The probability of multidimensional poverty in the European Union

Paolo Liberati, Giuliano Resce () and Francesca Tosi

No 1, Quaderni di Dipartimento from Department of Statistics, University of Bologna

Abstract: This paper evaluates multidimensional poverty in European countries introducing two main novelties compared with the previous literature: first, the dimensions of poverty are selected on the basis of the shared values included in the Charter of Fundamental Rights of the European Union; second, the whole space of feasible weights is used to summarise the multidimensional information, in order to remain agnostic about the importance given to the different deprivations. Using data from four waves of EU-SILC, the methodological innovations introduced here have allowed to produce a family of measures that capture the individual probability of being multidimensionally poor. Individual probabilities are then used to analyse the within and between distribution of multidimensional poverty in ten countries. Finally, they get combined with the generalised Lorenz dominance techniques in order to derive socially preferred distributions with the minimum load of value judgments. The novel methods proposed in this analysis allow to move from a dual definition of poverty, where poor and non-poor individuals are classified in a mutually exclusive context, to a continuous measure of deprivation, which allows to capture both the extensive and intensive margin of multidimensional poverty.

Keywords: Multidimensional Poverty; Charter of Fundamental Rights; Hierarchy Stochastic Multicriteria Acceptability Analysis; Povertà multidimensionale; Carta dei Diritti Fondamentali; Analisi Stocastica di Accettabilità Multicriterio (search for similar items in EconPapers)
Pages: 40
Date: 2020
New Economics Papers: this item is included in nep-eur and nep-pke
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Citations: View citations in EconPapers (2)

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