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Synergies Among Monetary, Multidimensional and Subjective Poverty: Evidence from Nepal

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  • Shabana Mitra

Abstract

In this paper we construct a Nepal specific multidimensional poverty index using the Nepal Longitudinal Sample Survey (NLSS) for the period 1995–2010. The indicators for Nepal Multidimensional Poverty Index (NMP) have been chosen using the goals set by the Government of Nepal and the perceptions of adequacy as reported by households. In doing so this study combines multidimensional and subjective methods of measuring wellbeing. The subjective data is used to guide the choice of dimensions for the multidimensional analysis. Our findings show that Nepal has had a dramatic fall in multidimensional poverty along with the observed fall in consumption poverty in this period. Comparing the extent to which consumption poverty accurately identifies the multidimensionally poor, we find the error has reduced over time but remains large in proportion to the poverty rate implying the need for a multidimensional measure. For the different ethnic groups and regions the patterns of reduction in poverty are not homogenous and are different from those of consumption poverty with the NMP outperforming the consumption poverty in tracking targeted policy actions. Copyright Springer Science+Business Media Dordrecht 2016

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  • Shabana Mitra, 2016. "Synergies Among Monetary, Multidimensional and Subjective Poverty: Evidence from Nepal," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(1), pages 103-125, January.
    • Handle: RePEc:spr:soinre:v:125:y:2016:i:1:p:103-125
    DOI: 10.1007/s11205-014-0831-3
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    1. Srinivas Goli & Nagendra Kumar Maurya & Moradhvaj & Prem Bhandari, 2019. "Regional Differentials in Multidimensional Poverty in Nepal: Rethinking Dimensions and Method of Computation," SAGE Open, , vol. 9(1), pages 21582440198, March.
    2. Mitra, Anirban & Mitra, Shabana, 2020. "Redistribution of Economic Resources due to Conflict: The Maoist Uprising in Nepal," Journal of Comparative Economics, Elsevier, vol. 48(3), pages 578-604.
    3. Fan Yang & Krishna P. Paudel, 2023. "Nutrition, multidimensional poverty and income: The case of Nepal," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(7), pages 1962-1984, October.
    4. Pinaki Das & Bibek Paria & Shama Firdaush, 2021. "Juxtaposing Consumption Poverty and Multidimensional Poverty: A Study in Indian Context," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 469-501, January.
    5. Jifei Zhang & Chunyan Liu & Craig Hutton & Hriday Lal Koirala, 2018. "Geographical Dynamics of Poverty in Nepal between 2005 and 2011: Where and How?," Sustainability, MDPI, vol. 10(6), pages 1-24, June.
    6. Wei Zou & Xiaopei Cheng & Zengzeng Fan & Wenxi Yin, 2023. "Multidimensional Relative Poverty in China: Identification and Decomposition," Sustainability, MDPI, vol. 15(6), pages 1-27, March.
    7. 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.
    8. Ashma Vaidya & Audrey L. Mayer, 2016. "Critical Review of the Millennium Project in Nepal," Sustainability, MDPI, vol. 8(10), pages 1-23, October.
    9. Abubakari Ahmed & Eric Dompreh & Alexandros Gasparatos, 2019. "Human wellbeing outcomes of involvement in industrial crop production: Evidence from sugarcane, oil palm and jatropha sites in Ghana," PLOS ONE, Public Library of Science, vol. 14(4), pages 1-33, April.
    10. Siu Ming Chan & Hung Wong, 2022. "Housing and Subjective Well-Being in Hong Kong: A Structural Equation Model," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(3), pages 1745-1766, June.
    11. Yadira Diaz, 2015. "Differences in needs and multidimensional deprivation measurement," Working Papers 387, ECINEQ, Society for the Study of Economic Inequality.

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