Multidimensional Child Poverty: From Complex Weighting to Simple Representation

Within the debates on poverty measurement among experts as well as the discussions about Sustainable Development Goals (SDGs) an interesting shift has taken place in recent years, away from uni-dimensional measurements (based on a poverty line) and towards multi-dimensional approaches. Any multi-dimensional approach is, by definition, dealing with the complexity of poverty across a range of aspects which need to be assessed separately before they can be combined (weighted) to produce an overall, synthetic measure. This measure, in turn, if it is going to be more than a theoretical curiosum, must be translated for and presented to the public at large and decision-makers in order to impact programs and policies to reduce and eliminate poverty. In this paper, all the steps involved in the last two sentences are explored. This is done in the context of the measurement of Child Poverty that was initiated over a decade ago by UNICEF. After a brief review of the history and evolution of the measurement of Child Poverty, three consecutive sections dealing with the issues raised above are introduced. First, based on the experience of over 70 countries from all developing continents, the selection of indicators is discussed. This is followed by a simple simulation showing the pitfalls of endogenous weights. The third of these sections explores the challenges in presenting these results to a wide, lay audience which are shown to be less intractable than the issues faced by weighted composite indexes and the “dollar-a-day” uni-dimensional metric. An additional section deals with the problem of embedding the Child Poverty measurement within the larger poverty picture of the country (i.e. comparing and complementing metrics of adult and overall poverty). The final section summarizes the main results and conclusions of the paper.     

Implementing a Multidimensional Poverty Measure Using Mixed Methods and a Participatory Framework

Recently, there have been advances in the development of multidimensional poverty measures. Work is needed however on how to implement such measures. This paper deals with the process of selecting dimensions and setting weights in multidimensional poverty measurement using qualitative and quantitative methods in a participatory framework. We estimate the multidimensional poverty measures developed by Alkire and Foster for a particular group: persons with psychiatric diagnoses in the United States. To select relevant dimensions and their relative ordering, two discussion groups are convened: one consisting of persons with lived-experience expertise and the other consisting of people with mental health service provision or research expertise. Several methods are used to convert dimension rankings into weights. The selection and ordering of dimensions differed between the two discussion groups, as did the resulting poverty measures. For instance, the poverty headcount using the dimensions and weights of the ‘lived experience’ group ranged from 20.61 to 26.96% as compared to a range of 18.62–33.19% using those of the ‘provider/researcher’ group. One of the main results of this study is that the Alkire Foster method is sensitive to the selection of dimensions and the methods used to derive rankings and weights. It points toward the limitation of relying exclusively on small scale qualitative methods for the selection and ranking of dimensions. In addition, the participatory framework used in this study was found to be essential in interpreting results, in particular with respect to the limitations of the data set in measuring relevant dimensions.     

Multidimensional Poverty and Inequality: Insights from the Upper Blue Nile Basin,Ethiopia

As stated in the 2018 global Multidimensional Poverty Index (MPI) report, Ethiopia has the second largest multidimensionally poor population in Africa (after Nigeria). The global MPI was created to measure household’s multiple deprivations, but little systematic study has been carried out on the application of MPI measures on a smaller scale and vis-à-vis other measures of poverty. In addition, most of the few existing studies ignore any measure of inequality amongst the multidimensionally poor. This study explored multidimensional poverty in three different drought-prone agro-ecological settings of the Upper Blue Nile basin, Ethiopia. A preliminary participatory exercise was carried out at the study sites to select important indicators and then a structured survey was administered to 390 systematically and randomly selected households. The Alkire–Foster method was used to analyse multidimensional poverty and verified it with Correlation Sensitive Poverty Index (CSPI). Multidimensional poverty incidence, adjusted head count ratio and inequality were significantly different between study sites (p?<?0.001). Results indicated a high incidence (88%, 82% and 80%), intensity (52%, 55% and 56%), MPI (46%, 45% and 45%) and inequality (53%, 60% and 63%) of poverty in Aba Gerima, Guder and Dibatie study sites, respectively. A high level of divergence was revealed between the MPI and CSPI in terms of identifying the poor. The living standard and land and livestock ownership dimensions contributed the most to MPI. The case study signifies the importance of inclusion of land and livestock indicators for the national MPI. Besides, it implies that researchers and policymakers need to account for smaller scale contextualised indicators and location differences when studying and designing anti-poverty interventions.

     

Effect of Financial Inclusion on Poverty and Vulnerability to Poverty: Evidence Using a Multidimensional Measure of Financial Inclusion

This study examines the effect of financial inclusion on poverty and vulnerability to poverty of Ghanaian households. Using data extracted from the seventh round of the Ghana Living Standards Survey in 2016/17, a multiple correspondence analysis is employed to generate a financial inclusion index, and three-stage feasible least squares is used to estimate households’ vulnerability to poverty. Endogeneity associated with financial inclusion is resolved using distance to the nearest bank as an instrument in an instrumental variables probit technique. Results showed that while 23.4% of Ghanaians are considered poor, about 51% are vulnerable to poverty. We found that an increase in financial inclusion has two effects on household poverty. First, it is associated with a decline in a household’s likelihood of being poor by 27%. Second, it prevents a household’s exposure to future poverty by 28%. Female-headed households have a greater chance of experiencing a larger reduction in poverty and vulnerability to poverty through enhanced financial inclusion than do male-headed households. Furthermore, financial inclusion reduces poverty and vulnerability to poverty more in rural than in urban areas. Governments are encouraged to design or enhance policies that provide an enabling environment for the private sector to innovate and expand financial services to more distant places. Government investment in, and regulation of, the mobile money industry will be a necessary step to enhancing financial inclusion in developing countries.

     

Gender and Multidimensional Poverty in South Africa: Applying the Global Multidimensional Poverty Index (MPI)

Recent work has shown that the gender gap in income poverty has widened in post-apartheid South Africa even though overall poverty levels have declined. One of the main criticisms of money-metric studies of gendered poverty differences is that income is only one dimension of poverty and that other measures of welfare may better reflect the relative well-being of women and female-headed households. This article presents a multidimensional approach to measuring the gender poverty gap in post-apartheid South Africa. Using data from the 2008 wave of the South African National Income Dynamic Study, the internationally comparable multidimensional poverty index (the MPI) is used to estimate gender differences in a number of different achievements. The findings suggest that the multidimensional gender poverty gap is similar to the poverty gap measured by the conventional money-metric approach at several national poverty lines. However, the MPI poverty differential between female- and male-headed households is slightly narrower than the income poverty gap between these two household types. In order to explore these findings further, the paper decomposes the components of multidimensional poverty by gender and for both female- and male-headed households. The paper concludes by considering how greater investments in health care delivery and in basic services, particularly in rural areas, may yield progress towards gender equality.     

Monitoring Progress in Child Poverty Reduction: Methodological Insights and Illustration to the Case Study of Bangladesh

Important steps have been taken at international summits to set up goals and targets to improve the wellbeing of children worldwide. Now the world also has more and better data to monitor progress. This paper presents a new approach to monitoring progress in child poverty reduction based on the Alkire and Foster adjusted headcount ratio and an array of complementary techniques. A theoretical discussion is accompanied by an assessment of child poverty reduction in Bangladesh based on four rounds of the demographic household survey (1997–2007). Emphasis is given to dimensional monotonicity and decomposability as desirable properties of multidimensional poverty measures. Complementary techniques for analysing changes over time are also illustrated, including the Shapley decomposition of changes in overall poverty, as well as a range of robustness tests and statistical significance tests. The results from Bangladesh illustrate the value added of these new tools and the information they provide for policy. The analysis reveals two paths to multidimensional poverty reduction by either decreasing the incidence of poverty or its intensity, and exposes an uneven distribution of national gains across geographical divisions. The methodology allows an integrated analysis of overall changes yet simultaneously examines progress in each region and in each dimension, retaining the positive features of dashboard approaches. The empirical evidence highlights the need to move beyond the headcount ratio towards new measures of child poverty that reflect the intensity of poverty and multiple deprivations that affect poor children at the same time.     

Child Well-being in Flanders: A Multidimensional Account

In this article we characterise the well-being of young children in the Belgian region of Flanders. We focus on three commonly used indicators: educational attainment, the existence of special needs and the occurrence of problematic behaviour. The former derives from a relatively impartial source, the schooling system, while the latter two originate from parental assessment. Somewhat surprisingly, the different measures are only weakly associated with each other. Moreover, negative outcomes tend to correlate with different characteristics of the child and the household, depending on the well-being indicator used. Only a low level of education of the mother and the fact the child is living in a single parent family is consistently associated with negative outcomes. This is not true, however, for a whole range of other characteristics, like the work schedule of the parents, the sex of the child, the child’s rank in the line of siblings or the number of children in the household. Consequently, policy makers should be wary of quick conclusions when presented with results from single indicator research. Educational lagging, for example, may seem a very objective measure of problems, yet it does not necessarily coincide with problematic behaviour nor a parental perception of special needs. Hence, political action is not self-evident and may require additional justification. For future research, a more thorough investigation about the links between the various indicators of child well-being seems indicated.

Multidimensional Almost Dominance: Child Wellbeing in Egypt

A major drawback of First Order Stochastic Dominance approach is dominance indetermination. Levy and Leshno in 2002 suggested Almost Stochastic Dominance as a remedy in the uni-dimensional case. We introduce a Generalization of Almost First and second Order Dominance (MAFOD and MASOD) to the multidimensional case with application on child wellbeing in Egypt. We perform a multidimensional (FOD) analysis on seven deprivation indicators for three age-groups of children from Egypt 2014 Demographic and Health Survey (EDHS14). This methodology allows the ordinal ranking of regions and governorates of Egypt in terms of their children wellbeing based on their probability of domination. To solve the dominance indetermination we apply MAFOD and MASOD.     

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.     

Social Structure and Child Poverty

Child poverty, as a critical indicator of the QOL, is intricately related to the social structure of the community. This hypothesis is explored for the 159 counties of Georgia for the year 2000. The influence of demographic, economic, family and health factors upon child poverty are explored through models of total, black and white child poverty. Factor analyses of factors uncovered by the models identify the social-structural features of counties in relation to child poverty. Counties considered “Deprived/rural” harbor child poverty, while counties described as “Business/money” and “Progressive/urban” bear a negative relationship to child poverty. Positively associated with child poverty are residential stability, unemployment, low educational achievement, youth and age dependency, single-parent female household heads with children, grandparent child care, and health disability of child, elders and of working-age persons. Structural factors militating against child poverty are persons with greater education, higher population density, out migration, larger married population, higher retail sales, larger middle class families, higher weekly wages, and other structural features of the county.     

Income and Beyond: Multidimensional Poverty in Six Latin American Countries

This paper studies multidimensional poverty for Argentina, Brazil, Chile, El Salvador, Mexico and Uruguay for the period 1992–2006. The approach overcomes the limitations of the two traditional methods of poverty analysis in Latin America (income-based and unmet basic needs) by combining income with five other dimensions: school attendance for children, education of the household head, sanitation, water and shelter. The results allow a fuller understanding of the evolution of poverty in the selected countries. Over the study period, El Salvador, Brazil, Mexico and Chile experienced significant reductions in multidimensional poverty. In contrast, in urban Uruguay there was a small reduction in multidimensional poverty, while in urban Argentina the estimates did not change significantly. El Salvador, Brazil and Mexico, and rural areas of Chile display significantly higher and more simultaneous deprivations than urban areas of Argentina, Chile and Uruguay. In all countries, deprivation in access to proper sanitation and education of the household head are the highest contributors to overall multidimensional poverty.     

Multidimensional Poverty in Paraguay: Trends from 2000 to 2015

The paper discusses Kenneth C. Land and Alex C. Michalos’ review and assessment of the evolution of research on social indicators, quality of life and well-being over the past fifty years. The contribution deals with the impacts of three major societal changes on the future research agenda of social indicators research: firstly, impacts of the changing class structure of post-industrial society, secondly, globalization impacts, including its economic, political, cultural and institutional dimensions, and thirdly, the impacts of an increasingly networked digitalization of production and consumption.     

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.     

Rethinking Dimensions: The South African Multidimensional Poverty Index

The growth of literature on multidimensional poverty measures generates an uncertainty about which dimensions best capture the extent of poverty. This paper applies multiple correspondence analysis in the context of multidimensional poverty in South Africa to identify statistically valid additional dimensions using National Income Dynamics Study data of 2012. The results confirm the argument that economic status (lack of employment) and financial commitment (over-indebtedness) can be regarded as important dimensions, as their occurrence constrains households from participating in the activities essential in modern society. It is therefore proposed that, in addition to health, education, and living standard dimensions, both economic status and financial commitments should be included in the framework for the South African multidimensional poverty analysis. A central contribution of this work is a proposal of a hybrid multidimensional measure which recommends a combination of both non-monetary and monetary indicators, in particular over-indebtedness.     

Extreme Energy Poverty Incidence and Determinants in Nigeria: A Multidimensional Approach

Social Indicators Research - Energy poverty has emerged in recent times as a crucial aspect of poverty, afflicting the developing world in general and Nigeria in particular. Drawing from some of...     

The Dynamics of Multidimensional Poverty in Contemporary Australia

Progressively more researchers argue that successfully measuring social inequalities requires moving from income-based to multidimensional poverty indicators, but evidence on Australia is still largely reliant on the former. Using long-running panel data from the Household, Income and Labour Dynamics in Australia Survey we examine trends in multidimensional poverty in Australia between 2001 and 2013. We find that this has been relatively stable, with some evidence of an upwards trend following from the 2008 Global Financial Crisis. However, a closer examination of the individual components reveals a more dynamic picture. Deprivation concerning health, material resources, social support and education increased over the 13-year observation period, offsetting decreases in deprivation concerning safety perceptions, employment and community participation. Additionally, using counterfactual simulations, we examine the relative roles of different poverty domains in explaining changes in Australian multidimensional poverty. We find that recent year-on-year changes in multidimensional poverty are mainly driven by fluctuations in social support, health and material resources. Altogether, our findings suggest that Australian poverty-reduction policies would enhance their effectiveness and efficiency by focusing on improving disadvantage in the domains of health and material resources.     

Dynamics of Multidimensional Poverty and Uni-dimensional Income Poverty: An Evidence of Stability Analysis from China

Social Indicators Research - In this paper, we construct an illustrative multidimensional poverty index for China and compare it with income poverty using the panel data from multiple waves of the...     

Considering the Extremely Poor: Multidimensional Poverty Measurement for Germany

This paper applies the Alkire and Foster (J Public Econ 95:476–487, 2011) index of multidimensional poverty to German data. This is done with respect to the politically most important dimensions of poverty mentioned in the German Federal Government’s report on poverty and wealth. Additionally, a modification of the identification step of the Alkire–Foster index is proposed to guarantee that individuals, who are extremely poor in only few dimensions, are not omitted by the index.     

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.