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Vulnerability to Multi-Dimensional Poverty: An Empirical Comparison of Alternative Measurement Approaches

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  • Muhammad Masood Azeem
  • Amin W. Mugera
  • Steven Schilizzi

Abstract

This paper investigates whether different measures of ex-post poverty and ex-ante vulnerability to poverty provide consistent estimates of poverty and vulnerability to poverty across households. Moreover, if there is some heterogeneity in the identification of households as poor and vulnerable, it investigates the degree of mismatch between measures? The ex-post monetary poverty (MP) and multidimensional poverty (MDP) measures are used to identify poor households. Likewise, the ex-ante vulnerability to monetary poverty (VMP) and vulnerability to multidimensional poverty (VMDP) measures are used to identify vulnerable households. Using a large household survey data-set of about 90,000 households from the Punjab province of Pakistan, we find that most of the vulnerable households are accurately identified by the ex-ante measures of vulnerability to poverty. However, the ex-post measures of poverty identify different households as poor. Our results show that 18 percent households experiencing MDP are not captured by the one-dimensional measure of MP. The important implication of this study is that the choice of measures does matter in ex-post poverty identification, but not as much in the identification of ex-ante vulnerability to poverty.

Suggested Citation

  • Muhammad Masood Azeem & Amin W. Mugera & Steven Schilizzi, 2018. "Vulnerability to Multi-Dimensional Poverty: An Empirical Comparison of Alternative Measurement Approaches," Journal of Development Studies, Taylor & Francis Journals, vol. 54(9), pages 1612-1636, September.
    • Handle: RePEc:taf:jdevst:v:54:y:2018:i:9:p:1612-1636
    DOI: 10.1080/00220388.2017.1344646
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    Cited by:

    1. Liaqat Ali & Muhammad Kamran Naqi Khan & Habib Ahmad, 2020. "Financial Fragility of Pakistani Household," Journal of Family and Economic Issues, Springer, vol. 41(3), pages 572-590, September.
    2. Jing Su & Liwei Tang & Pan Xiao & Ermei Wang, 2023. "Multidimensional poverty vulnerability in rural China," Empirical Economics, Springer, vol. 64(2), pages 897-930, February.
    3. Jena, Pradyot Ranjan & Khosla, Sunil & Rahut, Dil Bahadur, 2024. "Can farmers with higher capabilities fend off falling into future Poverty? Empirical evidence from a tribal region in eastern India," World Development Perspectives, Elsevier, vol. 33(C).
    4. Mingyue Liu & Lulu Yuan & Yifu Zhao, 2024. "Risk of Returning to Multidimensional Poverty and Its Influencing Factors among Relocated Households for Poverty Alleviation in China," Agriculture, MDPI, vol. 14(6), pages 1-19, June.
    5. Yanhui Wang & Wenping Qi, 2021. "Multidimensional spatiotemporal evolution detection on China’s rural poverty alleviation," Journal of Geographical Systems, Springer, vol. 23(1), pages 63-96, January.
    6. Sunil Khosla & Pradyot Ranjan Jena, 2023. "Using Multidimensional Poverty Measure to Target Right Beneficiaries to Achieve Sustainable Development Goal-1 in India," Indian Journal of Human Development, , vol. 17(2), pages 290-309, August.
    7. Fang Xu & Xiaoru Zhang & Di Zhou, 2023. "Do rural clan‐based networks reduce the risk of a return to poverty? Evidence from China," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(5), pages 856-883, July.
    8. Isaac Koomson & Renato A. Villano & David Hadley, 2020. "Effect of Financial Inclusion on Poverty and Vulnerability to Poverty: Evidence Using a Multidimensional Measure of Financial Inclusion," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(2), pages 613-639, June.
    9. Tabish Nawab & Saqlain Raza & Malik Shahzad Shabbir & Ghulam Yahya Khan & Sana Bashir, 2023. "Multidimensional poverty index across districts in Punjab, Pakistan: estimation and rationale to consolidate with SDGs," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(2), pages 1301-1325, February.
    10. Jianling Qi & Huanjiao Li & Wenlong Li & Jing Jin & Feng Ye, 2024. "The Influence of Digital Skills on Farm Households’ Vulnerability to Relative Poverty: Implications for the Sustainability of Farmers’ Livelihoods," Sustainability, MDPI, vol. 16(19), pages 1-18, September.
    11. Anh Thu Quang Pham & Pundarik Mukhopadhaya & Ha Vu, 2021. "Estimating poverty and vulnerability to monetary and non-monetary poverty: the case of Vietnam," Empirical Economics, Springer, vol. 61(6), pages 3125-3177, December.
    12. Oconnor, Christopher, 2023. "Robust estimates of vulnerability to poverty using quantile models," Economic Modelling, Elsevier, vol. 123(C).
    13. Jhon Edwar Hernández & Blanca Zuluaga, 2022. "Vulnerability to Multidimensional Poverty: An Application to Colombian Households," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(1), pages 345-371, November.
    14. Zaira Najam, 2021. "The sensitivity of poverty trends to dimensionality and distribution sensitivity in poverty measures—District level analysis for Pakistan," Poverty & Public Policy, John Wiley & Sons, vol. 13(4), pages 368-411, December.
    15. Haenssgen, Marco J. & Charoenboon, Nutcha & Zanello, Giacomo, 2021. "You’ve got a friend in me: How social networks and mobile phones facilitate healthcare access among marginalised groups in rural Thailand and Lao PDR," World Development, Elsevier, vol. 137(C).
    16. Yuan Li Liu & Kai Zhu & Qi Yao Chen & Jing Li & Jin Cai & Tian He & He Ping Liao, 2021. "Impact of the COVID-19 Pandemic on Farm Households’ Vulnerability to Multidimensional Poverty in Rural China," Sustainability, MDPI, vol. 13(4), pages 1-16, February.

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