Counting and multidimensional poverty measurement

This paper proposes a new methodology for multidimensional poverty measurement consisting of an identification method ρκ that extends traditional approaches, and a class of poverty measures Mα that satisfies several desirable properties including decomposability. Our identification step employs two...

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Bibliographic Details
Main Authors: Alkire, S, Foster, J
Format: Working paper
Published: Oxford Poverty & Human Development Initiative (OPHI) 2007
Description
Summary:This paper proposes a new methodology for multidimensional poverty measurement consisting of an identification method ρκ that extends traditional approaches, and a class of poverty measures Mα that satisfies several desirable properties including decomposability. Our identification step employs two forms of cutoff: one within each dimension and a second across dimensions that identifies the poor by counting their deprivations. We aggregate using Foster-Greer-Thorbecke measures adjusted for multidimensionality. Our adjusted headcount ratio is well suited for use with ordinal data. Examples from Indonesia and the US illustrate our methodology.