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The Importance of Reliability and Construct Validity in Multidimensional Poverty Measurement: An Illustration Using the Multidimensional Poverty Index for Latin America (MPI-LA)

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  • Héctor E. Nájera Catalán
  • David Gordon

Abstract

The empirical properties of a multidimensional poverty index require robust assessment. However, poverty research is yet to systematically implement measurement theories and practices that have been proven to be successful in other fields. Measurement theory has been developed over more than 100 years to produce indexes that are scientific (falsifiable) in that researchers put under scrutiny whether their value judgements and assumptions result in scales that have high internal consistency (reliability) and capture the phenomenon they aim to measure (validity). The paper uses the Multidimensional Poverty Index for Latin America (MPI-LA) to illustrate the importance of adopting sound measurement practices. The MPI-LA aims to be an improvement over the widely applied Unsatisfied Basic Needs (UBN) approach. However, its empirical development was based on ad hoc non-standard methods and principles, making the conclusions of the developer’s analyses unfalsifiable and prone to confirmation bias. This analysis includes six countries and two time periods. The findings suggest that the MPI-LA is an unreliable measure of poverty and that the pre-specified dimensional structure is invalid. The paper illustrates how standard principles like reliability and validity can be used to inform the discussion about the statistical properties of a given poverty index.

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  • Héctor E. Nájera Catalán & David Gordon, 2020. "The Importance of Reliability and Construct Validity in Multidimensional Poverty Measurement: An Illustration Using the Multidimensional Poverty Index for Latin America (MPI-LA)," Journal of Development Studies, Taylor & Francis Journals, vol. 56(9), pages 1763-1783, July.
    • Handle: RePEc:taf:jdevst:v:56:y:2020:i:9:p:1763-1783
    DOI: 10.1080/00220388.2019.1663176
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    Cited by:

    1. Zenghui Huo & Mei Zhang, 2023. "Multidimensional Deprivation and Subgroup Heterogeneity of Rural Households in China: Empirical Evidence from Latent Variable Estimation Methods," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 165(3), pages 975-997, February.
    2. Mei Zhang & Xinliang Wang, 2023. "Measurement of Common Prosperity of Chinese Rural Households Using Graded Response Models: Evidence from Zhejiang Province," IJERPH, MDPI, vol. 20(5), pages 1-16, March.
    3. Zexian Gu & Xiaoqing Zhao & Pei Huang & Junwei Pu & Xinyu Shi & Yungang Li, 2023. "Identification of Multi-Dimensional Relative Poverty and Governance Path at the Village Scale in an Alpine-Gorge Region: A Case Study in Nujiang, China," IJERPH, MDPI, vol. 20(2), pages 1-19, January.
    4. Nick Bailey & Anne-Catherine Guio, 2022. "Adaptive Deprivation Scales in a Multi-National Context: The European Child Deprivation Indicators," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 15(6), pages 2335-2362, December.
    5. Keming Huang & Fangzhou Xia, 2023. "Classification of Rural Relative Poverty Groups and Measurement of the Influence of Land Elements: A Questionnaire-Based Analysis of 23 Poor Counties in China," Land, MDPI, vol. 12(4), pages 1-23, April.
    6. Michail Moatsos & Achillefs Lazopoulos, 2024. "Stress-testing the international poverty line and the official global poverty statistics," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.

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