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Multidimensional Poverty Dynamics in Ethiopia: How do they differ from Consumption-based Poverty Dynamics?

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  • Seff, Ilana
  • Jolliffe, Dean

Abstract

Poverty can take many different forms, ranging widely over dimensions both monetary, such as consumption or income, and nonmonetary, such as health and education. One large class of nonmonetary measures of poverty is the multidimensional poverty index (MPI); recent studies document that people identified as poor in one dimension are often different from those who found to be poor in another dimension. This paper extends the literature by examining whether MDP dynamics are similar to the dynamics of a related consumption based measure of poverty. Using two waves of Ethiopian panel data (2011-12 and 2013-14) we estimate poverty based on a monetary value of real consumption and a non monetary weighted deprivation index (our underlying measure of MDP). Similar to studies for other countries, we find that the two estimates of poverty identify significantly different groups of Ethiopians as poor. A key contribution of this paper is the finding that changes in consumption are largely independent of changes in multidimensional wellbeing: Awareness that an individual’s wellbeing improved over time as measured by improvements in the weighted deprivation index provides no information about whether his or her well being has improved where consumption is concerned.

Suggested Citation

  • Seff, Ilana & Jolliffe, Dean, 2017. "Multidimensional Poverty Dynamics in Ethiopia: How do they differ from Consumption-based Poverty Dynamics?," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 25(2), May.
    • Handle: RePEc:ags:eeaeje:259502
    DOI: 10.22004/ag.econ.259502
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    Cited by:

    1. Dika, Galgalo & Tolossa, Degefa & Eyana, Shiferaw Muleta, 2021. "Multidimensional poverty of pastoralists and implications for policy in Boorana rangeland system, Southern Ethiopia," World Development Perspectives, Elsevier, vol. 21(C).
    2. Getachew Yirga Belete, 2021. "Impacts of Social Protection Programmes on Children’s Resources and Wellbeing: Evidence from Ethiopia," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 14(2), pages 681-712, April.
    3. Himanshu & Peter Lanjouw, 2020. "Income mobility in the developing world: Recent approaches and evidence," WIDER Working Paper Series wp-2020-7, World Institute for Development Economic Research (UNU-WIDER).
    4. Migbaru Alamirew Workneh, 2020. "Nonmonetary poverty in Ethiopia: Multidimensional approach," Poverty & Public Policy, John Wiley & Sons, vol. 12(4), pages 326-356, December.
    5. Migbaru Alamirew Workneh & Zerayehu Sime Eshete, 2021. "Household Level Non-Monetary Poverty in Ethiopia and its Driving Factors: a Multidimensional Approach with Panel Estimation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 154(1), pages 145-168, February.

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