A Distributional Analysis of Uni-and Multidimensional Poverty and Inequalities in Ethiopia

Mekonnen Bersisa () and Almas Heshmati ()
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Mekonnen Bersisa: Ambo University Woliso Campus

Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, 2021, vol. 155, issue 3, No 3, 805-835

Abstract: Abstract This study analyzes uni-and multidimensional poverty and inequalities in rural and small towns in Ethiopia. Unlike the unidimensional measure, the multidimensional measure of poverty shows all the channels through which poverty may manifest itself; it also shows the extent of deprivation. The analysis uses 6 dimensions with 14 indicators to construct a multidimensional index of poverty and inequalities using Ethiopian Households’ Socioeconomic Survey dataset. The study also uses multiple correspondence analyses for determining relative weights in computing a multidimensional index and conducts a stochastic dominance analysis of distribution of poverty for different population segments. The paper sheds light on the degree of inequalities in consumption expenditure and multidimensional deprivations. In addition, it also compares the degree of poverty using the conventional measure of poverty and the multidimensional approach. It also examines the determinants of household poverty status using both unidimensional and multidimensional measures using the logit model. The results show that the intensity, severity, and depth of poverty varies substantially across the 2 measures. The unidimensional measure of poverty shows that 36 percent of the households were poor as compared to 46 percent multidimensionally poor households. Moreover, demographic, regional, and household heads’ characteristics also affect households’ poverty status.

Keywords: Multidimensional poverty; Inequality; Deprivation; Factor analysis; Stochastic dominance; Ethiopia (search for similar items in EconPapers)
JEL-codes: C25 C31 C43 D31 I32 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (9)

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DOI: 10.1007/s11205-021-02606-w

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