Template-type: ReDIF-Paper 1.0
Author-Name: Franco-Correa, A
Author-Email: franco@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Title: An individual-centered approach to multidimensional poverty: The cases of 
	 Chile, Colombia, Ecuador and Peru
Abstract: This paper deals with the problem of selecting the unit of analysis in 
	 multidimensional poverty analyses, which is a central decision to take, 
	 both from academic and normative points of view. The paper compares the 
	 results of an individual-level Multidimensional Poverty Index for Chile, 
	 Colombia, Ecuador and Peru with a household-based measure. In the 
	 construction of the index, four dimensions were initially identified 
	 living conditions, health, education and labour. The motivating 
	 theoretical framework is based on Sens Capability Approach and the 
	 index used is the Adjusted Headcount Ratio AHR of the Alkire-Foster 
	 2009 family of indicators. Different literature fields acknowledged 
	 the fact that individuals have varying preferences depending on their 
	 age Osberg, 2012, which do not necessarily agree with the collective 
	 preferences of the household. The present paper adopts Sens approach, 
	 noting that capabilities are mainly an individual concept. The individual 
	 index is constructed using three age groups children less than 18 years old, 
	 adults between 18 and 59 years and elderly 60 years or older.
	 Multidimensional poverty is considerably different than income poverty 
	 in all countries. A simple ranking constructed with the 
	 Multidimensional Index and using the four countries for every individual 
	 approach, shows that the ordering prevails for smaller levels of the 
	 deprivation cut-off. In every scenario, Chile has the best scores of 
	 multidimensional poverty, followed by Colombia. Differences between 
	 Ecuador and Peru show that the rank-ordering does not prevail when the 
	 unit of analysis or cut-offs change.
Classification-JEL: I32, D63, D12
Keywords: Poverty, Multidimensional analysis, Chile, Colombia, Ecuador, Peru
Series: UNU-MERIT Working Papers
Creation-Date: 20140731
Number: 2014-068
File-URL: https://unu-merit.nl/publications/wppdf/2014/wp2014-068.pdf
File-Format: application/pdf
File-Size: 769 Kb
Handle: RePEc:unm:unumer:2014068