-dimensional measures be abandoned but rather supplemented. Investing further in multidimensional measures has the potential to generate significant advances in understanding and useful policy tools.

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  • Sabina Alkire, 2011. "Multidimensional Poverty and its Discontents," OPHI Working Papers ophiwp046, Queen Elizabeth House, University of Oxford.
  • Handle: RePEc:qeh:ophiwp:ophiwp046
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    File URL: http://workingpapers.qeh.ox.ac.uk/pdf/ophiwp/OPHIWP046.pdf
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    Cited by:

    1. 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.
    2. Andy Sumner, 2012. "Where Will the World’s Poor Live? An Update on Global Poverty and the New Bottom Billion," Working Papers 305, Center for Global Development.
    3. repec:ecr:col070:41143 is not listed on IDEAS
    4. Espinoza-Delgado, José & López-Laborda, Julio, 2017. "Nicaragua: evolución de la pobreza multidimensional, 2001-2009," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    5. Franco-Correa, A, 2014. "An individual-centered approach to multidimensional poverty: The cases of Chile, Colombia, Ecuador and Peru," MERIT Working Papers 068, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Kshitij Chaudhary, 2015. "The effect of political decentralisation and affirmative action on Multidimensional Poverty Index: evidence from Indian States," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 17(1), pages 27-49, April.
    7. Gaurav Datt, 2017. "Distribution-sensitive multidimensional poverty measures with an application to India," Monash Economics Working Papers 06-17, Monash University, Department of Economics.
    8. Binelli, Chiara & Loveless, Matthew & Whitefield, Stephen, 2015. "What Is Social Inequality and Why Does it Matter? Evidence from Central and Eastern Europe," World Development, Elsevier, vol. 70(C), pages 239-248.
    9. Espinoza-Delgado, José Luis & López-Laborda, Julio, 2015. "Evolución de la Pobreza Multidimensional en Nicaragua, 2001-2009
      [Evolution of Multidimensional Poverty Measurement in Nicaragua, 2001-2009]
      ," MPRA Paper 61734, University Library of Munich, Germany.
    10. Sumner, Andy, 2013. "Global Poverty, Aid, and Middle-Income Countries: Are the Country Classifications Moribund or is Global Poverty in the Process of 'Nationalizing'?," WIDER Working Paper Series 062, World Institute for Development Economic Research (UNU-WIDER).

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