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.