Social Policy

Analysis of Multidimensional Poverty: Theory and Case by Louis-Marie Asselin

By Louis-Marie Asselin

Poverty is a paradoxical kingdom. Recognizable within the eld for any delicate observer who travels in distant rural parts and concrete slums and meets marginalized humans in a given society, poverty nonetheless continues to be a problem to conceptual formalization and to dimension that's in step with such formalization. The research of poverty is multidisciplinary. It is going from ethics to economics, from political technological know-how to human biology, and any kind of dimension rests on arithmetic. in addition, poverty is multifaceted in response to the categories of deprivation, and it's also gender and age speci c. A vector of variables is needed, which increases a considerable challenge for person and workforce comparisons essential to fairness research. Multidimension- ity additionally complicates the aggregation essential to practice the ef ciency research of regulations. in relation to source of revenue poverty, those difficulties, fairness and ef ciency, have bene ted from very signi cant growth within the eld of economics. comparable achievements are nonetheless to return within the zone of multidimensional poverty. inside of this normal history, this publication has a really modest and narrow-scoped aim. It proposes an operational technique for measuring multidimensional poverty, autonomous from the conceptual foundation, the dimensions and the qualitative in addition to the quantitative nature of the first symptoms used to explain the poverty of a person, a family or a sociodemographic entity.

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C has the following expression for the population unit i: K W 1,k Ii∗k . 1) column-vector. 11 See Anderson (1958). , the columns of the data matrix X after standardization. The factor score coefficients W 1,k must all be positive (negative) to interpret the first component as a decreasing (increasing) poverty indicator, depending on whether the primary indicators increase (decrease) when people become wealthier. At the end of the process, it comes out that the Wα,k are in fact the usual multiple regression coefficients between the component Fα and the standardized primary indicators.

We will now generalize the previous approach to the composite indicator of poverty. First observe that there is an obvious one–one correspondence between the categorical coefficients appearing in the linear expression of the L possible factorial components and the categorical contributions to the disaggregated total inertia, as shown in matrices A and B. The general term of matrix B is the square of the matrix A general term. The usual approach restricted to consider only the first factorial axis to pick up from A the J coefficients of the composite indicator, conditional on the FAOC-G requirement, is based on the fact that in matrix B the first line has a maximal sum in the inertia decomposition.

Wk is then called a poverty index relative to the indicator Ik for the population U. Obviously, this index Wk can be 1 The term “elementary population unit” can refer to individuals and households as well as to villages, regions and countries. -M. 1007/978-1-4419-0843-8 3, C Springer Science+Business Media, LLC 2009 19 20 3 Composite Indicator of Poverty defined on any subpopulation of U consisting of n individuals, n ≥ 1. For n =1, the poverty index is a poverty measure on each individual. Poverty indices are required for population comparisons, while poverty indicators and poverty measures are sufficient for comparisons between individuals.

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