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Multidimensional Poverty : Why Not Make Up the Missing Joint Distribution Data ?

Author

Listed:
  • Decerf, Benoit
  • Ferrando, Mery
  • Menyhert, Balint

Abstract

Poverty is inherently multidimensional, encompassing both monetary and non-monetary dimensions. However, these outcomes are often collected in separate surveys, leaving the joint distribution partially unobserved. To improve social poverty comparisons, this paper proposes a new, simple method to address this data constraint: assume a fixed value for the missing part of the joint distribution. This approach allows the integration of outcomes collected from different surveys, unlike the mainstream method currently in use. Drawing on household surveys from six developing countries where both dimensions are observed, the paper shows that the method systematically outperforms traditional single-survey measures and “mash-up” measures. Monte Carlo simulations further confirm the robustness of the results across a wide range of data-generating scenarios. The findings highlight the value of the proposed method for monitoring multidimensional poverty and suggest that it may also benefit other social indicators facing similar data limitations.

Suggested Citation

  • Decerf, Benoit & Ferrando, Mery & Menyhert, Balint, 2026. "Multidimensional Poverty : Why Not Make Up the Missing Joint Distribution Data ?," Policy Research Working Paper Series 11348, The World Bank.
    • Handle: RePEc:wbk:wbrwps:11348
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    References listed on IDEAS

    as
    1. 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.
    2. Sudhir Anand and Amartya Sen, 1994. "Human development Index: Methodology and Measurement," Human Development Occasional Papers (1992-2007) HDOCPA-1994-02, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    3. Decerf, Benoit, 2023. "A preference-based theory unifying monetary and non-monetary poverty measurement," Journal of Public Economics, Elsevier, vol. 222(C).
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