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Comparing Monetary and Multidimensional Poverty in Germany

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  • Nicolai Suppa

Abstract

This paper compares Germany's official income-based poverty measure with a multidimensional poverty index based on the Alkire-Foster method. For their comparative assessment, I employ the capability approach as a conceptual framework. I find both measures agree on certain aspects, such as socio-demographic risk factors. However, I also document a substantial mismatch in who is deemed poor, which seems to originate from inherent, conceptual features of the measures. More generally, the results also suggest additional individual income reduces multidimensional poverty, if only at a decreasing rate. Examining regional variations, I find that the measures do not agree about trends in poverty and that there is no clear-cut link between aggregate income and multidimensional poverty. I conclude that, despite some basic agreement, the choice of poverty measure makes a difference, with properly designed multidimensional poverty indices having the advantage of better reflecting human well-being.

Suggested Citation

  • Nicolai Suppa, 2016. "Comparing Monetary and Multidimensional Poverty in Germany," OPHI Working Papers 103, Queen Elizabeth House, University of Oxford.
    • Handle: RePEc:qeh:ophiwp:ophiwp103
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    Citations

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    Cited by:

    1. Lukas Salecker & Anar K. Ahmadov & Leyla Karimli, 2020. "Contrasting Monetary and Multidimensional Poverty Measures in a Low-Income Sub-Saharan African Country," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 151(2), pages 547-574, September.
    2. Rodrigo García Arancibia & Ignacio Girela, 2024. "Graphical Representation of Multidimensional Poverty: Insights for Index Construction and Policy Making," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 172(2), pages 595-634, March.
    3. Nicolai Suppa, 2018. "Towards a multidimensional poverty index for Germany," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 45(4), pages 655-683, November.
    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. Rodrigo García Arancibia & Ignacio Girela, 2021. "Conditional Associations of Multidimensional Poverty Indicators in Argentina: A Graphical Representation," Asociación Argentina de Economía Política: Working Papers 4478, Asociación Argentina de Economía Política.
    6. Klasen, Stephan & Villalobos, Carlos, 2020. "Diverging identification of the poor: A non-random process. Chile 1992–2017," World Development, Elsevier, vol. 130(C).
    7. Antonella Biscione & Dorothée Boccanfuso & Raul Caruso, 2020. "A Hypothesis on Poverty Change in Albania (2007-2016)," Rivista Internazionale di Scienze Sociali, Vita e Pensiero, Pubblicazioni dell'Universita' Cattolica del Sacro Cuore, vol. 128(3), pages 301-320.
    8. El Azami Hicham & Xia Qingjie, 2024. "Static and Dynamic Comparison of Monetary and Non-monetary Multidimensional Poverty: Evidence from Morocco (Article)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 63(2), pages 161-184.
    9. Khaufelo Raymond Lekobane, 2022. "Does it matter which poverty measure we use to identify those left behind? Investigating poverty mismatch and overlap for Botswana," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 24(1), pages 171-196, June.

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