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Do Monetary and Nonmonetary Indicators Tell the Same Story About Chronic Poverty? A Study of Vietnam in the 1990s
Abstract
This paper investigates whether monetary and nonmonetary indicators tell the same story about chronic poverty using a unique panel data from Vietnam in the 1990s. Defining chronic poverty as occurring when an individual is monetarily poor, stunted, malnourished or out of school in both waves of the panel, the overlap and correlation between subgroups of the chronically poor are shown to be modest. Some, but not all, nonmonetary indicators are more persistent and complement monetary indicators of chronic poverty. Taking account of the multiple dimensions of chronic poverty cannot be a simple additive exercise.
... The empirical literature on poverty measurement holds that there exists mismatch between monetary and multidimensional poverty (Baulch and Masset 1990;Roelen et al. 2012;Alkire et al. 2015;Kwadzo 2015;Tran et al. 2015;Bader et al. 2016;Suppa 2016;Roelen 2017Roelen , 2018Ballón et al. 2018;Salecker et al. 2020). Notwithstanding this, the research on poverty mismatch and overlap is limited in Sub-Saharan Africa (SSA) (Klasen 2000;Levine 2012;Salecker et al. 2020). ...
... Overall, the results show that multidimensional poverty levels are higher than monetary poverty levels in Botswana. First, consistent with the empirical literature from other countries (Baulch and Masset 1990;Bradshaw and Finch 2003;Levine 2012;Roelen 2017Roelen , 2018Kim 2019), the results reveal limited overlap in findings for monetary and multidimensional poverty. Second, monetary poverty identifies a smaller proportion of the population as poor than multidimensional poverty measures. ...
... Second, this study also makes a novel contribution to the limited literature on poverty mismatch in SSA (Levine 2012;Salecker et al. 2020) by using a country-specific individual-level multidimensional poverty measure. The study also adds to the debates on poverty mismatches globally (Baulch and Masset 1990;Kwadzo 2015, Bader et al. 2016). Third, the study extends the research on poverty mismatch in SSA by investigating factors influencing poverty mismatches using multinomial logistic regression (Roelen 2018). ...
This study offers the first attempt in Botswana and adds to the limited literature on poverty mismatch and overlaps in Sub-Saharan Africa. Using the 2015/16 Botswana multi-topic household survey data, the study compares the country’s current official monetary poverty measure with an individual-level multidimensional poverty measure. The results show that multidimensional poverty levels are higher than monetary poverty levels. The results also reveal that significant mismatches and overlaps exist, suggesting that individuals experiencing monetary and multidimensional poverty are not the same. However, the mismatch size and overlaps vary across different subgroups of the populations and place of residence. The econometric estimation results show that age, household size, household head’s education status, household head’s employment status, and location (place of residence) influence poverty mismatch and overlap in Botswana. The findings suggest the need to go beyond traditional monetary poverty measure and complement it with multidimensional poverty measure to identify those left behind. The results are critical for policy interventions, especially for monitoring the trends, understanding poverty dynamics, and targeting social assistance programmes.
... Many welfare studies (such as Adzawla et al., 2016;Akerele and Adewuyi, 2011;Asfaw, 2010) have adopted the income or household consumption expenditure approach. However, monetary welfare approaches are severely criticized by some researchers and poverty analysts such as Adzawla et al. (2016); Nolan and Whelan (2010); Baulch and Masset (2002); Ravallion (1995). Monetary welfare measure is considered erroneous and inaccurate as it suppresses essential information on welfare (Baulch and Masset, 2002). ...
... However, monetary welfare approaches are severely criticized by some researchers and poverty analysts such as Adzawla et al. (2016); Nolan and Whelan (2010); Baulch and Masset (2002); Ravallion (1995). Monetary welfare measure is considered erroneous and inaccurate as it suppresses essential information on welfare (Baulch and Masset, 2002). Approximating welfare to per capita expenditure is an inadequate measure of welfare since this does not account for many elements of welfare such as food quality, health status, environment, and happiness (Adzawla et al., 2016). ...
... Despite the fact that many empirical studies such as Adzawla et al. (2016); Abimbola and Oluwakemi (2013); Asfaw (2010); Akerele and Adewuyi (2010) measured welfare using monetary approach since this is easy to estimate, the monetary approach has severely been criticised due to its flaws (Nolan and Whelan, 2010;Ravallion, 1995). Baulch and Masset (2002) noted that monetary welfare measure conceals vital information on welfare leading to measurement error. For instance, Adzawla et al. (2016) acknowledged that the use of household per capita expenditure or consumption as a proxy for welfare gives incomplete definition of welfare because it does not consider quality of food, health status, environment, happiness and other elements of welfare. ...
The use of migrant labour is prevalent on cocoa plantations in Ghana and though it boosts cocoa production and serves as an economic coping strategy, there may be negative consequences. Using primary data from 600 respondents, this study investigated migrants’ working conditions, work-related challenges, welfare and social benefits from migration for cocoa production in Ghana. Data was analyzed using perception index, Kendall’s coefficient of concordance, coping strategy index, multivariate probit, multiple linear regression, negative binomial regression, multidimensional poverty index (MPI), asset score, per capita expenditure and income, and quantile regression. Migrants and host employers have positive perceptions about the welfare and working conditions of migrant labourers. Migrants are generally satisfied with their working hours, nature of contract, and freedom but unsatisfied with remuneration, welfare and health/safety conditions associated with working on cocoa farms. The predominant work-related challenges cocoa farm labourers face are the temporary nature of their work/contracts, low wages, poor quality food, poor accommodation, and limited access to social amenities. The study has shown that there is net social gain from labour migration for cocoa production. The MPI and per capita expenditure suggest that non-migrants are better off in welfare than migrants. Education, secondary occupation, nature of contract, expectation and earnings before migration, social capital, asset ownership, and social amenities are key determinants of migrants’ satisfaction with working conditions, number of coping strategies adopted for food shortfalls, and welfare. To improve their welfare and satisfaction with working conditions, migrants on cocoa farms should be given protective working gear, long-term or renewable contracts and they should be encouraged to join social groups and engage in secondary occupations.
... Unlike the monetary and basic needs approaches that focus on income or consumption required to mobilize basic resources, the capability approach, pioneered by Amartya Sen and Martha Nussbaum, focuses on the freedoms required to achieve valuable outcomes and improve well-being (Sen 1979(Sen , 1984(Sen , 1992(Sen , 1999Nussbaum 1988Nussbaum , 1992Nussbaum , 2000. By considering poverty as deprivation in both monetary and non-monetary aspects related to well-being (Greeley 1994;Narayan et al. 2000;Stiglitz et al. 2009), a number of studies have used a multidimensional approach to measure poverty Foster 2008, 2011;Atkinson 2003;Baulch and Masset 2003;Bourguignon and Chakravarty 2003;Gunther and Klasen 2009). ...
... The dynamics of poverty has been explored through a combination of monetary and multidimensional poverty measures. A number of studies found mismatches between monetary and multidimensional poverty using cross-sectional or panel data (Baulch and Masset 2003;Bradshaw and Finch 2003;Klasen 2000;Laderchi 1997;Roelen 2015;Santos et al. 2015;Sumarto and De Silva 2014;Tran et al. 2015). Several studies showed the lack of association between the dynamics of monetary and multidimensional poverty (Baulch and Masset 2003;Gunther and Klasen 2009;Samman and Santos 2010) but few studies have investigated the dynamics of child poverty (Roelen 2017a;Singh and Sarkar 2015). ...
... A number of studies found mismatches between monetary and multidimensional poverty using cross-sectional or panel data (Baulch and Masset 2003;Bradshaw and Finch 2003;Klasen 2000;Laderchi 1997;Roelen 2015;Santos et al. 2015;Sumarto and De Silva 2014;Tran et al. 2015). Several studies showed the lack of association between the dynamics of monetary and multidimensional poverty (Baulch and Masset 2003;Gunther and Klasen 2009;Samman and Santos 2010) but few studies have investigated the dynamics of child poverty (Roelen 2017a;Singh and Sarkar 2015). ...
This study investigates transitions in monetary and multidimensional poverty using the 2006 and 2009 Young Lives surveys in Ethiopia, India, Peru, and Vietnam. While the headcount ratio in both measures of poverty decreases over time, there is only a small overlap between the groups in monetary and multidimensional poverty in either or both waves. Children remaining in monetary poverty are more likely to stay in multidimensional poverty. However, children escaping from monetary poverty do not always exit from multidimensional poverty. The results suggest the need to go beyond traditional monetary poverty indicators to understand and monitor poverty dynamics among children.
... It is possible to distinguish between monetary poverty and non-monetary poverty-in the latter are included other variables different from the income such as education, nutrition, health, among others-which give different transition matrices. In fact, Baulch and Masset [18] find that monetary poverty is less persistent than non-monetary poverty because, for example, malnutrition has long-term effects. This is due to the consumption/income variables that are measured as flows; on the other hand, education and health are measured as stock, which change more slowly than the flow variables. ...
... It is important to clarify three aspects of the coefficient calculation: (i) the absolute value is used; (ii) restricted value from 0 to 1; and (iii) it is obtained from the quotient of two areas, in which the Lorenz curve is key. 18 Then, five poverty line values (thresholds) were placed, which correspond to the entry of the first quantile, the first quartile, the median, the average, and the income belonging to 60% of the distribution. When the simulation exercise was performed, a Gini of 0.45 was obtained, which is the result of the data presented in Table 2. ...
... In any modification of the line, this method classifies a household/individual as poor if his income/expenditure is less than the value of a given PL (or threshold). 18 The details of calculating Gini coefficient are beyond the scope of this paper. It is suggested to see Medina [50]. ...
... Para a literatura econômica (STIFFEL, SAHN, 2000;BAULCH;MASSET, 2003;ROCHA, 2003;WORLD BANK, 2016), os fatores que definem a pobreza também constituem indicadores de desigualdade econômica e exclusão social importantes para a formulação de políticas sociais. Segundo Santos (2007), a importância de avaliar a pobreza segundo suas especificidades consiste na capacidade de inserir variáveis heterogêneas na formulação das políticas econômicas, de modo que estas políticas sejam eficazes de acordo com a região ou população atendida. ...
... Para a literatura econômica (STIFFEL, SAHN, 2000;BAULCH;MASSET, 2003;ROCHA, 2003;WORLD BANK, 2016), os fatores que definem a pobreza também constituem indicadores de desigualdade econômica e exclusão social importantes para a formulação de políticas sociais. Segundo Santos (2007), a importância de avaliar a pobreza segundo suas especificidades consiste na capacidade de inserir variáveis heterogêneas na formulação das políticas econômicas, de modo que estas políticas sejam eficazes de acordo com a região ou população atendida. ...
Este artigo tem como objetivo analisar os efeitos de políticas sociais no combate à pobreza e desigualdade da distribuição de renda no Brasil nos anos de 2016 e 2017. Foram utilizados os microdados da PNAD (Pesquisa Nacional por Amostra de Domicílio) no intuito de encontrar as chances de os chefes de domicílios estarem vivendo em situação de pobreza e observar a participação de programas sociais no rendimento destes indivíduos. Para tal finalidade, foi realizada uma estimação do modelo logit e cálculos de índice de desigualdade e pobreza. Os resultados encontrados apontam que há uma desigualdade na distribuição dos rendimentos por gênero e que as mulheres chefes de domicílio têm nos programas sociais uma maior parcela na composição de suas rendas, quando comparadas aos homens. Quando analisado por escolaridade, a participação de programas sociais no rendimento reduz conforme o aumento de anos de estudos. A intensidade e a severidade da pobreza são maiores nos chefes de domicílio do sexo feminino. Para os programas sociais, as estimativas evidenciam efeitos positivos no alívio imediato da pobreza. No entanto, foi encontrado que chefes de família não brancos, moradores da região rural e do Nordeste brasileiro têm maiores chances de vivenciar a pobreza no Brasil.
... In fact, this method was initiated by Ringen (1985Ringen ( , 1988 calling for the adoption of the "direct approach" that links poverty to difficulties encountered in various dimensions: health, employment, income, relationships, education, housing, and others (Mack and Lansley, 1985). In the same logic, Callan et al. (1993) as well as Baulch and Masset (2003) used monetary and non-monetary indicators which lead to the different results depending on them. Also, Ruggeri Laderchi (1999) discussed the difference between the capability approach and the monetary approach. ...
... In Tunisia, monetary poverty undergoes a constant decline, as evidenced by the official figures provided by the National Institute of Statistics (INS). However, there is still a very significant difference, particularly according to the environment and the region of residence (INS 2010 andEl Lagha and Bouassida, 2015;Ayadi et al., 2005). ...
The objective of this paper is to provide a measure of deprivation in Tunisia. The focus will be on non-monetary deprivation which will complement the profile of the poor in the country. The work is carried out on Tunisian data from the national survey on the budget, consumption, and the household’s standard of living (2015). The study tries to explore, in addition to the monetary dimension, the deprivations in Tunisia in the essential dimensions of a dignified and respectable human life: housing, education and health. The results obtained show a great disparity in monetary and non-monetary deprivation, particularly in the housing and education dimensions. Household characteristics seem to be an important element in the extent of deprivation. These include the location, region of residence as well as the socio-economic characteristics of the household head. The present paper stands out from several recent works on the phenomenon in Tunisia, based mainly on monetary indicators. By this aspect, this study contributes to a better understanding of poverty in the country.
... With regards to non-monetary indicators, while earlier work tends to focus on single dimensions (Baulch and Masset, 2003) or Principal Component Analysis derived weighted dimensions (Klasen, 2000) most of the selected studies use multidimensional poverty indexes (MPI) based on Alkire-Foster methodology (Alkire and Foster, 2011). ...
... The selected literature includes such panel studies, and a general finding is that the mismatch between monetary and non-monetary poverty is not improved when switching from static to dynamic settings. Indeed, Baulch and Masset (2003), using Chi-square tests of independence, find that the distribution of consumption poverty is as different from that of food and education poverty in both dynamic and static setting. Also in Vietnam, Tran (2015) finds that among those who escaped consumption poverty, only 17% also rose from non-monetary poverty. ...
While the study of poverty is popular amongst academia, there is yet to be a consensus on what defines such a phenomenon. Basing their arguments on different conceptual frameworks, some argue for a definition in monetary terms, as a lack of income or consumption, while others support a non-monetary approach focusing on shortcomings in diverse dimensions (health, education, nutrition…). Does it really matter that researchers do not agree on a definition of a poverty? Probing the empirical literature comparing monetary and non-monetary poverty in developing countries, this survey argues that different definitions of poverty lead to different populations identified as poor. Indeed, cross-tabulating poverty headcounts, it finds that a sizable portion of the non-monetary poor are excluded by the monetary approach. Moving to a subgroup level, it finds nonmonetary poverty amongst the monetary richest, and considerable disagreements with regards to poverty risks. In addition, these significant differences are not resolved when switching to a dynamic setting through panel studies. Policy implications are important: the risk mistargeting and misevaluation of policies is high if we do not consider both approaches concomitantly without one taking precedence over the other.
... In Vietnam, while there have been many studies addressing poverty reduction concerns, for example Minot and Baulch (2005), Baulch and Masset (2003), Vu & Glewwe (2011), World Bank (2012), few studies have specifically addressed food security and nutrition aspects in this country. Molini (2006) describes the changes in food consumption patterns in Vietnam over time and finds evidence of substitution of low micronutrient food items, such as rice and cereals, and in favor of high micronutrient items, such as fruit, vegetables, fish and meat, during the 1990s. ...
... Several previous studies have pointed out the divergence between Vietnam's record on poverty reduction and its record on malnutrition. Baulch and Masset (2003) argued that monetary poverty, i.e. poverty measured in terms of money values, is less persistent than either malnutrition among adults (measured by Body Mass Index) or stunting among children in Vietnam in the 1990s. They claimed that defining chronic poverty based on either monetary poverty or on malnutrition can lead to significantly different results. ...
This paper analyzes calorie consumption in Vietnam using the household survey data. The data suggest that food insecurity is still a major problem in Vietnam, with nearly 40 percent of the population being unable to meet their calorie requirement. Employing nonparametric and parametric estimation techniques, the paper examines the relationship between household calorie consumption and per capita household expenditure in Vietnam. The analysis indicates a positive and significant relationship between per capita expenditure and per capita calorie consumption. The mean calorie elasticity is estimated to be between 0.21 and 0.31 by the parametric method and 0.20 by non-parametric method. In addition, simulated income and food price changes indicate that undernutrition is very responsive to changes in income and food prices
... There is a small amount of literature available on multidimensional poverty in Vietnam (for example, Asselin 2009;Baulch and Masset 2003;Roelen et al. 2010Roelen et al. , 2012Tran et al. 2015); however, these studies use an arbitrary poverty cut-off to divide the population in a dichotomous group of poor and non-poor. Such a classification results in a huge loss of information on those who are partially poor, especially when they are living in similar conditions to those who are considered poor, but happen to just fall on the opposite side of the poverty line (Makdissi and Wodon 2004). ...
... It has been determined in various welfare research studies that education level has significant effects on poverty reduction (see, for example, Alkire 2007; Alkire and Santos 2014;Santos et al. 2015). A number of previous studies in Vietnam report that there is high overlap between chronic income poverty and out-of-school primary school-age children (Roelen et al. 2010;Baulch and Masset 2003). Therefore, based on the Sustainable Development Goals (SDGs; also called Global Goals for Sustainable Development) on education, we include two indicators to identify the education dimension: average schooling achievement of adult members, and school attendance of the children. ...
This study investigates seven dimensions of poverty in Vietnam (income, health, education, housing, assets, basic services and economic status) using the Household Living Standard Survey data of 2014. The Government of Vietnam disburses funds for poverty alleviation to regions on the basis of incidence of household income poverty. Our study shows that this method neither fully captures the complex regional diversity of poverty nor does it accurately identify regions with a higher severity of poverty. For the first time in poverty studies of Vietnam, we explore the role of multiple spatial levels on poverty in multiple dimensions. Unlike the practice in the existing literature which classifies the poor with an arbitrary poverty cut-off, we use a fuzzy method that allows the inclusion of people who are in partial poverty. Furthermore, by utilizing random intercept multilevel models to decompose the variation of poverty at the household, commune, district and province levels, poverty maps for Vietnam are developed to visualize the spatial evidence of the severity and incidence of poverty. We identify that the provinces that are relatively less (more) poor in the income dimension are more (less) destitute in several other dimensions, which clearly shows a need for special policy attention. Our method reveals that the poverty ranking of provinces in regional Vietnam departs widely from those obtained through traditional single-level analysis. This suggests that poverty in Vietnam can be explained not only by characteristics at the household level, but also by contextual factors at higher levels (commune/village, district, province). These empirical findings can help Vietnamese policy makers determine suitable strategies to effectively target the most deprived regions and to develop more appropriate poverty-alleviation programs.
... The concept of multi-dimensional poverty/well-being has been further operationalized by academics over the years since the concept was first established (Bastos, Fernandes, & Passos, 2004;Baulch & Masset, 2003;Bourguignon & Chakravarty, 2003;Bradshaw & Finch, 2003;Klasen, 2000;Perry, 2002). The underlying idea is that poverty is more than just monetary poverty, but that there can be deprivation in many other areas. ...
... The underlying idea is that poverty is more than just monetary poverty, but that there can be deprivation in many other areas. Several studies suggest that the use of monetary and multidimensional poverty measures result in different depictions of poverty (Klasen, 2000;Perry, 2002;Baulch & Masset, 2003;Bastos et al., 2004;Whelan, Layte, & Maitre, 2004). Assessing poverty or well-being from a multidimensional perspective allows for addressing other key areas such as health, education, living standards, physical safety as well as income. ...
The purpose of this paper is to better understand the relationship between migration and multi-dimensional well-being in the context of Ethiopia. We investigate the differences in well-being between migrant, non-migrant and return migrant households. We then go a step further to understand the role of migrants destinations for well-being by disaggregating migration destination to the Middle East, Africa and the North. We find that migrant and return migrant households are better off in terms of well-being than non-migrant households. Furthermore, the findings underline the importance of taking migrants destinations into account in determining the wellbeing of the households left behind. While households with a migrant in the North are significantly more likely to report higher well-being outcomes than non-migrant households, this is not true for households with migrants in other destination regions.
... Findings from studies of population-wide poverty largely suggest that the use of monetary and multidimensional measures results in different pictures of poverty, pointing towards a modest, even limited, overlap of results. Evidence originates from both low-and middle-income contexts (Baulch and Masset, 2003;Gaihre, 2012;Klasen, 2000;Kumar, 2012;Levine, 2012;Nilsson, 2010;Ruggeri Laderchi et al., 2003;Sahn and Stifel, 2003;Santos, 2012;and Tran et al., 2015) and high-income country settings (Bradshaw and Finch, 2003;Perry, 2002;Wagle, 2009). Studies on child poverty are limited, but an indicative review suggests that different measures point towards limited correlation and distinct groups of children as being poor. ...
... It provides micro-data at the level of both the household and its individual members on a range of issues related to children's well-being and child poverty as well as social protection. Previous studies using the VHLSS data did not find attrition bias (Baulch and Masset, 2003) and assumed an unbiased sample (Günther and Klasen, 2009). Sample sizes per cross-sectional wave and for the full panel data are presented in Table 1. ...
Although the multidimensional nature of poverty is widely recognized, the extent to which monetary measures can serve as a proxy for non-monetary measures remains unresolved. This is of particular concern for children given their dependence on others for fulfilment of basic needs and assumptions about intra-household distribution that underpin monetary measures. This article adopts an innovative mixed-methods approach to investigate child poverty overlap and mismatch in the low- and middle-income countries of Ethiopia and Vietnam using secondary longitudinal survey data and primary qualitative data from adults and children. Findings indicate that monetary and multidimensional poverty are distinct constructs that are linked, but cannot serve as a proxy for one another. While the degree of dissonance depends on the types of indicators under consideration, poverty mismatch persists regardless of time, place and multidimensional measure under consideration. © 2017 The Authors. Development and Change published by John Wiley & Sons Ltd on behalf of Institute of Social Studies
... Expanding empirical evidence from both developed and developing country contexts suggests that outcomes based on monetary and multidimensional approaches are often loosely associated and that one measure cannot serve as a proxy for another (Baulch and Masset, 2003;Bradshaw and Finch, 2003;Klasen, 2000;Nilsson, 2010;Wagle, 2009). Evidence with respect to child poverty is less extensive but points towards similar mismatch patterns (Notten, 2012;Roelen et al, 2012;Roelen and Notten 2013) and indicates that monetary and multidimensional child poverty are different phenomena (Roelen, 2017). ...
... It provides microdata at the level of both the household and its individual members on a range of issues related to children's wellbeing and poverty. Previous studies using the VHLSS data did not find attrition bias (Baulch and Masset, 2003) and assumed an unbiased sample (Günther and Klasen, 2009). Sample sizes per cross-sectional wave and for the full panel datasets are presented in Table 1. ...
An expanding evidence base suggests that children experiencing monetary and multidimensional poverty are not the same. This article breaks new ground by providing a unique mixed methods investigation of drivers of child poverty mismatch in Ethiopia and Vietnam, considering the role of measurement error and individualistic and structural factors. The analysis capitalises on large-scale secondary quantitative panel data and combines this with purposively collected primary qualitative data in both countries. It finds that factors at the household and structural level can mediate the effects of monetary poverty in terms of multidimensional poverty and vice versa, but that the size and sign of these effects are specific to place and time. The policy mix aiming to reduce all forms of child poverty need to be targeted on the basis of a multidimensional assessment of poverty and reflect the complex and context-specific interactions between determinants of child poverty.
... Additionally, poverty was defined as an individual's inability to access well-being as well as their inability to purchase basic goods or services [15], [16]. To address this issue, recent researchers have consistently combined monetary and non-monetary measurements, such as Battiston et al. (2013), Baulch and Masset (2003), Duclos et al. (2006), McKay & Lawson (2003), Scott (2002), Whelan (2004), andYu (2013). Furthermore, Sen (1976) suggested two steps in the development of poverty measurement: the identification and aggregation of the poor. ...
In Indonesia, poverty continues to bea major issue. According toStatisticsIndonesia,there were9.78% ofthepopulation living in poverty in 2020, withJava Island accounting for50% of the nation’s total poor people. Furthermore, poverty reduction is the primary concern due to Central Java’s high poverty rate,which is still higher than the national average, so it has becomea shared challenge. This study measuredpoverty by clusters based ona variety ofdeprivations thatresidents of 35 regenciesor municipalities in Central Java Provinceexperienced. Additionally,16poverty indicators based on the criteria and income of the poor and underprivileged from the Ministry of Social Affairscomprised the variables used in this study. Moreover,by selecting the optimal cluster, characteristic poverty was obtained employing fuzzy C-means (FCM)as cluster analysis. In addition, each municipality/regency that shares a similarity indicator with another municipality/regencywas categorized into one cluster. The clusters were fundamental to understanding the determinants of poverty and poverty alleviation programs. According to the clustering results, there were four clusters consideredthe best cluster,and it demonstratedthat the indicators most associated withpoverty were non-food expenditure, drinking water adequacy, access to sanitation facilities, the open unemployment rate, and television ownership.
... Utilizing a dynamic perspective in poverty analysis offers decision-makers a deeper understanding of poverty's enduring nature, thereby addressing the shortcomings of a static approach. This strategy enables decision-makers to concentrate on the causes of poverty rather than only treating its symptoms, which can help in the development and application of more efficient strategies for eradicating poverty (Baulch & Masset, 2003;Cappellari & Jenkins, 2002;Tran et al., 2015). ...
Purpose: The purpose of this study is to add to the current poverty dynamics literature by investigating the underlying causes of poverty persistence in Turkey, with an emphasis on both entry and exit rates. Methods: The study analyzes data from the Turkish Statistical Institute's "Survey on Income and Living Conditions" from 2018 to 2021 using dynamic probit models. This large dataset, which gives a detailed picture of socioeconomic situations, helps in properly understanding the complex aspects influencing poverty rates. Findings: The analysis reveals significant poverty persistence in Turkey, influenced by factors such as gender, marital status, employment, and health conditions. According to the research, these variables frequently interact, forming a complex structure that maintains poverty throughout the country. Implications: The findings necessitate targeted interventions to address persistent poverty, considering the diverse influencing factors. This could lead to a reduction in poverty rates and improved socioeconomic conditions for individuals. Originality/Value: This study offers a unique perspective on poverty dynamics in Turkey, focusing on both entry and exit rates. It provides valuable insights for those formulating policies or strategies aimed at poverty reduction, emphasizing the need for a comprehensive approach to poverty alleviation.
... Estimating vulnerability is a crucial aspect as it forecasts the households that may remain poor, those that may escape poverty, those that may fall into poverty, and those that may remain non-poor. This prediction is particularly helpful in identifying the most deserving beneficiaries for social protection programmes, as past studies have shown errors in beneficiary inclusion and exclusion, leading to deserving candidates being left out of the scheme (Balani, 2013;Taneja & Taneja, 2016;Boyanagari & Boyanagari, 2019). Second, the current research examines vulnerability at the sub-national level, generating insights for poverty reduction at the disaggregated level. ...
Shocks are responsible for significant setbacks in development progress because it persistently inflicts a negative impact on livelihood. As a result, those who are poor continue to be poor, and those who are not poor become vulnerable to falling into poverty. The analysis of the link between risks and vulnerability to poverty in developing countries is a major focus of development policy to ensure the resilience of vulnerable households. However, there is a lack of research in India that examines the potential impact of shocks on poverty and future deprivation. The objective of this study is to estimate vulnerability to multidimensional poverty (VMDP) and analyse the factors that lead to loss of well-being after experiencing adverse events in rural Odisha. Using survey data from 479 households, the study first estimated multidimensional poverty (MDP), adopting a counting approach. Secondly, the estimation of VMDP is performed using the three-step feasible generalised least squares approach. The results show that 55% of the surveyed households are vulnerable to MDP in rural Odisha. It is also observed that 35% of currently poor households are likely to remain poor and 20% of non-poor households are at risk of sliding into poverty. The study suggests that poverty alleviation policies should cover not just those in poverty today but also those at risk of becoming poor in the near future.
... The selection of a case study is based on the availability of household surveys that contain data on income poverty as consumption or expenditure modules (see Chen & Ravallion, 2008 for coverage of national data sets and data on multidimensional poverty as health indicators). 8 The proportion of multidimensional poor among those who are monetary poor is only between 10 and 50% (Alkire & Fang, 2019;Baulch & Masset, 2003;Günther & Klasen, 2009;Perry, 2002;Roelen, 2017;Tran et al., 2015). ...
For decades, international communities have developed poverty measures to inform needs assessment and aid allocation. Building on these efforts, this paper examines the discrepancies between global poverty measures and brings that analysis to bear on identifying the salient dimensions of poverty. First, a comparison is made between the monetary and capability approaches to poverty and identifies comparable indices: the poverty headcount ratio (P0) and the multidimensional poverty headcount ratio (H), respectively. The paper then describes the degree of discrepancy between P0 and H for 102 developing countries from 2010 to 2019, synthesizing data from the Multidimensional Poverty Index, the World Development Indicators, and OECD aid activity. Next, the position of countries are analyzed with respect to the fitted line of the two measures, classifying countries into either income-poor or capability-poor categories. Findings suggest that countries such as Pakistan and Ethiopia, for example, experience capability poverty while Malawi and Mozambique experience income poverty. Finally, I examine whether sector aid composition corresponds to a country’s relative income and poverty status, finding that capability-poor countries receive marginally higher social sectoral aid compared to economic sector aid. This study suggests that the discrepancies between measures of international poverty can be used to target, monitor, and evaluate global aid distribution. doi.org/10.1007/s11205-021-02866-6
... From this perspective, income is treated as one of the dimensions for calculating poverty and no longer as the only relevant deprivation to define who is poor. The need for this advancement occurs for two main reasons, which are: First, the high inclusion and exclusion errors between individuals who are deprived in relation to income and those deprived in other dimensions of well-being (Baulch and Masset, 2003;Ruggeri Laderchi et al., 2003). The second reason is the fact that not all the monetary attributes can be observed, due to lack or imperfections in the markets, as is observed in underdeveloped countries (Bourguignon and Chakravarty, 2003). ...
Purpose
This article aims to analyse the spatial and temporal evolution of multidimensional poverty in Brazil's North Region and its relationship with territorial, economic and population dynamics.
Design/methodology/approach
A multidimensional poverty index (MPI) was calculated using the Alkire-Foster method and a spatial econometric model was estimated. The data come from population censuses conducted by the Brazilian Institute of Geography and Statistics (IBGE) for the years 1991, 2000 and 2010.
Findings
The results show a decrease in multidimensional poverty over the period analysed. However, they show this reduction occurred in a heterogeneous way in time and space, with emphasis on microregions in which, despite a reduction in the rate, the percentage of the population considered multidimensionally poor remained high during the 30 years of the study.
Research limitations/implications
The quality of available data.
Practical implications
It is possible to point out that public policies focused on improving infrastructure in medium-sized locations tend to have two positive effects: first, making production and consumption more accessible and sustainable for local communities, given that currently the cost of transport and logistics are factors that hinder socioeconomic development; second, to reduce the pressure of demand that this population of small and medium-sized locations exerts on public services currently offered only in larger locations. Although the logic of concentrating most public services in the largest cities makes sense in terms of economic efficiency, the particularities of the northern region and the recognition of its environmental importance point to the need for incentives for more spatially distributed economic activity.
Social implications
From the paper results, it is possible to think about more local public policies which are able to improve people's lifes without to damage the environment.
Originality/value
This is the first study on multidimensional poverty that covers the entire North region of Brazil (Amazon region) and that contemplates both the temporal and spatial dynamics of poverty.
Peer review
The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-11-2021-0699 .
... Compared to paneldata sets created and used in previous studies, it is smaller in terms of the number of households but covers a longer period (four waves) due to attrition between waves. Previous studies that created panel-data sets from the VHLSS, including Baulch and Masset (2003); Haughton and Vijverberg (2002);and McCaig (2009), showed that attrition was mostly at random, and, hence, attrition bias is negligible. ...
The current study uses the Generalised Method of Moments to examine the dynamic relationship between access to microfinance and poverty reduction. The panel‐data set is constructed from the Vietnam Household Living Standard Surveys during 2002–2008. The results show that access to microfinance in the previous period significantly improves per adult‐equivalent income and consumption of the households in the current period. However, previous participation in microfinance programs is not sufficient to help households escape from poverty. In addition, both private and government bank loans significantly help improve household per adult‐equivalent income, consumption, and poverty rates. The empirical results imply that a larger loan size, diversified loans for different consumption purposes, and improvement in infrastructure and facilities, especially in rural areas, are believed to help reduce poverty.
... Our analysis uses the most recent VHLSS dataset: 2004 to 2014. To measure income, we use household per capita expenditure (PCE), which has been widely used as an appropriate proxy (Baulch and Masset, 2003;Minot et al., 2006;Trinh Thi et al., 2018). Per capita expenditure serves as a useful income proxy as it avoids the issues of underreported income (Deaton, 1997) and income volatility (Bhalotra and Attfield, 1998). ...
Refrigeration transforms food systems. The global integrated refrigerated supply chain, or “cold chain,” impacts numerous sustainability outcomes, from energy consumption and greenhouse gas (GHG) emissions, to consumer diets and producer behavior. This dissertation seeks to understand refrigeration’s systems-level sustainability implications: first, how this technology influences environmental outcomes and human behavior, but also how adoption and use patterns feed back into how this technology impacts its users and the broader environment. This dissertation begins by building an understanding of the current cold chain’s influence on sustainability. Chapter 2 reviews the existing literature on refrigeration, finding the cold chain remarkably understudied in the sustainability literature. One key environmental tension identified is the trade-off between GHG emissions added from cold chain operation, and the cold chain’s ability to decrease food loss. Chapter 3 compares changes in pre-retail GHG emissions from cold chain operation and food loss rate changes when introducing a refrigerated supply chain into the Sub-Saharan African food system. This study finds cold chain introduction resulting in a net GHG increase of 10% in a scenario reflecting a North American development scenario and 2% in a European development scenario. This analysis also models refrigeration’s influence on food demand and agricultural production: finding an increase of 10% over the baseline when modeling a North American diet, or a 15% reduction with a European diet. Given the substantial influence diet has on food system sustainability, Chapter 4 explores the particular role that refrigeration plays in consumer diet. This study moves beyond Chapter 3’s assumption of convergence to Western diets in development, using data from the Vietnam Household Living Standards Survey and a regression model to isolate the effects of refrigeration from socio-economic variables. In this case study, household refrigerator ownership is statistically significantly associated with lower consumption of starchy staple foods, nuts and seeds, and pulses; and higher consumption of meat and dairy. Having investigated how refrigeration currently influences emissions and diet, this dissertation’s final chapters examine improvements and innovations in refrigerated supply chains. Motivated by a Chapter 3 finding that the cold chain adds more pre-retail emissions than it saves through food loss reduction, Chapter 5 assesses interventions to decrease cold chain emissions. This study builds a more-refined, process-based cold chain model, reflecting a fully-developed refrigerated food supply chain. The largest decreases result from decarbonized electricity, improved supermarket refrigeration systems, or reductions in pre-consumer food loss. The largest emissions reduction from a single intervention is 1.20 kg CO2e/kg (39%) for frozen fish supplied from using decarbonized electricity, and the largest from a tested combination is 1.61 kg CO2e/kg frozen fish from combining decarbonized electricity with a CO2NH3 supermarket refrigeration system. The final chapter assesses the environmental improvements offered by an innovation in the cold chain: meal kit services. Meal kits are pre-portioned ingredients delivered to consumers, circumventing brick-and-mortar retailing. This study finds average grocery store meal GHG emissions exceeding those for an equivalent meal kit by 33%. Reductions in food waste emissions are found to exceed emissions missions added through extra packaging, and that direct-to-consumer delivery provides additional emissions reductions. This dissertation examines several key sustainability implications of cold chain expansion and innovation. The complex interactions between cold chain technology and consumer behavior underscores the need to take a systems perspective when examining sustainability outcomes from future food supply chain developments.
... Our list of household level control variables account for household head's age, average age of all members of household, sex of household head, household size with number of adult and children. These households' socio-economic characteristics are mostly included in household welfare studies in Vietnam (Baulch & Masset, 2003;Glewwe, 2004;and Imai et al., 2011) and other developing countries (in Thailand: Kakwani, 2000); in Malaysia: Mok et al., 2007); in Peru: Calvo, 2008). Our interest parameters are ethnic and social capital variables at household level, community level, survey-wave level and cross-level interaction variables. ...
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.
... Further, body mass index (BMI) is taken as a proxy of nutrition, and a household is considered to be deprived in terms of nutrition if any adult has less than 18 BMI. This lower cut-off, as compared to 18.5 (Alkire & Santos, 2014), was proposed by Himes (2000) and James, Ferro-Luzzi, and Waterlow (1988) and was applied by Baulch and Masset (2003). ...
This study examined the determinants of unidimensional and multidimensional poverty among the farm households of rural India, using the data of India Human Development Surveys conducted in 2004–2005 and 2011–2012. We found a significant reduction in poverty among these households over this period. However, this reduction was not uniform across different sub‐groups of the farm households. Our findings confirm that the important factors of poverty dynamics in India are educational attainment, number of household members, and caste. We observed that caste and household size considerably impacted the unidimensional poverty significantly, but not the multidimensional poverty, which was affected more by the education level of the heads of household. The study concludes that unidimensional poverty significantly matters for multidimensional poverty and vice versa in terms of determining poverty dynamics. Hence, target‐based interventions in education, nutrition, and better access to water and sanitation, particularly to lower social groups (schedule classes, scheduled tribes, and other backward classes) help in reducing multidimensional poverty in rural India.
... Following many papers in the literature on diets using VHLSS, other socio-economic household variables are considered. To measure income, we use (monthly) per capita expenditure (PCE), which has been widely employed as an appropriate proxy (Baulch and Masset, 2003;Minot et al., 2006;Trinh et al., 2018). Per capita expenditure serves as a useful income proxy as it avoids the issues of underreported income (Deaton, 1997) and income volatility (Bhalotra and Attfield, 1998). ...
Refrigerator ownership accompanies socio-economic development, with the potential to change human diets. Household refrigerator ownership in Vietnam has increased from 13% to 59% between 2004-2014. This study estimates changes in food consumption and diet linkages with household refrigerator ownership in Vietnam, while controlling for socioeconomic variables. We use a two-step instrumental variable regression model on two panels of the Vietnam Household Living Standards Survey covering 2004-2014. Our study finds refrigerator ownership to be significantly associated with decreases in per capita calorie intake over both periods. Refrigerator ownership may be connected with households substituting lower-nutrient foods with higher ones, with substantial decreases in starchy staple food consumption connected with refrigerator ownership in both panels. For both periods, refrigerator ownership is significantly connected with increased dairy consumption, potentially reflecting the refrigerator increasing a household’s ability to store dairy products.
... Buffett's economic condition as good. It is uncertain how to decide what a poor economic condition is: some economists have given considerable thought to characterizations of poverty (see, e.g.,Sen 1976;Baulch and Masset 2003;Alkire, Foster, Seth, Santos, Roche, and Ballon 2015). Perhaps we should consult with them. ...
This paper presents a critique of David Benatar’s arguments on the badness of all human lives. I argue that even if Benatar is right that there is an asymmetry between the good and the bad in life so that each “unit” of bad is indeed more effective than each “unit” of good, lives in which there is a lot of good and only little bad are still overall good. Even if there are more unfulfilled than fulfilled desires in life, a distinction should be drawn between desires to fulfill important goals and desires to fulfill trivial ones, and Benatar’s claim is untrue of the former. Benatar’s claim that we cannot really know that the quality of our own lives is good is problematic, but even if it were true, it would not show that we cannot estimate correctly the quality of other people’s lives, which is the point at issue.
... Significant progress in the monetary poverty reduction has been achieved in Bangladesh, i.e., the poverty rate declined from 57% in 1991 to 24.3% in 2016 (World Bank, 2017). 1 However, less progress has been made in other dimensions of poverty, such as anthropometric status, morbidity, mortality and education, which are only weakly correlated with growth in income (Baulch & Masset, 2003;G€ unther & Klasen, 2009). Especially improvements in the nutritional status of the poor take more time to achieve (Haddad et al., 2003;Waibel & Hohfeld, 2016). ...
This study examines the fish consumption pattern of households in Bangladesh. We use data of the national Household Income and Expenditure Survey (HIES) to develop a demand model disaggregated by fish types and income groups. We apply a two-step censored regression model to estimate price and income elasticities. Results show that poor and non-poor households consume similar types of fish. However, poor households rely more on fish as their primary source of animal protein. As income increases, the fish consumption of the poor rises more than for the non-poor. Additionally, fish price increase will lead to a deterioration of their nutritional conditions. In terms of fish species, the study finds that carps, pangasius, barbs and tilapia, mainly sourced from aquaculture, and small catfish, mainly sourced from capture fisheries, are the most frequently consumed fish species for the households in Bangladesh. The paper also finds that aquaculture has good potential to compensate for the decline of fish supply from inland capture fisheries.
... Meanwhile, multidimensional poverty has received more attention. A study covering the period 1993-1998 by Baulch and Masset (2003) found a modest correlation between monetary and nutrition poverties, at least as far as chronic poverty is concerned. Nutrition poverty showed strong persistence, and remote urban areas remained at high risk of both poverty types over time. ...
We investigate the evolution of multidimensional inequality of well-being in Vietnam in the period 2002–2012 using household survey data. Our study focuses on four crucial dimensions of human welfare: consumption, education, health and housing. We measure inequality by means of the multidimensional Atkinson index, which belongs to the Atkinson family of relative inequality indices. The choice of the values of two crucial parameters, with respect to the aversion to inequality on the one hand and the degree of substitutability between dimensions on the other hand, has a significant influence on the perceived trends of inequality. We consider different combinations of dimensions (two, three and four dimensions) and a wide variety of values of the parameters, with the aim of arriving at a robust understanding of the extent of inequality in Vietnam. Our results suggest that the level of multidimensional inequality in Vietnam has decreased, albeit that this is not the case for all combinations of the parameter values. Our study shows that looking at multidimensional rather than one-dimensional inequality leads to a richer understanding of the evolution of inequality, and indicates that it is important to be aware of the influence of value judgments on the assessment of inequality.
... Poverty is not a static state: poor today may or may not be poor tomorrow, some of the non-poor today may end up being poor tomorrow, and many are stuck in poverty over longer periods (Baulch and Masset 2003). In developing countries, enormous research is carried out on poverty trends by using cross-sectional analysis, but less attention is paid to its dynamics-chronic or transitory poverty. ...
The relationship between growth and poverty is complex in Pakistan, where economic growth has not always been translated into poverty reduction. In the present work, three waves of a panel/longitudinal household survey, conducted between 2001 and 2010, were used to analyze poverty trajectories as well as the relationship between their patterns and economic growth. The findings from the panel survey reveal that more than half of the rural population remained in the state of poverty at least for one period. Poverty is transient in nature, as moving into and out of poverty is a common phenomenon in rural Pakistan. The high-growth period of 2001–2004 was not pro-poor, whereas the low-growth period of 2005–2010 was pro-poor despite the political and economic challenges. The findings reveal that policy interventions for the chronically poor may not be the same as those for the impoverished and transitory poor.
... most of the concerns of well-being (Arif, 2000;Baulch & Masset, 2003;Bhagwati, 1988). However, a recent view of the problem has criticized the traditional estimation methods, which portray an incomplete picture. ...
Dynamics of poverty has become a debatable issue and has emerged as one of the most common socioeconomic challenge across the developing world. The present research examines the issue of poverty in the multidimensional spectrum across the agro-climatic zones in Punjab Province of Pakistan on the basis of Pakistan Social and Living Standard Management (PSLM)/Household Integrated Economic Survey (HIES) data (1998–1999 to 2013–2014). The study employed Alkire and Foster methodology and analyzed that the dynamics of multidimensional poverty across agro-climatic zones exhibits mixed trends. Overall estimates designate a significant decline over the decade, whereas slower declining pace was mainly attributed to the wider deprivation of different socioeconomic spheres of well-being.
... . One approach focuses on the duration of poverty and defines a chronically poor household as one which shows per capita levels of income or consumption at or below the poverty line at each, or most, observation points [Baulch and Hoddinott, 2000;Baulch and Masset, 2003 ]. The chronic poor are identified as those persistently below the poverty line. ...
There is an emerging consensus around the view that social protection provides an effective response to poverty and vulnerability in developing countries.1 This is finding expression in the growing number of national governments adopting social protection strategies, and in the rapidly expanding set of policies and programmes being implemented in developing countries.2 There is also rising interest in social protection among development researchers, with social protection being viewed increasingly as the emerging paradigm for social policy in developing countries.
... The reasons are mainly reflected in two aspects. On the one hand, existing studies have shown that there are often high tolerance and exclusion errors between people with low incomes and those deprived of other aspects of human well-being (Baulch and Maasset 2003; Ruggeri Laderchi et al. 2003) [3] [4]. On the other hand, the disadvantage of the monetary-metric income approach is that not all non-monetary characteristics can be directly measured. ...
... However, in the case of Vietnam, several previous studies using VLSS and VHLSS have proven that the attrition rate is rather low and random (e.g. Baulch & Masset (2003) and Gunther & Harttgen (2009) for VLSS; Roelen (2013) for VHLSS). Another potential problem with VHLSS is the changing household composition and size (Kamanou & Morduch, 2002). ...
... Family income is negatively associated with material hardship, which is consistent with the literature, according to which the variance of material hardship can only be partially explained by the variance of family income (Baulch & Masset, 2003;Douglas-Hall, Chau, & Koball, 2008;Gershoff et al., 2007;Lu, Palmer, Song, Lennon, & Aber, 2004). Family income and material hardship are found to be associated with parental investment, which is also as expected. ...
Against today’s global backdrop where financial responsibility has been transferred from the government to individuals, financial literacy, as a key component of financial capacity, could be an effective strategy to escape from lifecourse poverty. Compared with young adults, research demonstrates that financial literacy among adolescents is of greater importance. The present study fills the theoretical gap to measure the financial literacy of Hong Kong Chinese adolescents by validated Financial Fitness for Life (FFFL) Test, and explore its development by fitting data collected in Hong Kong into a model of socialization and a model of general poverty and comparing their ability to explain the link between family income and the financial literacy of adolescents. The results of the model of socialization show that parental financial behavior can explain the link between family income and the financial literacy of adolescents. The results of the model of general poverty are associated with better influential power, showing that the same link can be mediated by both parental stress and positive parenting behavior. The findings of this study specify the critical role of parents, offer specific entry points for interventions by policymakers and educators, and provide parents with pathways to positively influence the development of financial literacy among adolescents.
... Also, previous studies using panel data from the VLHSS compared the means and distribution of income and other observables between the cross-sectional samples and panel sub-sample and found no evidence of selective attrition (Imbert, 2011, Oostendorp et al., 2009Ngyuen et al., 2013). Furthermore, multiple studies tested and used the panel component of the VHLSS data and found no attrition bias and thus assumed an unbiased sample (Baulch and Masset, 2003;Gunther and Klasen, 2009;Imbert, 2011;Oostendorp et al., 2009;Sanders and Brown, 2014). ...
Geographic isolation and spatial inequality are growing issues for most countries. However, distance-demolishing technologies have been proposed as a solution of overcoming geographic barriers associated with geographic penalties. This research uses the rapid and widespread adoption of inexpensive motorcycles in Vietnam as a case study of how distance-demolishing technologies can improve household well-being. Utilising panel data from the 2004, 2006 and 2008 Vietnamese Household Living Standard Surveys, this research uses propensity score matching to isolate the effect that the introduction of a motorcycle has on household income. Our results show that new motorcycle ownership reduces spatial isolation penalties and significantly improves household well-being in Vietnam. In addition, marginalised populations, such as female-headed households and rural households, receive relatively larger returns from a new motorcycle. Our findings suggest that distance-demolishing technologies can contribute to the reduction of spatial inequality by helping households overcome both geographic and social barriers.
... As principais razões para essa evolução centram-se no fato de que muitos indivíduos são pobres em função da baixa renda, mas também porque podem sofrer privações de outras condições importantes para o bem-estar humano (BAULCH; MASSET, 2003). Outro fator relevante é que a abordagem de pobreza apenas pela ótica da renda pode incluir imprecisões, pois nem todos atributos não monetários podem ser medidos diretamente, principalmente nos países menos desenvolvidos (BOURGUIGNON;CHAKRAVARTY, 2003). ...
The study aimed to analyze the level of absolute and multidimensional poverty of the 27 Brazilian states through the application of the Fuzzy Sets Theory (TFS), considering the following dimensions: literacy, infant mortality, housing conditions and income. As a result it was obtained that the states located in the northern region have the lowest levels of multidimensional poverty, while the states of the Northeast and Southeast have the highest levels. Moreover, it was observed that there are important differences in the results of poverty analysis according to the indicator used, one-dimensional (income) or multidimensional, and the dimensions that had the greatest impact on IFPM were infant mortality and income. Thus, it can be inferred that to assess poverty only from the perspective of income is an incomplete method that leaves out important information about the universe in which different individuals are inserted.
... Family income is negatively associated with material hardship, which is consistent with the literature, according to which the variance of material hardship can only be partially explained by the variance of family income (Baulch & Masset, 2003;Douglas-Hall, Chau, & Koball, 2008;Gershoff et al., 2007;Lu, Palmer, Song, Lennon, & Aber, 2004). Family income and material hardship are found to be associated with parental investment, which is also as expected. ...
Against today’s global backdrop where financial responsibility has been transferred from the government to individuals, financial literacy, as a key component of financial capacity, could be an effective strategy to escape from lifecourse poverty. Compared with young adults, research demonstrates that financial literacy among adolescents is of greater importance. The present study fills the theoretical gap to measure the financial literacy of Hong Kong Chinese adolescents by validated Financial Fitness for Life (FFFL) Test, and explore its development by fitting data collected in Hong Kong into a model of socialization and a model of general poverty and comparing their ability to explain the link between family income and the financial literacy of adolescents. The results of the model of socialization show that parental financial behavior can explain the link between family income and the financial literacy of adolescents. The results of the model of general poverty are associated with better influential power, showing that the same link can be mediated by both parental stress and positive parenting behavior. The findings of this study specify the critical role of parents, offer specific entry points for interventions by policymakers and educators, and provide parents with pathways to positively influence the development of financial literacy among adolescents.
... Tanto a nivel internacional como nacional se encuentra que la asociación entre indicadores de pobreza monetaria y multidimensional es débil, existen importantes desajustes entre ambos (a nivel internacional ver, por ejemplo, Alkire y Santos 2010; para Uruguay, Arim y Vigorito, 2007;Ministerio de Desarrollo Social, 2013; entre otros). Asimismo, se ha registrado que la dinámica de ambos indicadores difiere: las carencias no monetarias tienden a ser más persistentes en el tiempo (ver, por ejemplo, Baulch y Masset, 2003, para Vietnam y Castillo y Colombo, 2014, para Uruguay). Alkire y Roche (2011) estiman indicadores de pobreza multidimensional para niños y niñas en Bangladesh en un período de diez años, lo que fundamenta la importancia de comprender los cambios sucedidos en la pobreza infantil en el tiempo y permite ver la simultaneidad de las privaciones, lo que no es posible con el conteo de pobreza. ...
Based on the methodology proposed by Alkire and Foster, the objective of this paper is to estimate a multidimensional poverty index for children in Uruguay between 2006 and 2014. This allows the analysis of the reactions of non-monetary dimensions of wellbeing, in the context of an important increase of household income. The main results show a smaller reduction of the index compared to the monetary poverty, and stagnation in the last two years. This trend is largely explained by the dimensions of comfort and education.
... For example, one can perform an analysis to see whether chronic poverty has distinctive components that may comprise 'poverty traps'. Empirically, Baulch and Masset (2003) show that low-performance in monetary indicators can be less persistent than non-monetary indicators (e.g. child malnutrition or school attendance), which could lead to underestimation of the prevalence and intensity of chronic poverty. ...
This paper adopts a new approach to the measurement of chronic multidimensional poverty. It relies on the counting approach of Alkire and Foster (2011) for the measurement of multidimensional poverty in each time period, and then on the duration approach of Foster (2009) for the measurement of multidimensional poverty persistence across time. The proposed indices are sensitive both to (i) the share of dimensions in which people are deprived and (ii) the duration of their multidimensional poverty experience. A related set of indices is proposed to measure transient poverty. An empirical illustration is provided for Chile between 1996 and 2006.
... Also for the case of Vietnam, Baulch and Masset (2003) conducted a study to investigate whether the monetary and non-monetary indicators of poverty affect chronic poverty in the same fashion. They defined chronic poverty as that which occurs when an individual is poor, suffers from malnutrition and stunting or is not in school in the two waves of the panel. ...
Purpose
This paper aims to examine the mismatch between multidimensional deprivation and monetary poverty in identifying the poor in Egypt and investigates their determinants empirically.
Design/methodology/approach
The paper uses the Alkire-Foster multidimensional poverty measurement method using data from Egypt’s 2017/2018 Household Income, Expenditure and Consumption Survey (HIECS 2017/2018). Using a logistic regression model, the paper assesses the empirical relationship between multidimensional and monetary poverty and their determinants at the aggregate level and by dimension.
Findings
The paper demonstrates a significant mismatch between multidimensional and monetary poverty measures, underscoring their complementary nature. Statistics indicate that both measures overlap in classifying 35.81% of Egyptians, whereas monetary poverty ignores 63.12% of multidimensionally poor in at least one dimension. Regression estimates show a significant moderate negative association between expenditure per capita and multidimensional poverty and its dimensions. Moreover, they show that household head’s gender, age, education attainment, marital status, job proficiency, household size and location affect poverty mismatch and match in Egypt.
Practical implications
This paper offers Egyptian policymakers the multidimensional poverty index that enables more efficient designing and targeting of poverty alleviation programs and assessing current poverty alleviation programs to modify them if needed.
Originality/value
To the best of the authors’ knowledge, this study is the first to examine the mismatch between both poverty measures in Egypt, using the recent full data set of HIECS 2017/2018. This paper confirms that depending only on monetary measures can send inaccurate insights for crafting effective social policies. Also, it offers policymakers a comprehensive insight into the country’s poverty landscape, which enable more efficient design, targeting of poverty alleviation programs and monitoring their effectiveness.
Purpose
The purpose of this study is to evaluate the efficiency of the relative performances of Mother’s canteen across the regions of Tamil Nadu and find out the determinants of inefficiencies in the scheme.
Design/methodology/approach
An untargeted food security scheme called Amma (Mother's) canteen was started in Tamil Nadu, India, with an aim to provide the urban poor with hygienic and healthy food at an affordable price. Along with secondary data, interviews were conducted to understand the operational details of Mother's canteen. Data envelopment analysis (DEA) was used to find the relative efficiency of the scheme operated by nine corporations.
Findings
Based on the daily expenditure, number of meals served and revenue, seven of nine corporations were found to be inefficient. Further, sensitivity analyses found that among six procurement variables, procurement (quantity and price) of black gram and cooking oil were determinants of inefficiency.
Research limitations/implications
As an untargeted scheme, the cost of delivering service-based evaluation was used for performance evaluation. Policymakers could use centralized procurement instead of open market procurement at the corporation level and standardized ingredients' usage (quantity) to further reduce the cost of the food security scheme.
Practical implications
The proposed DEA model may be used by policymakers to empirically evaluate the food security scheme's delivery effectiveness across various corporations in a region. Inefficient branches are identified here with empirical support for further performance improvement changes.
Originality/value
There are limited number of studies evaluating untargeted schemes. This paper presents the challenges of evaluating an untargeted scheme which allows self-selection of beneficiaries. The outcome of this study will help in identifying inefficient corporations, and further, improve the performance and cost of delivering untargeted food security scheme.
Although the number of studies on poverty dynamics in Indonesia is growing, the findings remain inconclusive. This study aims to reexamine the poverty dynamics in Indonesia by using three main approaches: the spell approach, the component approach, and the equally distributed equivalent (EDE) poverty gap approach. The study employed household panel data from the National Socio-Economic Survey of Indonesia (Susenas) 2008 and 2010 and also the FGT index. The analysis shows that the spell approach tends to underestimate chronic poverty (households remain poor in two consecutive periods of observations). It estimates that 6.7% of the total households experienced chronic poverty. Meanwhile, the conclusion of poverty dynamics under the component approach is sensitive to the choice of poverty parameter of the FGT index. By employing the poverty parameter of α = 0, around 11.07% of total households were classified as chronically poor (average expenditure below the poverty lines). However, applying the poverty gap (α = 1) and poverty severity (α = 2) indicates that the chronic component reached 63.16% and 54.15% of the total poverty, respectively. Likewise, the EDE poverty gap approach also suggests that poverty in Indonesia is mainly chronic at 92% of the total component of poverty. The high percentage of chronic poverty is contributed by the significant cost of inequality.
The measurement of poverty has been under constant scrutiny from academics and policy-makers. For many years, income (or consumption/expenditures) has been used as a proxy to understand and measure poverty. Nonetheless, over the last decades, increasingly theoretical and methodological discussions have shifted the attention to what is now called Multidimensional Poverty. Starting with the seminal works of Peter Townsend (1979), Amartya Sen (1976) and John Rawls (1971), social scientists have devised different approaches to understanding poverty without relying on income. Some of these are the basic needs approach, material deprivation, subjective well-being, and the capability approach.
Since 2010, the Human Development Report (HDR), the publication containing the Human Development Index, has included a ranking of more than 100 developing countries, in the form of an index, referred to as the Multidimensional Poverty (MPI). The publication of the HDR not only sparked a debate about the interpretation of such rankings and comparisons of poverty between countries but also about the measurement of poverty in general (See Decanq and Lugo (2010), Ferreira and Lugo (2013), Ravallion (2011) and Alkire (2011)). The ranking published in the HDR is constructed on the basis of the most widely used counting index of multidimensional poverty, the Adjusted
Headcount Ratio ( in this thesis AHR) of the Alkire-Foster (AF) family of indices.
Drawing on three-wave panel data from the Vietnam Housing Living Standard Surveys (VHLSS) 2010, 2012, and 2014 and employing a fuzzy method, this paper estimates chronic and transient poverty across multiple dimensions (income, education, health, housing, basic services, durable assets, economic status) in Vietnam. Using standard deviation as a measure of risk, this study further defines vulnerability as a probability for becoming poor and estimates vulnerability to poverty from the stochastic variation of expected deprivation within a defined interval. We further apply the method of multilevel analysis to assess the deprivation of households and distinguish vulnerability as influenced by idiosyncratic (household-specific level) and covariate (province level) shocks. It is observed that while the number of chronic poor in all dimensions is quite low, the proportion of chronic poor in the housing dimension is the highest (around 5 per cent over the applicable years nationwide). Regional variation in non-monetary dimensions of poverty is substantial and clearly distinct from monetary poverty. We show that there are more multidimensionally poor households that are vulnerable to idiosyncratic shocks than to covariate shocks, and the proportion of vulnerable households (to covariate shocks) in the housing dimension is significantly greater than that in other dimensions. Almost all covariates of household and province are significantly different between vulnerable and non-vulnerable groups across the multiple dimensions of poverty other than health. Our findings suggest an urgent need for policy attention on the explicit nature of vulnerability and on the many dimensions of poverty in specific regions, and to look beyond the current official monetary-based approach.
Despite significant progress in poverty measurement, few studies have undertaken an in-depth comparison of monetary and multidimensional measures in the context of low-income countries and fewer still in Sub-Saharan Africa. Yet the differences can be particularly consequential in these settings. We address this gap by applying a distinct analytical strategy to the case of Rwanda. Using data from two waves of the Rwandan Integrated Household Living Conditions Survey, we combine comparing poverty rates cross-sectionally and over time, examining the overlaps and differences in the two measures, investigating poverty rates within population sub-groups, and estimating several statistical models to assess the differences between the two measures in identifying poverty risk factors. We find that using a monetary measure alone does not capture high incidence of multidimensional poverty in both waves, that it is possible to be multidimensional poor without being monetary poor, and that using a monetary measure alone overlooks significant change in multidimensional poverty over time. The two measures also differ in which poverty risk factors they put emphasis on. Relying only on monetary measures in low-income sub-Saharan Africa can send inaccurate signals to policymakers regarding the optimal design of social policies as well as monitoring their effectiveness.
Este artículo intenta develar la relación entre desigualdad-pobreza a partir de la exposición de elementos empíricos y teóricos, que permite, por un lado, plantear que la aproximación a ambos fenómenos ha sido generalmente aislada, y por otro, presentar una propuesta que muestra la importancia de reconocer la relación entre desigualdad-pobreza para mejorar el bienestar de la sociedad. Para validar la propuesta se hizo una simulación en la que se involucró la instrumentalización del coeficiente de Gini y las líneas de pobreza, y que mostró como resultado la existencia de la relación y que al aplicar mecanismos de redistribución, como limitar el umbral de tolerancia de la desigualdad de ingresos, se reduce la pobreza. Por ende, es imprescindible defender el derecho a vivir en una sociedad más igualitaria, puesto que la pobreza persiste, fundamentalmente, por la desigualdad.
In this chapter, Clark and Hodgett develop a framework and methodology for investigating human well-being in multicultural settings. They consider the various insights that the capability, livelihoods and chronic poverty approaches can offer before building on them to develop an ‘Integrated Capability Approach’ (ICF) that seeks to combine their virtues. Like the capability approach, the ICF is a flexible framework that can be applied to different issues through a variety of participatory methods. The ICF is used to develop a series of open-ended fieldwork questions partly inspired by Clark’s studies of human values. These questions are designed to explore the values, expectations and actual experiences of different people and ethnic groups. To illustrate one way of making the approach operational, the fieldwork questions are applied through 15 ethnographic interviews conducted in Canada. Although no attempt is made to draw policy conclusions (given the limited number of interviews), the fieldwork results do illustrate several unique features of the ICF that help make it a highly effective tool for guiding policy and practice. Amongst other things, the ICF embraces multidimensionality, allows for cultural diversity and difference, recognizes that well-being is a dynamic process and encourages more pragmatic and efficient policy responses.
Investigation of poverty from a dynamic perspective standpoint is highly likely to provide helpful insights for poverty reduction policies. This requires information on panel data on different dimensions of well-being of the population. This chapter aims to analyze some approaches that propose or develop specific indices of lifetime poverty in a multidimensional framework. All such indices may be regarded as indices of intertemporal capability deprivation. The chapter extends the one-dimensional block approach advocated by Bossert and his team to a multidimensional framework. It also presents a comparative analysis with some one-dimensional variants of this approach, when it is adapted to the unidimensional case. Essentials to the approach are the individual poverty profiles across periods. It is assumed that individual poverty indicators are observed in each of the periods under consideration. The chapter then details intertemporal poverty orderings explored by Bresson and Duclos.
Using household data for rural northern Vietnam between 1993 and 2014, we find that the ethnic minority group continued to lag behind the majority group in various development indicators despite the overall improvement in living standards. Our regression and decomposition analyses show that the structural differences between the two groups are an important cause of persistent development gap. However, the nature of structural differences changed over time and no single source of structural difference explains the persistent gap. We argue that more minority-appropriate policies are needed to lift poor minority households out of poverty further and reduce the development gap.
Those in chronic poverty are defined as having a low chance of improving their situation. However, there is currently no consensus on what the critical time period for being labelled as ‘chronically poor’ is for multidimensional poverty. Longitudinal analysis of Waves 1–12 (2001–2012) of the nationally representative Household, Income and Labour Dynamics in Australia dataset was undertaken to determine the length of time an individual had to be in multidimensional poverty between Waves 1 (2001) and 11 (2011) for to have a significantly higher chance of still being in poverty in Wave 12 (2012). Multidimensional poverty was defined as having low income and poor health status (measured by the SF-36 Physical and Mental Component Summary Scores), or low income and an insufficient level of education attainment. This study has demonstrated that being in poverty for four consecutive years is the threshold for being chronically poor; being in poverty for four or more consecutive years significantly increases an individual’s chance of remaining in poverty.
With disaster risk continuing to increase in many regions, action is needed to reverse the trend.
Next year the following three key policy frameworks will be agreed on: the post-2015 agreement on disaster risk reduction (DRR); the Sustainable Development Goals (SDGs) – a way of prioritising development actions; and an international agreement on climate change – to establish global action on tackling climate change beyond 2020.
Creating a unified approach to these three agreements is the only plausible way to ensure disaster risk reduction (DRR) is given high priority. The report recommends that a common target and indicator set to measure and monitor disaster risks and losses should be agreed on and implemented.
Based on disaster risk data sets and further evidence from recent history, the report shows what this agreed approach could look like, what the challenges may be, and most importantly offers ten proposals for this global monitoring framework on DRR. With negotiations for the post 2015 agreement on DRR underway the report will play a significant role in influencing the wider agenda.
This book is the first of three volumes. Every year millions of people are losing their lives around the world, undeterred by the widespread opulence and remarkably higher per capita income, because of sporadic famines, endemic undernourishment, and destitution; let alone those hundreds of millions leading lives of never-ending vulnerability and want. This book is a collection of twenty six chapters in three volumes. There are ten chapters in this first volume. The book as a whole attempts to explore many of the vague phenomena as to the characteristics, causation, and possible antidotes of hunger in the contemporary world. By carrying out both analytical and empirical investigations, it dwells on the need for a broader perspective for better understanding of the reasons and remedies of hunger.
Sex differentials in child mortality in rural Punjab persist unexpectedly despite relative wealth, socioeconomic development including rapid universalization of female education, fertility decline, and mortality decline. The most striking finding is that discrimination against girls is not generalized but highly selective: sex differentials in mortality are affected far more by birth order than by socioeconomic factors. While mother's education improves quality of childcare, it does not reduce discrimination against higher birth order daughters. Fertility reduction appears to heighten such selective discrimination. Sex discrimination has often been attributed to a lack of female participation in productive activities and also to economic hardship. This analysis emphasizes the role of women's structural marginalization in this patrilineally organized society in explaining the existence as well as the persistence of sex discrimination.
The paper lists estimates of chronic poverty incidences in 25 countries. Research reveals its 'patterns' and socio-economic 'correlates', but hardly 'explanations'. The patterns are three (economic insecurity, short-range mobility and path dependency) and the correlates are four (spatial, demographics and household type, human capital and labour, and physical assets). Important similarities are observed between developing and affluent countries in such patterns and correlates. In countries of vastly differing wealth, apparently people face some similar problems in fully participating and the burden of poverty is unequally shared over time, i.e. chronic poverty. Recognizing this, the paper draws on research in affluent countries centred more closely on life experiences. Such 'lifefull' approaches to chronic poverty contrast with present 'lifeless' approaches in developing countries. Useful explanations should understand the reversibility of chronic poverty, timeliness of reversals and relevance of outcomes.
This study provides an introduction to this special issue of The Journal of Development Studies on economic mobility and poverty dynamics in developing countries. In addition to providing a conceptual framework, it outlines how the contributions fit into the extant literature. A series of regularities emerge across these studies. The poor consist of those who are always poor — poor at all dates — and those who move in and out of poverty, with the latter group tending to be strikingly large. Such movements in and out of poverty are apparent when looking at poverty in either absolute or relative terms. Changes in returns to endowments can be a potent source of increased incomes. Finally, seemingly transitory shocks can have long-term consequences. The study concludes by drawing out the policy implications of these regularities.
Measurements of child poverty are commonly carried out using household expenditure data in per capita terms or adjusted by some standard parameter of economies of size. In this paper, we use adult equivalence scales and economies of scale coefficients estimated from the data to assess child poverty in Vietnam. By doing so, we show child poverty in Vietnam to be overestimated by conventional techniques. The commonly used technique for the estimation of adult equivalence scales contains an implicit household income distribution. Therefore, we used these techniques to estimate child poverty and patterns of resource allocation for different household groups. Better-off families (which are largely urban, more educated, female-headed and from the Khin ethnic majority) spend a lower share of their income on children than other household groups, though their children are still better off in absolute terms. A comparison of the data between 1992-93 and 1997-98 also reveals that children from better-off family groups have experienced a more rapid increase in welfare levels than children from other sectors of Vietnamese society during this period. The presence of gender discrimination in child treatment is also investigated. Rural and male headed households are those that more prominently appear as discriminating against female children. We found no clear relationship between gender discrimination and expenditure or between gender discrimination and level of education.
Vietnam's ethnic minorities, who tend to live mostly in remote rural areas, typically have lower living standards than the ethnic majority. How much is this because of differences in economic characteristics (such as education levels and land) rather than low returns to characteristics? Is there a self-reinforcing culture of poverty in the minority groups, reflecting patterns of past discrimination? The authors find that differences in levels of living are due in part to the fact that the minorities live in less productive areas characterized by difficult terrain, poor infrastructure, less access to off-farm work and the market economy, and inferior access to education. Geographic disparities tend to persist because of immobility and regional differences in living standards. But the authors also find large differences within geographical areas even after controlling for household characteristics. They find differences in returns to productive characteristics to be the most important explanation for ethnic inequality. But the minorities do not obtain lower returns to all characteristics. There is evidence of compensating behavior. For example, pure returns to location-even in remote, inhospitable areas-tend to be higher for minorities, though not high enough to overcome the large consumption difference with the majority. The majority ethnic group's model of income generation is a poor guide on how to fight poverty among ethnic minority groups. Nor is it enough to target poor areas to redress ethnic inequality. Policies must be designed to reach minority households in poor areas and to explicitly recognize behavior patterns (including compensating behavior) that have served the minorities well in the short term but intensify ethnic inequalities in the longer term. It will be important to open up options for minority groups both by ensuring that they are not disadvantaged (in labor markets, for example), and by changing the conditions that have caused their isolation and social exclusion.
Although malnourished children are stunted, their bone maturity is usually retarded to a comparable degree. This is seen in impoverished societies as well as in diseases such as coeliac disease, inflammatory bowel disease and hormonal deficiency. When these children are followed to adulthood they normally have some degree of spontaneous catch-up. With a change in environment, through adoption, emigration or with treatment of the disease there is usually definite catch-up growth, although it is often not to the NCHS standards. If puberty is delayed and/or growth continues into the early or mid twenties, then an acceptable final adult height is achieved. However, there may be a limitation imposed on an individual's maximum height by genetic imprinting in very early development. This may be the case where full catch-up appears to have taken place but is followed by an advanced puberty and early cessation of growth (Proos, Hofvander & Tuvemo, 1991a). The data from US slaves and cases of hormonal replacement, where treatment was initiated after age 18, each show that, if the circumstances of children in the Third World change, almost complete reversal of stunting is possible. The children can reach their own height potentials. Total reversal to affluent societal norms would probably require cross-generational catch-up. The most obvious reason why catch-up is not seen regularly is that an appropriate diet is not available over a sufficient period of time. We do not know the optimum ingredients for such a diet. Sulphur has been neglected as an essential nutrient; its economy should be examined in relation to skeletal growth in stunted populations.
The literature on inequality measurement has been largely concerned with single-dimensioned indicators. This paper explores
some of the issues which arise when there are several dimensions to inequality, and these are not readily reduced to a single
index, concentrating particularly on the two-dimensioned case. We make use of results on multi-variate stochastic dominance
in portfolio theory, extending these and applying them to the measurement of inequality. The use of the dominance conditions
is illustrated by an application to the international distribution of income and life expectancy.
Many aspects of living conditions can fluctuate significantly from one period of time to another, as for example the income levels or nutritional status of small scale agricultural producers subject to the effects of climatic variability or price changes. Therefore in discussing poverty, it is highly desirable to adopt a dynamic perspective, and draw a distinction between transient and chronic poverty. For those experiencing transient poverty their poverty is temporary; such individuals may experience movements into and out of poverty but are not persistently poor. The chronically poor by contrast experience persistent poverty over a reasonably long period of time. As in the analogous case of short-term and long-term unemployment, these two types of poverty may be quite distinct and call for different policy responses.This paper discusses available quantitative evidence in relation to chronic poverty. After an introduction, section 2 discusses conceptual issues in defining and measuring chronic poverty. To identify chronic poverty will generally require either comparable information on individuals at two or more points in time (longitudinal or panel data) or information that though only collected once, provides information on dynamics (e.g. retrospective information). Much of the literature has focused on panel data sets and monetary measures of living conditions; this section discusses the two approaches that have been used in such studies to the chronically poor (the spells and components approaches). It also highlights the importance of measurement error in making this distinction and the need to identify chronic and transient aspects of deprivation in non-monetary dimensions where this distinction is relevant. Available evidence from panel data sets on the extent of chronic poverty and the characteristics of the chronically poor is reviewed in section 3.In almost all instances a minority of the poor at a given point in time are identified as being chronically poor, though often this is still a substantial minority. The chronically poor are typically associated as having distinct characteristics which may explain their persistent poverty, such as low levels of human capital and productive assets, being in households with high dependency ratios and working in low return activities. By contrast the transient poor are those that have difficulty in insuring themselves against the consequences of shocks such as adverse price changes. In many cases though panel data are not available, and even where they are, they inevitably suffer from various limitations - in particular the difficulty of measuring changes accurately at the individual level. Section 4 therefore considers various ways in which it may be possible to consider chronic poverty in the absence of panel data. Section 5 concludes, including by summarizing important issues for future research.
This paper provides an overview of the meaning of 'chronic poverty,' and identifies frameworks for analysing it, as understood by the Chronic Poverty Research Centre (CPRC) during the initial stages of research. After an introduction to the CPRC, the second section briefly reviews the major frameworks for conceptualising, defining, explaining, and measuring poverty in its broader sense, and relates these to the study of chronic poverty. It is suggested that research undertaken by CPRC should focus on poverty in its broadest, multi-dimensional sense, and that those who are chronically poor are likely to be poor in several ways, not only in terms of income. At the same time, the analysis of money-metric and other quantitative indicators are the primary means by which study of chronic poverty is presently undertaken, and will continue to have an important role to play in research. Our understanding of chronic poverty is also likely to draw upon notions of both absolute and relative poverty, vulnerability, social exclusion, and capabilities and freedoms, as well as upon subjective assessments by the poor themselves. In the third section, the characteristics of chronic poverty are presented. Long duration is identified as both necessary and sufficient for poverty to be considered chronic. It is hypothesised that chronic poverty will also often be multi-dimensional and severe. It is proposed that a five-tiered categorisation of the poor be adopted - always poor, usually poor, churning poor, occasionally poor and never poor - and that transitions between different levels over time be closely monitored. It is suggested that the tightest possible definition of chronic poverty would be intergenerationally transmitted (IGT) poverty, which is likely to be relatively intractable and therefore likely to escape current poverty reduction efforts. In this way, IGT poverty is both a characteristic and cause of chronic poverty. The subsection on IGT poverty draws upon the literature surrounding the intergenerational transfer of different capitals. This is followed by an analysis of the ways in which severity and multi-dimensionality are often characteristics of chronic poverty, and a brief review of the relevance of the World Bank's Voices of the Poor studies to an understanding of chronic poverty. The final two subsections argue that the chronically poor are a heterogeneous group. There are several sets of people who are particularly susceptible to chronic poverty, and that are likely to experience multiple and overlapping vulnerabilities. These groups include those experiencing deprivation because of their stage in the life cycle, those discriminated against because of their social position in the community or household, those with health problems and impairments, and people living in remote rural areas, urban ghettos and regions where prolonged violent conflict and insecurity have occurred. In the fourth section, the causes of chronic poverty at different levels of analysis are explored, and analytical frameworks for their understanding are laid down - quantitative panel data analysis; livelihoods analysis; freedoms; social and political exclusion; and policy analysis frameworks, which include consideration of avoiding the negative impacts of development which help to extend and deepen poverty for the poor. The final two sections bring together the preceding work and discuss the implications of our initial understanding of chronic poverty for future research.
We use Demographic and Health Surveys (DHS) to compare “poverty” at two or more points in time within and between African countries. Our welfare measure is an index resulting from a factor analysis of various household characteristics, durables, and household heads’ education. An advantage of this measure is that for intertemporal and intraregional comparisons, we need not rely on suspect price deflators and currency conversion factors. The wide availability and similarity of questionnaires of the DHS facilitate comparisons over both time and countries. Our results generally show declines in poverty during the previous decade, largely due to improvements in rural areas.
Viet Nam's ethnic minorities tend to be concentrated in remote areas and have lower living standards than the ethnic majority. How much is this due to poor economic characteristics versus low returns to characteristics? Is there a self-reinforcing culture of poverty in the minority group? We find that differences in returns to productive characteristics are an important explanation for ethnic inequality. There is evidence of compensating behavior on the part of the minorities. The results suggest that to redress ethnic inequality, policies need to reach minorities within poor areas and explicitly recognize behavioral patterns that have served them well in the short term, but intensify ethnic differentials in the longer term.
This article discusses issues in measuring and modelling poverty. All high-income countries and roughly two-thirds of the developing and transitional countries, have a more or less nationally-representative sample survey instrument which collects household-level data on consumption expenditures and/or income sources at varying frequencies, from once a year to once every five years or so. Should current practice in poverty measurement be abandoned in favor of non-income indicators? Income or consumption can be defined in many ways, some far preferable to others. At one extreme there is net cash inflow, as a measure of income or cash expenditures but it is widely agreed that their coverage is too limited. More or less comprehensive measures, including imputed values when necessary, are now generally feasible, and becoming common. In theory, one can define a very broad income concept which provides an exact money metric of almost any concept of welfare one is likely to come up with, including both utility and capability-based concepts. It can be agreed that even the best income and non-income measures found in practice are incomplete on their own. Considerable research has gone into the problem of identifying money metric utility from demand behavior, including setting equivalence scales which give the differences in income needed to compensate families with different demographic compositions. There is a deep problem in identifying the relevant parameters of the correct welfare metric from conventional demand data.
2 CD-ROM: 1978-1999 and 1978-2010 (Archives: ask a librarian / En archives: demander au Centre de documentation)
The theoretical basis for measuring child costs is discussed, and de- tailed consideration is given to two straightforward procedures for calculation, Engel's food share method and Rothbarth's adult good method. Each of these methods embodies different definitions of child costs so that the same empirical evidence can generate quite different estimates depending on the method used. It is shown that true costs are generally overstated by Engel's method and under- stated by Rothbarth's procedure, although the latter, unlike the for- mer, can provide a sensible starting point for cost measurement. Our estimates from Sri Lankan and Indonesian data suggest that chil- dren cost their parents about 30-40 percent of what they spend on themselves.
The collective approach to household consumption behavior tries to infer from variables supposed to affect the general bargaining position of household members information on the allocation of consumptions goods and tasks among them. This paper investigates the extension of previous work to the case where children may be considered as a public consumption good by the two adult members of a household. The main question being asked is whether it is possible to retrieve from the aggregate consumption behaviour of the household and the relative earnings of the parents information on the allocation of goods between them and children. This alternative approach to the estimation of the `cost of children' is contrasted with the conventional approach based on a `unitary' representation of and demographic separability assumptions on household consumption behaviour.
Economists have relied heavily on household incomes or expenditures normalized for differences in household specific prices and demographics in their research and policy advice related to poverty and inequality. Recognizing the conceptual and empirical problems that confound such measures does not mean that they should be ignored. Instead, it indicates the need for supplementary measures to capture the missing items. Implementing a genuinely multidimensional approach will often make the welfare rankings of social states more difficult, but that fact points to the nonrobustness of low-dimensional rankings. This may have its own policy ramifications, with the possibility of correspondence between policy instruments and welfare objectives. The model types used to understand the poverty and inequity determination processes will be affected. Not only will there be more dependent variables to consider, but variables will have potentially complex relationships. These relationships will often be hard to empirically disentangle, despite richer integrated and longitudinal data sets. Such data open rich andrelevant agenda for research into the dynamics of poverty along multiple dimensions. A simultaneous attack on these issues from all three fronts - measurement, modeling, and data - offers hope of establishing a credible empirical foundation for public action in fighting poverty.
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