Multidimensional and Fuzzy Measures of Poverty and Inequality at National and Regional Level in Mozambique

Vincenzo Salvucci, Gianni Betti and Francesca Gagliardi ()

Department of Economics University of Siena from Department of Economics, University of Siena

Abstract: This study provides a step-by-step account of how fuzzy measures of non-monetary deprivation and also monetary poverty may be constructed based on survey data such as those from the Mozambican Household Budget Survey 2008-09 (IOF08). For nonmonetary deprivation, six dimensions are identified using explanatory and confirmatory factor analyses, and a weighting system is applied for the aggregation of individual items into the dimension they represent. An application on Mozambique is conducted using the Household Budget Survey 2008-09 (IOF08) data: estimates are provided at national level and also disaggregated at provincial and urban/rural level. Standard errors are provided using a recent methodology based on Jack-knife Repeated Replication. Our results contrast with previous findings based solely on Head Count statistics and give a more complete mapping of poverty in Mozambique. Monetary and non-monetary deprivation seem to have very different distribution patterns, especially when analysed at sub-national level and by area of residence. Disaggregated Head Count statistics produce rankings of provinces and urban/rural areas that greatly differ from estimates based on non-monetary dimensions. In particular, the Northern and Central provinces suffer from non-monetary deprivation significantly more than the South, and the urban/rural deprivation gap widens in favour of urban areas when non-monetary dimensions are considered. Housing conditions and quality, and possession of less affordable durable goods emerge as the most unequally distributed non-monetary dimensions.

Keywords: well-being; poverty; regional indicators; standard errors; Mozambique (search for similar items in EconPapers)
JEL-codes: D63 I32 R13 (search for similar items in EconPapers)
Date: 2012-07
New Economics Papers: this item is included in nep-afr
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:usi:wpaper:649

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