A Different Perspective on Poverty in Lao PDR: Multidimensional Poverty in Lao PDR for the Years 2002/2003 and 2007/2008

This paper presents an indicator for measuring multidimensional poverty in the Lao People’s Democratic Republic applying the Alkire–Foster methodology to the Lao Expenditure and Consumption Survey 2002/2003 and 2007/2008. We calculated a multidimensional poverty index (MPI) that includes three dimensions: education, health, and standard of living. Making use of the MPI’s decomposability, we analyse how much each of the different dimensions and its respective indicators contribute to the overall MPI. We find a marked reduction in the multidimensional poverty headcount ratio over the study period, regardless of how the indicators are weighted or how the deprivation and poverty cut-offs are set. This reduction is based on improvements regarding all indicators except cooking fuel and nutrition. We observe no significant reduction in the intensity of poverty, however; there are wide disparities between the country’s regions and between urban and rural areas. The proportion of poor people in rural areas is more than twice as high as that in urban areas. By complementing the traditional income-based poverty measure, we hope to provide useful information that can support knowledge-based decision-making for poverty alleviation.     

Multidimensionl Poverty and The Role of Social Capital in Poverty Alleviation Among Ethnic Groups in Rural Vietnam: A Multilevel Analysis

This paper empirically examines the disparities over time across six dimensions of poverty (monetary, education, health, housing, basic services, and durable assets) between ethnic minority and majority households in rural Vietnam. Using the five-wave panel data of the Vietnam Access to Resources Household Survey (VARHS) 2008–2016, we observe improvements in most non-monetary dimensions of poverty for both ethnic groups, while the monetary dimension shows the highest degrees of deprivation and the lowest rate of decrease during the studied period. Health is the only dimension in which ethnic minority households are not only better off than those of majority households during the studied period, but also report improvement. We further explore the role of social capital in ethnic minorities and non-minorities at household and community levels in multiple dimensions of poverty by employing multilevel models. Our study reports the significant effects social capital have at the community level on reducing poverty in the monetary, education, housing, and basic services dimensions for ethnic minorities, while social capital at the household level shows significant effects on monetary, basic services, and durable assets. These findings indicate that policy makers ought to consider the role of social capital when designing poverty alleviation strategies for the country.

     

A Multidimensional Approach to Measuring Quality of Employment (QoE) Deprivation in Six Central American Countries

This paper proposes a methodology for measuring Quality of Employment (QoE) deprivation from a multidimensional perspective in six Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama) using a dataset specifically designed to measure employment conditions. Building on previous work on multidimensional poverty and employment indicators, the paper uses the Alkire/Foster (AF) method to construct a synthetic indicator of the QoE at an individual level. It selects four dimensions that must be considered as essential to QoE deprivation: income, job stability, job security and employment conditions. These dimensions then subdivide into several indicators, a threshold for each indicator and dimension is established before defining an overall cut-off line that allows for the calculation of composite levels of deprivation. The results generated by this indicator show that Central American countries can be divided into three distinct and robust performance groups in terms of their QoE deprivation. Overall, approximately 60% of the deprivation levels are attributable to non-income variables, such as occupational status and job tenure. The methodology used can allow policymakers to identify and focus on the most vulnerable workers in a labour market and highlights the fact that having a formal written contract is no guarantee of good job quality, particularly in the case of women.

     

Comparing the Monetary and Living Standards Approaches to Poverty Using the Australian Experience

This paper compares the monetary and living standards approaches to poverty using Australian data for the period 2006–2017. The aim is to highlight the conceptual and empirical strengths and weaknesses of the two approaches and identify the similarities and differences that emerge when both are applied to examine what happened over the period and to a limited degree, why. The acknowledged limitations of estimating poverty rates by comparing household income with a poverty line have to a degree been addressed by developments in deprivation research that have generated estimates that are more directly related to living standards, more democratic and more credible. But this approach also has limitations, so its growing popularity need not signify the end of poverty line studies. This paper compares the two approaches, with specific attention paid to ensuring that the estimates are internally consistent over time and comparable at a point in time. Both show a consistent pattern of modest improvement in social disadvantage over the period examined, but they reveal different aspects of change. The monetary approach highlights the role of housing costs in driving changes in poverty, while the more nuanced explanation generated by estimates of deprivation provides detailed insights. The results suggest that each has a positive role to play in better understanding the nature of poverty and identifying the factors driving change over time.

     

Incidence, Depth and Severity of Children in Poverty

Recently, the first ever estimate of the number of children living poverty in developing countries was undertaken. The incidence of child poverty was estimated by establishing how many children suffer severe deprivation in at least one out of seven indicators which are internationally recognized as their rights as well as constitutive of poverty. This is a major step forward in the analysis of poverty. In this paper, we generalize these findings on the incidence of children living in poverty by exploring how to estimate the depth and severity of child poverty. Two countries can have the same proportion of children living in poverty, however, the actual plight of children could be very different depending on how many deprivations, on average, children suffer. In addition, even if they suffer from the same average number of deprivations, these deprivation could be the same for all children or be very unevenly distributed. We show how these considerations can be used to estimate the depth and severity of poverty. We use regional data to provide applied examples of this methodology. The method proposed in this paper is similar to the one used to estimate the incidence, depth and severity of income poverty. The paper also offers some possible generalizations and ways forward for future research.     

Does It Matter How We Assess Standard of Living? Evidence from Indian Slums Comparing Monetary and Multidimensional Approaches

As part of Sustainable Development Goals, the United Nations have set targets of upgrading slums and reducing poverty in all its dimensions by 2030. Policies towards improving the living conditions of slum-dwellers require proper assessment of their standard of living as well as understanding the associated characteristics. In this paper, using slum-level primary household survey data from three largest Indian cities, we, first, assess the standard of living of slum dwellers using both monetary and non-monetary approaches and then explore how various household and spatial characteristics are consistently or differently associated with both forms of assessments. We use standard monetary indicators, but to assess non-monetary standard of living, use a counting approach framework and justify the selection of specific indicators in the context of slums. Our analysis yields some interesting observations as some characteristics are differently associated with monetary and non-monetary living standards, which should affect policy designs in slums.     

Life Satisfaction of Adolescents in Hunan,China: Reliability and Validity of Chinese Brief Multidimensional Students’ Life Satisfaction Scale (BMSLSS)

The concept of poverty has gone beyond the monetary attributes to cover several dimensions directly influencing the level of individuals’ socio-economic status. Based on this methodological advancement, this study aims to approximate the deprivation of education, health and housing facilities to analyze the incidence of multidimensional poverty (MDP) at regional levels in the Sindh province of Pakistan. Findings revealed that the magnitude of MDP varies significantly across the regions due mainly to the variation in the deprivation levels of socio-economic aspects. Furthermore, the magnitude of MDP is higher in rural areas than urban areas in each region.     

Tracking Poverty Reduction in Bhutan: Income Deprivation Alongside Deprivation in Other Sources of Happiness

This paper analyses poverty reduction in Bhutan between two points in time—2003 and 2007—from a multidimensional perspective. The measures estimated include consumption expenditure as well as other indicators which are directly (when possible) or indirectly associated to valuable functionings, namely, health, education, access to electricity, safe water, improved sanitation, enough room per person in dwelling, access to roads and land ownership. Interestingly, most of these indicators have been identified as sources of happiness in the 2007 Gross National Happiness Survey. Twelve different measures are estimated with a variety of values for the different parameters involved for robustness analysis. Also, estimates are bootstrapped creating 95 % confidence intervals. We find that over the study period there was an unambiguous reduction in multidimensional poverty regardless of the indicators’ weights, deprivation cutoffs and identification criterion of the poor. This reduction was mainly led by a reduction in the proportion of the poor which was accompanied by a reduction in the intensity of poverty among those who were less intensively poor, although not among those who were more intensively poor. Rather than accomplishing this poverty reduction by improving achievements in one or two indicators, there were significant reductions in several deprivations, especially in access to roads, electricity, water, sanitation, and education. We also find that when income alone is used to target the poor, inclusion errors are marginal but exclusion errors are sizeable. Despite Bhutan’s significant progress, challenges remain as poverty is still high in rural areas. A multidimensional measure in the lines proposed in this paper can prove useful for monitoring poverty reduction, prioritizing groups and evaluating upon investment.     

Cross Cultural Application of the WHOQOL-SRPB in the Chinese Community with Diverse Spiritual Affiliations

In order to contribute to providing a methodology to ensure objectivity and transparency in the measurement of multidimensional poverty, this paper proposes a new threshold for the identification of the multidimensional poor which is also applicable to each of the dimensions of poverty, suitable for identifying the severely poor in developed countries. This new methodology is applied to analyse the evolution of material deprivation in Spain during the period of economic crisis, comparing the results with those obtained using other traditional approaches.     

Multidimensional Poverty in Mountainous Regions: Shan and Chin in Myanmar

Poverty is complex and multidimensional. People living in mountainous regions are vulnerable and more likely to experience multiple deprivation. However, few studies have addressed multidimensional poverty in mountainous regions. Using data from 4290 households of poverty and vulnerability assessment survey and the Alkire–Foster methodology, this paper estimate and decompose multidimensional poverty in the states of Shan and Chin in Myanmar. The multidimensional poverty is measured in five dimensions and a set of twelve indicators. Nearly half of the population in Shan and three-quarters in Chin were multidimensionally poor. The average intensity of poverty was 44% in Chin and 38% in Shan. The multidimensional poverty index was 0.33 in Chin and 0.19 in Shan. The level of multidimensional poverty in Chin was similar to that in of Sub-Saharan Africa. In Chin, 60% of the population was both multidimensionally poor and consumption poor, but in Shan, it was 20%. About 28% of the population in Shan and 15% in Chin were multidimensionally poor but not consumption poor. Deprivation in education accounts for one-third of the multidimensional poverty in Shan; while deprivation in health accounts for one-third of the multidimensional poverty in Chin. A higher proportion of multidimensionally poor had experienced shocks such as the death of a household member, agricultural loss, or death of livestock compared to the multidimensional non-poor. Multidimensional poverty was significantly higher for rural household, households with lower educational attainment, consumption poor and among those who lived in Chin. Poverty reduction programs require a holistic understanding of poverty and its different dimensions as well as the main contributing factors for effective planning and program implementation. Geographical targeting of poverty reduction program and larger investment in food, health, water, energy and education can reduce the extent of multidimensional poverty in Shan and Chin.     

The Multidimensional Measurement of Poverty in Belgium and Britain: A Categorical Approach

In recent years, both in socialscience and policy circles, there has been agrowing consensus on the multidimensionalnature of poverty. However, theoperationalisation of the concept has notfollowed this development, as most studies arestill primarily based on income. In thisarticle, we propose to measure the concept ofpoverty using both monetary and non-monetaryindicators. To this end, a latent classmeasurement model is used, allowing us to takeaccount of the multidimensionality of the dataand the discrete nature of most availablepoverty indicators. The proposed measurementinstrument allows for poverty to manifestitself in different ways or forms for differentsubgroups in the population. Furthermore, theoccurrence of multiple deprivation, rather thana `negative' score on only one indicator, istaken into account. In addition, specialattention is paid to the feasibility ofconstructing a multidimensional poverty measurewhich can be used to study poverty dynamicswith longitudinal panel data. We presentfigures on the size and the social distributionof the `poor' population in Belgium andBritain. These figures indicate that theresults of our multidimensional measurementprocedure are both plausible and substantivelyinterpretable.     

Poverty as Functioning Deprivation: Global Estimates

Poverty alleviation and eradication have always remained a major challenge for the political leadership at the national and international level. However, no consensus exists about the definition and measurement of poverty. Recent understanding sees poverty as much more than lack of income. Hunger, unemployment and ill heath are just some of many dimensions of poverty. We have contributed to the existing debate by defining poverty as a deprivation of a number of functionings (actual achievements), considered vital but not equally important for human wellbeing, caused by an inadequate command over market or nonmarket resources. We have identified nine basic functionings and corresponding indicators that best reflect these nine basic functionings and develop a composite index of poverty for 193 countries of the world for cross country comparison. We have analyzed poverty for two periods 1990–2000 and 2001–2010 to make an inter-temporal comparison in global poverty. According to our estimates, the global poverty has only modestly come down by 4 percentage points from 35% in 1990–2000 to 31% in 2001–2010. This contrasts sharply with the estimates based on the poverty line of the World Bank that the proportion of population living in extreme poverty has nearly halved from 47% in 1990 to 24% in 2015.     

Understanding the socio-economic distribution of multiple deprivation: An application of self-organising maps

In this paper we seek to contribute to recent efforts to develop and implement multi-dimensional approaches to social exclusion by applying self-organising maps (SOMs) to a set of material deprivation indicators from the Irish component of EU-SILC. The first stage of our analysis involves the identification of sixteen clusters that confirm the multi-dimensional nature of deprivation in contemporary Ireland and the limitations of focusing solely on income. In going beyond this mapping stage, we consider both patterns of socio-economic differentiation in relation to cluster membership and the extent to which such membership contributes to our understanding of economic stress. Our analysis makes clear the continuing importance of traditional forms of stratification relating to factors such as income, social class and housing tenure in accounting for patterns of multiple deprivation. However, it also confirms the role of acute life events and life cycle and location influences. Most importantly, it demonstrates that conclusions relating to the relative impact of different kinds of socio-economic influences are highly dependent on the form of deprivation being considered. Our analysis suggests that debates relating to the extent to which poverty and social exclusion have become individualized should take particular care to distinguish between different kinds of outcomes. Further analysis demonstrates that the SOM approach is considerably more successful than a comparable latent class analysis in identifying those exposed to subjective economic stress.     

Synergies Among Monetary,Multidimensional and Subjective Poverty: Evidence from Nepal

In this paper we construct a Nepal specific multidimensional poverty index using the Nepal Longitudinal Sample Survey (NLSS) for the period 1995–2010. The indicators for Nepal Multidimensional Poverty Index (NMP) have been chosen using the goals set by the Government of Nepal and the perceptions of adequacy as reported by households. In doing so this study combines multidimensional and subjective methods of measuring wellbeing. The subjective data is used to guide the choice of dimensions for the multidimensional analysis. Our findings show that Nepal has had a dramatic fall in multidimensional poverty along with the observed fall in consumption poverty in this period. Comparing the extent to which consumption poverty accurately identifies the multidimensionally poor, we find the error has reduced over time but remains large in proportion to the poverty rate implying the need for a multidimensional measure. For the different ethnic groups and regions the patterns of reduction in poverty are not homogenous and are different from those of consumption poverty with the NMP outperforming the consumption poverty in tracking targeted policy actions.     

Multidimensional Poverty in China: Findings Based on the CHNS

This paper estimates multidimensional poverty in China by applying the Alkire-Foster methodology to the China Health and Nutrition Survey 2000–2009 data. Five dimensions are included: income, living standard, education, health and social security. Results suggest that rapid economic growth has resulted not only in a reduction in income poverty but also in a reduction in multidimensional poverty in the last decade, both in terms of its prevalence and intensity. However, many challenges remain. There are wide disparities across provinces and between urban and rural areas, with poverty being 1.5 times higher in rural areas than in urban ones in 2009. Moreover, rising deprivation in education in rural and less developed provinces should also be a policymaking concern.     

From Rags to Riches? Immigration and Poverty in Spain

This article for first time explores the relationship between immigration and poverty in Spain. Using recent Spanish household surveys, it is found, first, that both moderate and severe poverty are more acute among immigrants than among nationals and social transfers play no substantial role in reducing monetary deprivation in the case of foreign-born population; in the second place, we perform an econometric analysis that shows that the different poverty risk faced by local and immigrant households is not driven by differences in basic household and demographic characteristics.     

Child Poverty in Vietnam: Providing Insights Using a Country-Specific and Multidimensional Model

Despite a wide under-prioritization, the issue of child poverty has received increasing attention worldwide over the last decade. The acknowledgement in Vietnam that child-specific poverty measurement is crucial for poverty efforts directed towards children, and the current lack thereof, instigated the development of a Vietnam child poverty approach. This paper proposes a country-specific, multidimensional and outcome-based approach for the measurement of the incidence, depth and severity of child poverty. It does so at the level of the individual child using household survey data. The development of such an approach at the level of the individual child presents an appropriate alternative for or supplement to the widely used monetary poverty approach, allowing for the use of compatible analytical methods. Findings suggest that 37% of all children in Vietnam live in poverty, with the most pressing areas of deprivation being water, sanitation and leisure. We do not find evidence for a gender bias but do observe a large urban–rural divide, regional disparities and large ethnic inequalities. We argue that this tailor-made approach is a valuable new tool for policy makers and analysts in Vietnam as it enables identification and analysis of poor children, their characteristics and most pressing areas of deprivation within the country’s specific social and cultural context.     

On ‘Consistent’ Poverty

The measurement of poverty as ‘consistent’ poverty offers a solution to one of the primary problems of poverty measurement within Social Policy of the last three decades. Often treated as if they were synonymous, ‘indirect’ measures of poverty, such as low income measures, and ‘direct’ measures, such as indices of material deprivation, identify surprisingly different people as being poor. In response to this mismatch, a team of Irish researchers put forward a measure which identified respondents in as being in poverty when they experienced both a low standard of living, as measured by deprivation indicators, and a lack of resources, as measured by a low income line. Importantly, they argued that the two measures required an equal weight. In this paper, I present a reconsideration of the consistent poverty measure from both conceptual and empirical perspectives. In particular, I examine the claim that low income and material deprivation measures should be given an ‘equal weight’. I argue that, from a conceptual perspective, the nature of the indicators at hand means that a deprivation-led measurement approach might be understood to align with the definition of poverty which Nolan and Whelan outline and, from an empirical perspective, that it is the material deprivation measure—and not the low income measure—which is particularly effective in identifying individuals at risk of multiple forms of deprivation. However, I argue that greater attention needs to be given to the question of whether indicators of material deprivation provide a sufficient measure of material poverty and suggest that advancing the measurement of material deprivation beyond its relatively rudimentary state represents an important priority for poverty research.     

Deriving Multidimensional Poverty Indicators: Methodological Issues and an Empirical Analysis for Italy

Theoretical and empirical studies have recently adopted a multidimensional concept of poverty. There is considerable debate about the most appropriate degree of multidimensionality to retain in the analysis. In this work we add to the received literature in two ways. First, we derive indicators of multiple deprivation by applying a particular multivariate statistical technique, the non-linear principal component analysis (NLPCA), which overcomes traditional limits of many of the mostly used methodologies for poverty measurement. Second, on the basis of the aforementioned indicators, we provide an accurate identification of the poor in Italy by analyzing deprivation both as a distinct phenomenon in different life domains and as a single multidimensional concept. The main determinants of poverty in Italy are then investigated by estimating logit regressions and an ordered probit model. Our empirical analysis is based on data from the Italian component of European Statistics on Income and Living Conditions (EU-SILC-2004).     

When Twenty-Four Hours is not Enough: Time Poverty of Working Parents

Individuals can be money poor, time poor or both. While income is the most used indicator of poverty, broader indexes including non-monetary aspects of deprivation have been proposed and measured. As one such measure, our study focuses on the element of deprivation arising from the time deficit of many working people. The usual poverty threshold is calculated as the amount of income to buy the minimum required goods and services from the market. This minimum required purchase is greater for these people since they have less time than the average person to produce some goods and services for themselves at home. So, they need money to buy these in the market in order to maintain the same consumption. The income standard must be supplemented to adequately measure actual poverty. Time use data make it possible to establish time requirements and time availability and provide a measure of time poverty. Using Canadian GSS 1998 data, and building on the work of Vickery (1977, ‚The time poor: A new look at poverty’, The Journal of Human Resources 12(1), pp. 27-48) and of Douthitt (1993, ‚The inclusion of time availability in Canadian poverty measures’, Time-Use Methodology: Toward Consensus (ISTAT, Roma), pp. 83–91), and our own previous study, we estimate time-adjusted poverty thresholds and rates for single and dual parent Canadian families. As expected, we have found high incidence of time deficit among the employed single parents with children. We make a case for the acceptance of a redefined poverty standard for such time-deprived groups.