OPHI’s Suman Seth and Sabina Alkire have co-authored a new working paper, titled ‘Measuring and Decomposing Inequality among the Multidimensionally Poor Using Ordinal Data: A Counting Approach’.
In the paper, Seth and Alkire explore the advantages and costs of adjusting poverty measures to be sensitive to inequality among the multidimensionally poor. They go on to propose a separate decomposable inequality measure – a positive multiple of variance – to capture inequality in deprivation counts among the poor and decompose across population subgroups.
Two illustrations using Demographic Health Survey data sets are provided to demonstrate how this inequality measure adds important information to the adjusted headcount ratio poverty measure in the Alkire Foster class of measures.
You can read OPHI Working Paper 68 here.