An empirical analysis of monetary and multidimensional poverty: evidence from a household survey in Pakistan

ABSTRACT

The present study computes multidimensional poverty and compares it with unidimensional estimates of poverty for the district of Mandi Bahuddin in the Punjab province of Pakistan for the years 2010 and 2014. By employing the Foster, Greer and Thorbecke (FGT) and Alkire-Foster Methods, the incidence, severity and depth of unidimensional and multidimensionality poverty was estimated. We found an increase in absolute and relative poverty levels in 2014 as compared to 2010. The multidimensional poverty in terms of household assets has also increased over time. However, the relative proportion of educational and health poverty towards MPI remains higher, thereby calling for a holistic approach to identify multidimensional poverty in the social sector. A comprehensive policy dossier needs to be framed for designing effective poverty alleviation and social welfare programmes in the Punjab, Pakistan.