Monetary and Multidimensional Poverty: Correlations, Mismatches and Joint Distributions

Martin Evans, Ricardo Nogales and Matthew Robson
Authors registered in the RePEc Author Service: Ricardo Nogales () and Matthew Robson ()

No 133, OPHI Working Papers from Queen Elizabeth House, University of Oxford

Abstract: We consider the relationships between multidimensional and monetary poverty indices in international and national poverty profiles, and evaluate the empirical consequences of identifying poor people relying on a combination of both approaches. Taking first a cross-country perspective, focusing on the developing world, we find that the incidence of poverty according to money metrics and the global MPI, a non-monetary measure of poverty, are correlated. This correlation breaks down in poorer countries. We use micro-data from six countries to study the joint densities of monetary and multidimensional welfare and the poverty identification mismatches for a comprehensive array of poverty line pairs. Mismatches are important, particularly, again, in the poorer countries. Although mismatches could be solved by combining both approaches in a dual cutoff poverty measure, the choice of the monetary poverty line remains a considerable issue as it changes the non-monetary composition of poverty.

Date: 2020-07
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Citations: View citations in EconPapers (6)

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