Counting multidimensional deprivations in the presence of differences in needs

Publication type

Conference Paper


34th IARIW General Conference, 21-27 August 2016, Dresden, Germany


Publication date

August 23, 2016


Individuals from different demographic population subgroups and households
of different size and composition exhibit different needs. Multidimensional
deprivation comparisons in the presence of these differences in
needs have yet to be analysed. This paper proposes a family of multidimensional
deprivation indices that explicitly takes into account observed
differences in needs across demographically heterogeneous units (i.e., either
households of different size and composition or individuals of different
population subgroups). The proposed counting family of indices
draws from the one-dimensional parametric equivalence scale literature
and aims to describe how much deprivation two demographically heterogeneous
units with different needs must exhibit to be catalogued as equivalently
deprived. Through the use of empirically developed counterfactual
scenarios, we evaluate the effects on multidimensional deprivation incidence
profiles of using the different approaches to measurement included
in our proposed family of indices. The results of this evaluation demonstrate
that neglecting differences in needs yields biased multidimensional
deprivation incidence profiles. These results also shed light on the ability
of our proposed measures to effectively capture differences in needs. Our
family of measures is also evaluated in this paper in terms of its properties.
These results prove our proposed approach to measurement has the proper
orientation and is adequate for the purposes of poverty measurement.





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