Working Paper: 07

Counting and Multidimensional Poverty Measurement

This paper proposes a new methodology for multidimensional poverty measurement consisting of an identification method ρκ that extends traditional approaches, and a class of poverty measures Mα that satisfies several desirable properties including decomposability. Our identification step employs two forms of cutoff: one within each dimension and a second across dimensions that identifies the poor by counting their deprivations. We aggregate using Foster-Greer-Thorbecke measures adjusted for multidimensionality. Our adjusted headcount ratio is well suited for use with ordinal data. Examples from Indonesia and the US illustrate our methodology.

Citation: Alkire, S. & Foster, J. (2007, revised in 2008). Counting and multidimensional poverty measurement. OPHI Working Paper 7, University of Oxford.