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Multidimensional poverty comparisons can be sensitive to the choice of welfare indicators, the weights assigned to the indicators, as well as the aggregate poverty measure used. This paper examines the robustness of trends in multidimensional poverty in the Philippines to these choices by presenting estimates for three alternative weighting schemes and three measures of multidimensional poverty. The weighting schemes range from uniform weights similar to those used in the global multidimensional poverty indexes produced by the United Nations Development Programme, to weights based on inverse incidence of different deprivations and those derived from the estimated relationship of deprivations to a survey-based measure of subjective welfare. The multidimensional poverty measures similarly range from the "dual cut-off" indexes analogous to the United Nations Development Programme's global Multidimensional Poverty Index, to "union-based" indexes that count all deprivations, to indexes that are also responsive to the distribution of deprivations. Using data for 2004-13, the paper finds evidence of a significant decline in multidimensional poverty that is robust to these alternatives, although the magnitude of the decline in, and especially the dimensional contributions to, aggregate multidimensional poverty are quite sensitive to the alternatives considered.
Identification And Aggregation --- Multidimensional Poverty --- Weighting
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This note describes a new measure of multidimensional poverty developed for Armenia. In 2013, the National Statistical Service of the Republic of Armenia and the World Bank began work on a national measure of multidimensional poverty to supplement the consumption poverty indicator. This measure, which was identified through consultations with many stakeholders in Armenia, reflects deprivations specific to Armenia in the areas of education, health, labor, housing conditions, and basic needs. The approach offers insights into the complexity, depth, and persistence of poverty in the country; tailoring it specifically to the country context enhances its relevance for policy. This note uses the new measure to describe national trends and regional patterns.
Basic Needs --- Consumption --- Development Economics --- Multidimensional Poverty --- Poverty --- Poverty Measurement
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This paper presents axiomatic arguments to make the case for distribution-sensitive multidimensional poverty measures. The commonly-used counting measures violate the strong transfer axiom which requires regressive transfers to be unambiguously poverty-increasing and they are also invariant to changes in the distribution of a given set of deprivations amongst the poor. The paper appeals to strong transfer as well as an additional cross-dimensional convexity property to offer axiomatic justification for distribution-sensitive multidimensional poverty measures. Given the nonlinear structure of these measures, it is al also shown how the problem of an exact dimensional decomposition can be solved using Shapley decomposition methods to assess dimensional contributions to poverty. An empirical illustration for India highlights distinctive features of the distribution-sensitive measures.
Crossdimensional Convexity --- Multidimensional Poverty --- Poverty Assessment --- Poverty Measurement --- Poverty Reduction --- Shapley Decomposition --- Transfer Axiom
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This paper examines multidimensional poverty among forcibly displaced populations, using a gendered lens. Although past studies have explored poverty in forcibly displaced contexts, and others have looked at the relationship between multidimensional poverty and gender, none has brought together these three issues-multidimensional poverty, forcibly displaced persons, and gender. A tailored measure of multidimensional poverty is developed and applied for refugees and internally displaced populations in five Sub-Saharan African settings substantially affected by forced displacement-Ethiopia, Nigeria, Somalia, South Sudan, and Sudan. The gendered analysis builds on prior analysis of the Multidimensional Poverty Index (MPI) by examining individual-level deprivations of women and men in forcibly displaced households and host communities, as well as synthesizing intrahousehold dynamics of multidimensional poverty in forcibly displaced communities. The results provide insights into the educational constraints of boys and girls living in forcibly displaced households, the labor market inequalities experienced by men and women in these communities, and their differential access to legal documentation and employment as part and parcel of the forced displacement experience.
Forced Displacement --- Gender --- Gender and Poverty --- Gender Norms --- Inequality --- Internally Displaced Persons --- Multidimensional Poverty --- Poverty Diagnostics --- Poverty Lines --- Poverty Reduction
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The challenges faced in calibrating poverty and welfare measures to objective data have long been recognized. Until recently, most economists have resisted a seemingly obvious solution, namely to ask people themselves: "Do you feel poor?" The paper studies the case for and against this approach. It is argued that, while one would not want to use self-assessments as welfare metrics in their own right, there is scope for using such data to help calibrate multidimensional measures. Indeed, the idea of a "social subjective poverty line" (below which people tend to think they are poor, but above which they do not) is arguably the most conceptually appealing way of defining poverty. However, the paper points to a number of concerns that have received insufficient attention, including the choice of covariates, survey design issues, measurement errors, frame-of-reference effects, and latent heterogeneity in personality traits and personal tradeoffs. Directions for future research are identified.
Crime and Society --- Economic Theory & Research --- Latent heterogeneity --- Multidimensional poverty --- Poverty Reduction --- Rural Poverty Reduction --- Scales --- Services & Transfers to Poor --- Social Development --- Subjective welfare --- Vignettes --- Well-being
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Widespread agreement that poverty is a multifaceted phenomenon, encompassing deprivations along multiple dimensions, clashes with often vociferous disagreement about how best to measure these deprivations. Drawing on the recent literature, this short note proposes three methodological alternatives to the false dichotomy between scalar indices of multidimensional poverty, on the one hand, and a "dashboard" approach that looks only at marginal distributions, on the other. These alternatives include simple Venn diagrams of the overlap of deprivations across dimensions, multivariate stochastic dominance analysis, and the analysis of copula functions, which capture the extent of interdependency across dimensions. Examples from the literature on both developing and developed countries are provided.
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This paper examines living conditions-mainly access to infrastructure and basic services-in Kinshasa, by focusing on how they vary within the city and how they are related to household characteristics. First, drawing on a household survey conducted in the capital province in 2018, the paper shows that many Kinshasa residents live with substandard housing and inadequate levels of access to infrastructure and basic services. Second, the level and quality of access to basic services are highly correlated with residents' consumption and education levels, as well as their neighborhood characteristics. Third, despite the presence of negative externalities from the high population density, poor households benefit from living in dense neighborhoods by gaining a minimum level of access. The paper argues that it is imperative to increase the supply of affordable housing to lessen the inequality of access to services in Kinshasa.
Communities and Human Settlements --- Housing --- Inequality --- Informal Settlements --- Multidimensional Poverty --- Poverty Lines --- Poverty Reduction --- Spatial Inequality --- Urban Development --- Urban Housing --- Urban Housing and Land Settlements --- Urban Poverty
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Widespread agreement that poverty is a multifaceted phenomenon, encompassing deprivations along multiple dimensions, clashes with often vociferous disagreement about how best to measure these deprivations. Drawing on the recent literature, this short note proposes three methodological alternatives to the false dichotomy between scalar indices of multidimensional poverty, on the one hand, and a "dashboard" approach that looks only at marginal distributions, on the other. These alternatives include simple Venn diagrams of the overlap of deprivations across dimensions, multivariate stochastic dominance analysis, and the analysis of copula functions, which capture the extent of interdependency across dimensions. Examples from the literature on both developing and developed countries are provided.
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The challenges faced in calibrating poverty and welfare measures to objective data have long been recognized. Until recently, most economists have resisted a seemingly obvious solution, namely to ask people themselves: "Do you feel poor?" The paper studies the case for and against this approach. It is argued that, while one would not want to use self-assessments as welfare metrics in their own right, there is scope for using such data to help calibrate multidimensional measures. Indeed, the idea of a "social subjective poverty line" (below which people tend to think they are poor, but above which they do not) is arguably the most conceptually appealing way of defining poverty. However, the paper points to a number of concerns that have received insufficient attention, including the choice of covariates, survey design issues, measurement errors, frame-of-reference effects, and latent heterogeneity in personality traits and personal tradeoffs. Directions for future research are identified.
Crime and Society --- Economic Theory & Research --- Latent heterogeneity --- Multidimensional poverty --- Poverty Reduction --- Rural Poverty Reduction --- Scales --- Services & Transfers to Poor --- Social Development --- Subjective welfare --- Vignettes --- Well-being
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Despite the many simultaneous deprivations faced by forcibly displaced communities, such as food insecurity, inadequate housing, or lack of access to education, there is little research on the level and composition of multidimensional poverty among them, and how it might differ from that of host communities. Relying on household survey data from selected areas of Ethiopia, Nigeria, Somalia, South Sudan, and Sudan, this paper proposes a Multidimensional Poverty Index (MPI) that captures the overlapping deprivations experienced by poor individuals in contexts of displacement. Using the MPI, the paper presents multi-country descriptive analysis to explore the relationships between multidimensional poverty, displacement status, and gender of the household head. The results reveal significant differences across displaced and host communities in all countries except Nigeria. In Ethiopia, South Sudan, and Sudan, female-headed households have higher MPIs, while in Somalia, those living in male-headed households are more likely to be identified as multidimensionally poor. Lastly, the paper examines mismatches and overlaps in the identification of the poor by the MPI and the USD 1.90/day poverty line, confirming the need for complementary measures when assessing deprivations among people in contexts of displacement.
Economics and Gender --- Female-Headed Household --- Forced Displacement --- Gender --- Gender and Development --- Gender and Economic Policy --- Gender and Economics --- Gender and Poverty --- Gender Inequality --- Inequality --- Internal Displacement --- Internally Displaced Persons --- Macroeconomics and Economic Growth --- Monetary Poverty --- Multidimensional Poverty --- Multidimensional Poverty Index --- Poverty Assessment --- Poverty Diagnostics --- Poverty Impact Evaluation --- Poverty Lines --- Poverty Monitoring and Analysis --- Poverty Reduction --- Refugee
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