Measuring the depth of multidimensional poverty with ordinal data

Fernando Flores Tavares

Papers from arXiv.org

Abstract: Standard multidimensional poverty gap measures are seldom applied because they require cardinal indicators. This paper proposes a positional poverty gap index that captures the depth of deprivations even when indicators are ordinal. Drawing on the fuzzy set literature, the method scores each deprived individual by their positional distance from the top of the empirical distribution of each indicator, normalized by the same distance for the most deprived individual. An axiomatic characterization shows that, once deprivation is built up additively from pairwise comparisons of achievements, this positional depth score is the only one consistent with ordinal data. Within the Alkire-Foster counting framework, the measure preserves the identification and aggregation structure and, under a fixed reference distribution, satisfies the main axiomatic properties. The result is a meaningful and policy-relevant depth index for multidimensional poverty.

Date: 2026-03, Revised 2026-08
New Economics Papers: this item is included in nep-ecm
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