Measuring poverty in Malaysia: Applications of distributive-sensitive poverty indices

This paper represents an attempt to seek a better way to measure poverty in Malaysia. Many studies,including government published figures employ the head-count ratio as the index of poverty. However,this measure is a narrow measure of povety. Specifically, it ignores the distribution of income among...

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Main Author: Roslan, A.H.
Format: Article
Language:English
Published: Universiti Utara Malaysia 2004
Subjects:
Online Access:https://repo.uum.edu.my/id/eprint/312/1/A.H.Roslan.pdf
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author Roslan, A.H.
author_facet Roslan, A.H.
author_sort Roslan, A.H.
collection UUM
description This paper represents an attempt to seek a better way to measure poverty in Malaysia. Many studies,including government published figures employ the head-count ratio as the index of poverty. However,this measure is a narrow measure of povety. Specifically, it ignores the distribution of income among the poor, and hence has its limitation. Here, besides the usual simple head-count ratio (H) that was reported in most previous studies as well as in government documents, better poverty measures were employed - the poverty-income gap ratio (I), Sen (S), Clark, Hemming and Ulph Index (P*) and Foster, Greer and Thorbecke (FGT) indices of poverty. These indices introduce a welfare function that is sensitive to the distribution of income among the poor. Thus, they provide a richer picture of the nature of poverty and thus could be used for policy design with a greater level of confidence. Furthermore, the FGT index of poverty was decomposed to examine the contribution of different groups to total poverty. These indices were calculated using the Malaysian Family Life Survey (MFLS) data.
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spelling uum-3122015-06-25T07:10:27Z https://repo.uum.edu.my/id/eprint/312/ Measuring poverty in Malaysia: Applications of distributive-sensitive poverty indices Roslan, A.H. HV Social pathology. Social and public welfare This paper represents an attempt to seek a better way to measure poverty in Malaysia. Many studies,including government published figures employ the head-count ratio as the index of poverty. However,this measure is a narrow measure of povety. Specifically, it ignores the distribution of income among the poor, and hence has its limitation. Here, besides the usual simple head-count ratio (H) that was reported in most previous studies as well as in government documents, better poverty measures were employed - the poverty-income gap ratio (I), Sen (S), Clark, Hemming and Ulph Index (P*) and Foster, Greer and Thorbecke (FGT) indices of poverty. These indices introduce a welfare function that is sensitive to the distribution of income among the poor. Thus, they provide a richer picture of the nature of poverty and thus could be used for policy design with a greater level of confidence. Furthermore, the FGT index of poverty was decomposed to examine the contribution of different groups to total poverty. These indices were calculated using the Malaysian Family Life Survey (MFLS) data. Universiti Utara Malaysia 2004 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/312/1/A.H.Roslan.pdf Roslan, A.H. (2004) Measuring poverty in Malaysia: Applications of distributive-sensitive poverty indices. Malaysian Management Journal, 8 (1). pp. 25-37. ISSN 0128-6226 http://mmj.uum.edu.my/
spellingShingle HV Social pathology. Social and public welfare
Roslan, A.H.
Measuring poverty in Malaysia: Applications of distributive-sensitive poverty indices
title Measuring poverty in Malaysia: Applications of distributive-sensitive poverty indices
title_full Measuring poverty in Malaysia: Applications of distributive-sensitive poverty indices
title_fullStr Measuring poverty in Malaysia: Applications of distributive-sensitive poverty indices
title_full_unstemmed Measuring poverty in Malaysia: Applications of distributive-sensitive poverty indices
title_short Measuring poverty in Malaysia: Applications of distributive-sensitive poverty indices
title_sort measuring poverty in malaysia applications of distributive sensitive poverty indices
topic HV Social pathology. Social and public welfare
url https://repo.uum.edu.my/id/eprint/312/1/A.H.Roslan.pdf
work_keys_str_mv AT roslanah measuringpovertyinmalaysiaapplicationsofdistributivesensitivepovertyindices