IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/10076.html
   My bibliography  Save this paper

A Welfarist Theory Unifying Monetary and Non-Monetary Poverty Measurement

Author

Listed:
  • World Bank

Abstract

Multidimensional poverty measures are increasingly used in practice even though they face strongcriticism and generate longlasting debates. These contentions primarily find their origin in the divergencebetween standard poverty identification practices and a welfarist definition of the poor. This paper fills this gapby constructing a poverty measurement theory that (i) adopts a welfarist definition of the poor, (ii) acknowledges thatthe relevant welfare function is only partially known and (iii) encompasses both market and non-market dimensions ofwell-being. The theory shows that standard identification practices are not flexible enough in order to properlyaccount for the multidimensional nature of well-being. This nature implies that an individual is poor when sheexperiences an extremely low outcome in some dimension or/and when she cumulates moderately low outcomes in severaldimensions. The paper proposes a simple refinement thatbetter reflects this insight. The paper uses the theory in order to provide answers to several longlasting debates. Thetheory provides a conceptual foundation from which practitioners may derive guidance for the many choices they face.

Suggested Citation

  • World Bank, 2022. "A Welfarist Theory Unifying Monetary and Non-Monetary Poverty Measurement," Policy Research Working Paper Series 10076, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10076
    as

    Download full text from publisher

    File URL: https://documents.worldbank.org/curated/en/099231506092230051/pdf/IDU0bcbf5f7809dfb04dbe082e603ac11ae96b07.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shatakshee Dhongde & Yi Li & Prasanta K. Pattanaik & Yongsheng Xu, 2016. "Binary data, hierarchy of attributes, and multidimensional deprivation," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(4), pages 363-378, December.
    2. Gaurav Datt, 2019. "Distribution-Sensitive Multidimensional Poverty Measures," The World Bank Economic Review, World Bank, vol. 33(3), pages 551-572.
    3. Alkire, Sabina & Foster, James & Seth, Suman & Santos, Maria Emma & Roche, Jose Manuel & Ballon, Paola, 2015. "Multidimensional Poverty Measurement and Analysis," OUP Catalogue, Oxford University Press, number 9780199689491.
    4. Koen Decancq & Marc Fleurbaey & François Maniquet, 2019. "Multidimensional poverty measurement with individual preferences," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(1), pages 29-49, March.
    5. World Bank, 2020. "Poverty and Shared Prosperity 2020," World Bank Publications - Books, The World Bank Group, number 34496.
    6. Francisco H. G. Ferreira & Shaohua Chen & Andrew Dabalen & Yuri Dikhanov & Nada Hamadeh & Dean Jolliffe & Ambar Narayan & Espen Beer Prydz & Ana Revenga & Prem Sangraula & Umar Serajuddin & Nobuo Yosh, 2016. "A global count of the extreme poor in 2012: data issues, methodology and initial results," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(2), pages 141-172, June.
    7. Aaberge, Rolf & Peluso, Eugenio & Sigstad, Henrik, 2019. "The dual approach for measuring multidimensional deprivation: Theory and empirical evidence," Journal of Public Economics, Elsevier, vol. 177(C), pages 1-1.
    8. Martin Ravallion, 2011. "On multidimensional indices of poverty," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(2), pages 235-248, June.
    9. Francisco H. G. Ferreira & Maria Ana Lugo, 2013. "Multidimensional Poverty Analysis: Looking for a Middle Ground," The World Bank Research Observer, World Bank, vol. 28(2), pages 220-235, August.
    10. Martin Ravallion, 2012. "Mashup Indices of Development," The World Bank Research Observer, World Bank, vol. 27(1), pages 1-32, February.
    11. Sabina Alkire & James Foster, 2011. "Understandings and misunderstandings of multidimensional poverty measurement," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(2), pages 289-314, June.
    12. Ravallion, Martin, 2016. "The Economics of Poverty: History, Measurement, and Policy," OUP Catalogue, Oxford University Press, number 9780190212773.
    13. World Bank & UNDP & UNICEF, 2021. "A Roadmap for Countries Measuring Multidimensional Poverty," World Bank Publications - Reports 35808, The World Bank Group.
    14. A. B. Atkinson & F. Bourguignon, 1982. "The Comparison of Multi-Dimensioned Distributions of Economic Status," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 49(2), pages 183-201.
    15. Marc Fleurbaey, 2009. "Beyond GDP: The Quest for a Measure of Social Welfare," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 1029-1075, December.
    16. François Bourguignon & Satya R. Chakravarty, 2019. "Multidimensional Poverty Orderings: Theory and Applications," Themes in Economics, in: Satya R. Chakravarty (ed.), Poverty, Social Exclusion and Stochastic Dominance, pages 143-166, Springer.
    17. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    18. Jean-Yves Duclos & David Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Spatial Poverty Comparisons in Ghana, Madagascar, and Uganda," The World Bank Economic Review, World Bank, vol. 20(1), pages 91-113.
    19. Satya R. Chakravarty & Maria Ana Lugo, 2019. "Multidimensional Indicators of Inequality and Poverty," Themes in Economics, in: Satya R. Chakravarty (ed.), Poverty, Social Exclusion and Stochastic Dominance, pages 223-259, Springer.
    20. François Bourguignon & Satya R. Chakravarty, 2019. "The Measurement of Multidimensional Poverty," Themes in Economics, in: Satya R. Chakravarty (ed.), Poverty, Social Exclusion and Stochastic Dominance, pages 83-107, Springer.
    21. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7), pages 476-487.
    22. Jean-Yves Duclos & David E. Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Poverty Comparisons," Economic Journal, Royal Economic Society, vol. 116(514), pages 943-968, October.
    23. Sugden, Robert, 1993. "Welfare, Resources, and Capabilities: A Review [Inequality Reexamined]," Journal of Economic Literature, American Economic Association, vol. 31(4), pages 1947-1962, December.
    24. Jean-Yves Duclos & David Sahn & Stephen D. Younger, 2006. "Robust Multidimensional Poverty Comparisons with Discrete Indicators of Well-being," Cahiers de recherche 0628, CIRPEE.
    25. Satya R. Chakravarty (ed.), 2019. "Poverty, Social Exclusion and Stochastic Dominance," Themes in Economics, Springer, number 978-981-13-3432-0, June.
    26. Samuelson, Paul A & Swamy, S, 1974. "Invariant Economic Index Numbers and Canonical Duality: Survey and Synthesis," American Economic Review, American Economic Association, vol. 64(4), pages 566-593, September.
    27. Ravallion, M., 1998. "Poverty Lines in Theory and Practice," Papers 133, World Bank - Living Standards Measurement.
    28. Kai-yuen Tsui, 2002. "Multidimensional poverty indices," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(1), pages 69-93.
    29. Abraham Mehrez & Amiram Gafni, 1989. "Quality-adjusted Life Years, Utility Theory, and Healthy-years Equivalents," Medical Decision Making, , vol. 9(2), pages 142-149, June.
    30. A. Atkinson, 2003. "Multidimensional Deprivation: Contrasting Social Welfare and Counting Approaches," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(1), pages 51-65, April.
    31. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    32. Prasanta K. Pattanaik & Yongsheng Xu, 2018. "On Measuring Multidimensional Deprivation," Journal of Economic Literature, American Economic Association, vol. 56(2), pages 657-672, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Koen Decancq & Marc Fleurbaey & François Maniquet, 2019. "Multidimensional poverty measurement with individual preferences," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(1), pages 29-49, March.
    2. Burhan Can Karahasan & Fırat Bilgel, 2021. "The Topography and Sources of Multidimensional Poverty in Turkey," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 154(2), pages 413-445, April.
    3. Malokele Nanivazo, 2015. "First Order Dominance Analysis: Child Wellbeing in the Democratic Republic of Congo," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 122(1), pages 235-255, May.
    4. Permanyer, Iñaki, 2014. "Assessing individuals' deprivation in a multidimensional framework," Journal of Development Economics, Elsevier, vol. 109(C), pages 1-16.
    5. Maria Emma Santos, 2014. "Measuring Multidimensional Poverty in Latin America: Previous Experience and the Way Forward," OPHI Working Papers 66, Queen Elizabeth House, University of Oxford.
    6. Christoph Bader & Sabin Bieri & Urs Wiesmann & Andreas Heinimann, 2016. "A Different Perspective on Poverty in Lao PDR: Multidimensional Poverty in Lao PDR for the Years 2002/2003 and 2007/2008," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 126(2), pages 483-502, March.
    7. Sabina Alkire & Yingfeng Fang, 2019. "Dynamics of Multidimensional Poverty and Uni-dimensional Income Poverty: An Evidence of Stability Analysis from China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(1), pages 25-64, February.
    8. Alkire, Sabina & Santos, Maria Emma, 2014. "Measuring Acute Poverty in the Developing World: Robustness and Scope of the Multidimensional Poverty Index," World Development, Elsevier, vol. 59(C), pages 251-274.
    9. M. Azhar Hussain & Nikolaj Siersbæk & Lars Peter Østerdal, 2020. "Multidimensional welfare comparisons of EU member states before, during, and after the financial crisis: a dominance approach," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 55(4), pages 645-686, December.
    10. Espinoza-Delgado, José & Klasen, Stephan, 2018. "Gender and multidimensional poverty in Nicaragua: An individual based approach," World Development, Elsevier, vol. 110(C), pages 466-491.
    11. Suman Seth and Gaston Yalonetzky, 2018. "Assessing Deprivation with Ordinal Variables: Depth Sensitivity and Poverty Aversion," OPHI Working Papers ophiwp123.pdf, Queen Elizabeth House, University of Oxford.
    12. Florent Bresson & Jean-Yves Duclos, 2015. "Intertemporal poverty comparisons," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(3), pages 567-616, March.
    13. José Roche, 2013. "Monitoring Progress in Child Poverty Reduction: Methodological Insights and Illustration to the Case Study of Bangladesh," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 112(2), pages 363-390, June.
    14. Deniz Sevinc, 2020. "How Poor is Poor? A novel look at multidimensional poverty in the UK," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(3), pages 833-859, June.
    15. Sung-Geun Kim, 2015. "Fuzzy Multidimensional Poverty Measurement: An Analysis of Statistical Behaviors," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(3), pages 635-667, February.
    16. José Espinoza-Delgado & Jacques Silber, 2018. "Multi-dimensional poverty among adults in Central America and gender differences in the three I’s of poverty: Applying inequality sensitive poverty measures with ordinal variables," Ibero America Institute for Econ. Research (IAI) Discussion Papers 237, Ibero-America Institute for Economic Research.
    17. Gaston Yalonetzky, 2014. "Conditions for the most robust multidimensional poverty comparisons using counting measures and ordinal variables," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(4), pages 773-807, December.
    18. Iñaki Permanyer, 2019. "Measuring poverty in multidimensional contexts," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 53(4), pages 677-708, December.
    19. Yekaterina Chzhen & Lucia Ferrone, 2017. "Multidimensional Child Deprivation and Poverty Measurement: Case Study of Bosnia and Herzegovina," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(3), pages 999-1014, April.
    20. Sabina Alkire & James Foster, 2011. "Understandings and misunderstandings of multidimensional poverty measurement," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(2), pages 289-314, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:10076. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.