Deprivation and the Dimensionality of Welfare: A Variable-Selection Cluster-Analysis Approach

German Caruso, Walter Sosa-Escudero and Marcela Svarc
Authors registered in the RePEc Author Service: Walter Sosa Escudero ()

Review of Income and Wealth, 2015, vol. 61, issue 4, 702-722

Abstract: type="main">

We approach the problems of measuring the dimensionality of welfare and that of identifying the multidimensionally poor, by first finding the poor using the original space of attributes, and then reducing the welfare space. The starting point is the notion that the “poor” constitutes a group of individuals that are essentially different from the “non-poor” in a truly multidimensional framework. Once this group has been identified through a clustering procedure, we propose reducing the dimension of the original welfare space using recent blinding methods for variable selection. We implement our approach to the case of Latin America based on the Gallup World Poll, which contains ample information on many dimensions of welfare.

Date: 2015
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Working Paper: Deprivation and the Dimnensionality of Welfare: A Variable-Selection Cluster-Analysis Approach (2011)
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