Explaining Multidimensional Poverty: A Household-Level Analysis

2018 ◽  
Vol 17 (3) ◽  
pp. 183-210 ◽  
Author(s):  
Carlos C. Bautista

A multidimensional poverty index is constructed for the Philippines using the Alkire-Foster methodology and data from a 2011 annual poverty indicators survey. This is disaggregated into urban and rural population groups, as well as by dimension and administrative region. At the province level, the study finds a positive relation between poverty incidence and intensity, but the highest intensity levels are experienced in areas where incidence is not that high relative to other areas. Provinces with high incomes generally have low poverty indices and the relationship appears to be nonlinear. An examination of household poverty using mixed logit analysis shows that poverty risk rises with household size. A substantial reduction of the risk is observed for households with heads who were able to matriculate high school. The household head's health status has a negative impact on the household's risk of being poor. These are contrasted with the results using the income poverty definition. Policy implications are drawn from the calculations and the econometric results.

2018 ◽  
Vol 18 (17) ◽  
pp. 91-104
Author(s):  
Keshab Prasad Adhikari

The aged long conventional unidimensional definition and measurement of poverty ‘lack of money’ in most countries is being replaced by the multidimensional approach and methodology. The launching of MPI report in 2018 implied Nepal also officially to adopt this in national poverty measurement policy strategy. This paper is aimed at to sensitize methodological aspects of MPI among academic and policy implications in Nepalese context. Debate on multidimensional poverty research in addressing rampant poverty dates back the advent of basic-needs and the physical quality of life index approaches of 1970s but both failed to establish a valid and reliable deprivation score to divide population as poor and non-poor like in income line approach. Human development index gave basis to rank countries into four groups as very high, high, medium and low level of human development. However it could not offer a precise deprivation score to divide population into-two as in absolute deprivation and non-deprivation as well as population in borderline of deprivation as alternatives of income poverty. It is the Alkire and Foster’s (2007 and 2010) MPI methodology/approach of OPHI and successively adopted in human development reports of UNDP, aggressively being adopted as alternatives of conventional income line methods of poverty measurement and targeting policies. Three dimensional and ten indicators equally weighted MPI based on the same conceptual groundings of ‘capability, wellbeing and functions’ of Sen are taken as reliable alternative to the conventional income approach of poverty measurement. With the official release of national MPI study report in January 2018, Nepal adopted MPI in its policy option in targeting population living in multiple web of poverty and their targeting. The study found poverty and deprivation studied from MPI perspective is vital to attain multiple goals of 2030 SDGs.


2018 ◽  
Vol 19 (1) ◽  
pp. 108-123 ◽  
Author(s):  
Shadlee Rahman

This article examines the nature of spatial dimensions of poverty in Bangladesh by undertaking an in-depth investigation of inter-temporal divergence and convergence in poverty levels. Based on the estimations of Alkire–Foster Multidimensional Poverty Index (A–F MPI) for selected years, the article compares trends in broader dimensions of spatial poverty in Bangladesh with income poverty trends available for corresponding periods. The article scrutinizes the validity of the so-called ‘East–West divide’ in view of poverty levels in Bangladesh. The results evince a number of interesting insights. First, trends of income poverty in Bangladesh are not aligned with those of multidimensional poverty. Second, the levels of inter-temporal poverty as per MPI are relatively higher for the rural–urban divide and also at sub-national (division) levels. Third, inter-temporal trends of divergence–convergence in terms of income poverty relating to the East–West divide do not match corresponding movements in MPI. It is argued that while income poverty dimensions remain important, policymakers should pay more attention to broader issues of deprivations to address challenges of poverty in Bangladesh. Therefore, addressing causes of deprivations as captured in MPIs will help achieve balanced spatial development, accelerated poverty reduction and lower income inequality in Bangladesh. JEL: R11, R12, I32, C22


2017 ◽  
Vol 8 (3) ◽  
pp. 46-53
Author(s):  
Faiz Muhammad ◽  
Amjad Ali

This study investigates the impact of socioeconomic variables on household poverty in Chitral valley, the largest district of Khyber Pakhtunkhwa Province of Pakistan. The household poverty index has been constructed while calculating multidimensional poverty index for each household. For this purpose, a representative sample of 252 households has been surveyed while distributing a questionnaire to each household. The data have been collected through stratified sampling technique and the collected data then analyzed while applying descriptive statistical tools and regression techniques. The regression analysis was done while taking explanatory variables as income of the household, the gender of household head, lives stock population of household, age of household head and dependence ratio of the household. Results of the regression analysis show that lives stock population and income of household have significant negative impact on household poverty. The results further reveal that dependency ratio has also significant positive impact on household poverty. Different diagnostics tests have also been applied in order to test the assumptions of the linear regression model and the results of all the diagnostics show the absence of econometric problems in the estimated model. 


2021 ◽  
Vol 8 ◽  
Author(s):  
Sara Maruyama ◽  
Juyun Lim ◽  
Nadia A. Streletskaya

Consumer demand for clean label has risen in recent years. However, clean label foods with simple and minimalistic ingredient lists are often expensive to produce and/or may possess less desirable sensory qualities. Accordingly, understanding consumer preferences regarding the clean label trend would be of great interest to the food industry. Here we investigate how ingredient lists and associated sensory quality descriptions may influence consumer preferences using a hypothetical choice experiment. In particular, we test the impacts of four common stabilizers (carrageenan, corn starch, milk protein concentrate, and pectin) and textural characteristics on preferences and willingness to pay for plain yogurt. A total of 250 yogurt consumers participated in the study. The results of a mixed logit analysis suggest that clean labeling significantly increases the likelihood of consumer choice, while poor texture reduces consumer choice. More importantly, the negative impact of poor texture seems to be less significant for clean label yogurts compared to that for yogurts with longer ingredient lists. Among all stabilizers, corn starch in particular has a significant negative impact on consumer choice. The estimated average consumer willingness to pay for clean labels is between $2.54 and $3.53 for 32 oz yogurt formulations. Furthermore, clean labels minimize the negative impact of textural defects with consumers willing to pay an estimated premium of $1.61 for the family size yogurt with a simple ingredient list. Results of latent class modeling reveal two classes of consumers with similar patterns of demand who prefer clean labels and, on average, would rather purchase a yogurt with a textural defect than opt out of purchasing a yogurt entirely. Implications for the food industry are discussed.


Author(s):  
Amare Mabrie Yemata

Household level vulnerability analyses are becoming main issue in economics literature. Yet very few empirical works have been done to examine the extent of Eastern Ethiopia urban (Dira Dawa, Harar and Jigjiga towns) households’ vulnerability to multidimensional poverty. This paper tried to fill the gap by using a survey that was conducted to collect information on household’s characteristics, socioeconomic status, shocks experience and responses to shocks during the year 2016. Unlike conventional studies of household vulnerability, this study calculates household’s probability of experiencing a broad and non-monetary characterization of poverty: the multidimensional poverty index using Structural Equation and Tobit model. The Structural Equation Model result revealed that, the health and education dimensions of multidimensional poverty significantly contributed a lot to households’ vulnerability to multidimensional poverty. Based on the Tobit model result households’ vulnerability to multidimensional poverty would be reduced if the household is wealthier, better educated healthier, employed and has the practice of reducing the size of meals at the time of shock. Contrary to this, if the household has large family size, prone to health problem, and has not developed the culture of reducing the number of meals per day, there is high risk of vulnerability to multidimensional poverty. Hence, the study recommended that there is a dire need for policies and programs that can improve wealth and education statuses of household members, create employment opportunity, promote family planning, improved health situation and accessibility of food for the vulnerable households.


Author(s):  
Khaufelo Raymond Lekobane

AbstractThe Leave No One Behind principle is at the core of the 2030 Agenda for sustainable development and acknowledges that poverty is multidimensional and should be examined at individual level. Notwithstanding this, most empirical studies use the household as the unit of analysis for multidimensional poverty measurement. However, estimation of poverty levels at household-level underestimates poverty levels of the society and does not capture intra-household inequalities. The objective of this study is two-fold: (1) developing a country-specific individual-level multidimensional poverty measure; and (2) providing estimates of multidimensional poverty for Botswana. This study contributes to the limited literature on individual-level multidimensional poverty measurement. Empirically, this study offers the first attempt to estimate a nationally relevant and context-specific multidimensional poverty index for Botswana using the individual as a unit of analysis. The results reveal that an estimated 46.2% of individuals are considered multidimensionally poor based on individual-level analysis. This figure is higher than the household-level estimate of 36.5%, which indicates that using the household as a unit of analysis leads to underestimating poverty levels in the society. The results show that on average, the multidimensionally poor are deprived in 47.4% of all indicators under consideration. This finding indicates that multidimensional poverty intensity is also a considerable concern in Botswana. These findings warrant policy interventions.


SAGE Open ◽  
2019 ◽  
Vol 9 (1) ◽  
pp. 215824401983745 ◽  
Author(s):  
Srinivas Goli ◽  
Nagendra Kumar Maurya ◽  
Moradhvaj ◽  
Prem Bhandari

This article examines the extent of regional inequality in multidimensional poverty in Nepal using the nationally representative Nepal Demographic Health Survey (2011) data. The authors present a more robust method of multidimensional poverty index (MPI), particularly in terms of the procedure of estimation and aggregation of the indicators as compared with previous studies. The findings suggest that despite the relatively better economic progress and a considerable reduction in education and health poverty, there is a wide inequality across the regions. Far less has been achieved in the case of reducing the standard of living poverty, that is, wealth poverty and inequalities across the regions. The article finds that global MPI tends to inflate poverty estimates in the case of Nepal. It also suggests that development policies and poverty reduction programs in Nepal must aim to reduce multidimensional poverty, of which deprivation in education, health and basic amenities must be an integral component, along with their efforts to improve economic growth and reduce income poverty.


2021 ◽  
pp. 156-174
Author(s):  
Vusi Gumede

The chapter examines poverty in the post-apartheid dispensation (in South Africa), taking into account the various studies that have been undertaken regarding poverty since 1994. Because the South African statistical agency—Statistics South Africa—has not collected poverty data since 2015, the chapter uses the National Income Dynamics Study (NIDS) dataset to estimate poverty for the 2008–17 period while analysing existing data and estimates prior to 2017. An attempt to cover the period after 2017 is done using the NIDS-Coronavirus Rapid Mobile Survey (NIDS-CRAM) which is the mobile survey that was undertaken using the NIDS respondents to gauge the impact of the coronavirus pandemic. The analysis focuses on income poverty although other measures such as the multidimensional poverty index are also estimated and analysed. Relative to expenditure, the income approach in measuring poverty provides descriptive information on household welfare and it is useful for policy analysis and programme evaluation as the literature explains. The chapter concludes that although it appears that income poverty has been declining, it remains very high and it is higher for women, for those living in rural areas, and for the African/black population group. In addition, the severity and intensity of poverty has not changed much since 1994.


Author(s):  
Khaled TAFRAN ◽  
Makmor TUMIN ◽  
Ahmad Farid OSMAN

Background: We examined whether multidimensional poverty index (MPI) explained variations in life expectancy (LE) better than income poverty; and assessed the relative importance of MPI indicators in influencing LE. Methods: Cross-sectional data from 62 developing countries were used to run several multivariate linear regressions. R2 was used to compare the powers of MPI with income-poverties (income poverty gaps [IPG] at 1.9 and 3.1 USD) in explaining LE. Results: Adjusting for controls, both MPI (β =-0.245, P<0.001) and IPG at 3.1 USD (β=-0.135, P=0.044) significantly correlates with LE, but not IPG at 1.9 USD (β=-0.147, P=0.135). MPI explains 12.1% of the variation in LE compared to only 3.2% explained by IPG at 3.1 USD. The effect of MPI on LE is higher on female (β=- 0.210, P<0.001) than male (β=-0.177, P<0.001). The relative influence of the deprivation indictors on LE ranks as follows (most to least): Asset ownership, drinking water, cooking fuel, flooring, child school attendance, years of schooling, nutrition, mortality, improved sanitation, and electricity. Conclusion: Interventions to reduce poverty and improve LE should be guided by MPI, not income poverty indices. Such policies should be female-oriented and prioritized based on the relative influence of the various poverty deprivation indicators on LE.


Author(s):  
Surya Narayan Biswal ◽  
◽  
S. K. Mishra ◽  
M. K. Sarangi ◽  
◽  
...  

UNDP’s 2030 agenda of Sustainable Development Goals (SDGs) emphasized gender equality in augmenting human capital and alleviating poverty. For eradication of extreme poverty and building resilience for persons who are vulnerable to poverty, SDGs calls for a pro-poor and gender-sensitive policy framework. In this context, a gender-based study on multi-dimensional aspects of poverty is highly significant. Extant literature reveals that females are more deprived in different dimensions of poverty such as education, health, living standard, empowerment, environment, autonomy and social relationship. The present study is conducted with the basic objective of examining feminization of poverty in rural areas of Jagatsinghapur district of Odisha. Seven socio-economic dimensions comprising sixteen indicators have been taken into consideration to construct the Multidimensional Poverty Index (MPI) using the Alkire-Foster (AF) Method at the individual level. The novelty of the study lies in analyzing MPI at the individual level for rural Odisha. Higher female deprivation is observed across social groups and all occupation categories except services. Dummy variable regression analysis also supports the major findings of the study. Complementary Cumulative Distribution Function satisfies strict first-order stochastic dominance condition and substantiates the feminisation of poverty at each level of poverty cut-off across all social groups and occupational categories except for services. The findings of the study have significant implications for developing suitable policies for gender equalization and poverty alleviation.


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