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Towards a Multidimensional Poverty Index for Germany

Nicolai Suppa ()

No 541, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: This paper compiles a multidimensional poverty index for Germany. Drawing on the capability approach as conceptual framework, I apply the Alkire-Foster method using German panel data. I suggest new operationalizations for two dimensions: social participation and practical reason, the latter drawing on recent findings in experimental economics. The results are consistent with earlier findings, but also reveal several new insights. Specifically, numerous decompositions of the poverty index prove helpful in better tracking and understanding developments. Moreover, I find poor individuals to be adversely affected by general trends in deprivation indicators. Comparing multidimensional and income-based methods, I find only a modest overlap of people considered as poor by both approaches. Moreover, I address the role of income as a dimension in multidimensional poverty indices.

Keywords: multidimensional poverty; Alkire-Foster method; capability approach; SOEP (search for similar items in EconPapers)
JEL-codes: I3 I32 D63 H1 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur and nep-hme
Date: 2015
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https://www.econstor.eu/bitstream/10419/106992/1/817469257.pdf (application/pdf)

Related works:
Journal Article: Towards a multidimensional poverty index for Germany (2018) Downloads
Working Paper: Towards a Multidimensional Poverty Index for Germany (2015) Downloads
Working Paper: Towards a Multidimensional Poverty Index for Germany (2015) Downloads
Working Paper: Towards a Multidimensional Poverty Index for Germany (2015) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:541

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