Unpacking the MPI : A Decomposition Approach of Changes in Multidimensional Poverty Headcounts

Multidimensional measures of poverty have become standard as complementary indicators of poverty in many countries. Multidimensional poverty calculations typically comprise three indices: the multidimensional headcount, the average deprivation shar...

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Main Authors: Pérez Pérez, Jorge Eduardo, Rodriguez Castelan, Carlos, Trujillo, Jose Daniel, Valderrama, Daniel
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2015
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2015/12/25669944/unpacking-mpi-decomposition-approach-changes-multidimensional-poverty-headcounts
http://hdl.handle.net/10986/23478
id okr-10986-23478
recordtype oai_dc
spelling okr-10986-234782021-04-23T14:04:15Z Unpacking the MPI : A Decomposition Approach of Changes in Multidimensional Poverty Headcounts Pérez Pérez, Jorge Eduardo Rodriguez Castelan, Carlos Trujillo, Jose Daniel Valderrama, Daniel WASTE UNEMPLOYMENT EMPLOYMENT EQUITY HOUSEHOLD SIZE CROSS SECTION DATA POVERTY INDEX POVERTY MEASUREMENT INCOME LONGITUDINAL DATA CARE POVERTY RATES HEALTH EDUCATION COUNTERFACTUAL HEALTH INSURANCE INDEXES HEALTH EQUILIBRIUM RURAL MEASUREMENT SAMPLE SIZE CHILD LABOUR NUTRITION QUALITY SURVEYS MEASURES QUALITY OF LIFE POVERTY MEASURES INSURANCE POVERTY REDUCTION WEIGHT POVERTY INDICATORS CHILDREN EXERCISES STATISTICS EDUCATIONAL ATTAINMENT POVERTY HOUSEHOLD HEAD INCOME GROWTH DESCRIPTIVE STATISTICS INCIDENCE POPULATION OBSERVATION POVERTY DYNAMICS ACCESS TO HEALTH SERVICES HOUSEHOLD INCOME POOR POOR INDIVIDUALS INDICATORS RESEARCH OUTCOMES INDICATORS OF POVERTY HEALTH SERVICES POVERTY ANALYSIS HUMAN DEVELOPMENT INEQUALITY Multidimensional measures of poverty have become standard as complementary indicators of poverty in many countries. Multidimensional poverty calculations typically comprise three indices: the multidimensional headcount, the average deprivation share among the poor, and the adjusted headcount ratio. While several decomposition methodologies are available for the last index, less attention has been paid to decomposing the multidimensional headcount, despite the attention it receives from policy makers. This paper proposes an application of existing methodologies that decompose welfare aggregates--based on counterfactual simulations--to break up the changes of the multidimensional poverty headcount into the variation attributed to each of its dimensions. This paper examines the potential issues of using counterfactual simulations in this framework, proposes approaches to assess these issues in real applications, and suggests a methodology based on rank preservation within strata, which performs positively in simulations. The methodology is applied in the context of the recent reduction of multidimensional poverty in Colombia, finding that the dimensions associated with education and health are the main drivers behind the poverty decline. 2015-12-22T17:00:39Z 2015-12-22T17:00:39Z 2015-12 Working Paper http://documents.worldbank.org/curated/en/2015/12/25669944/unpacking-mpi-decomposition-approach-changes-multidimensional-poverty-headcounts http://hdl.handle.net/10986/23478 English en_US Policy Research Working Paper;No. 7514 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Colombia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic WASTE
UNEMPLOYMENT
EMPLOYMENT
EQUITY
HOUSEHOLD SIZE
CROSS SECTION DATA
POVERTY INDEX
POVERTY MEASUREMENT
INCOME
LONGITUDINAL DATA
CARE
POVERTY RATES
HEALTH EDUCATION
COUNTERFACTUAL
HEALTH INSURANCE
INDEXES
HEALTH
EQUILIBRIUM
RURAL
MEASUREMENT
SAMPLE SIZE
CHILD LABOUR
NUTRITION
QUALITY
SURVEYS
MEASURES
QUALITY OF LIFE
POVERTY MEASURES
INSURANCE
POVERTY REDUCTION
WEIGHT
POVERTY INDICATORS
CHILDREN
EXERCISES
STATISTICS
EDUCATIONAL ATTAINMENT
POVERTY
HOUSEHOLD HEAD
INCOME GROWTH
DESCRIPTIVE STATISTICS
INCIDENCE
POPULATION
OBSERVATION
POVERTY DYNAMICS
ACCESS TO HEALTH SERVICES
HOUSEHOLD INCOME
POOR
POOR INDIVIDUALS
INDICATORS
RESEARCH
OUTCOMES
INDICATORS OF POVERTY
HEALTH SERVICES
POVERTY ANALYSIS
HUMAN DEVELOPMENT
INEQUALITY
spellingShingle WASTE
UNEMPLOYMENT
EMPLOYMENT
EQUITY
HOUSEHOLD SIZE
CROSS SECTION DATA
POVERTY INDEX
POVERTY MEASUREMENT
INCOME
LONGITUDINAL DATA
CARE
POVERTY RATES
HEALTH EDUCATION
COUNTERFACTUAL
HEALTH INSURANCE
INDEXES
HEALTH
EQUILIBRIUM
RURAL
MEASUREMENT
SAMPLE SIZE
CHILD LABOUR
NUTRITION
QUALITY
SURVEYS
MEASURES
QUALITY OF LIFE
POVERTY MEASURES
INSURANCE
POVERTY REDUCTION
WEIGHT
POVERTY INDICATORS
CHILDREN
EXERCISES
STATISTICS
EDUCATIONAL ATTAINMENT
POVERTY
HOUSEHOLD HEAD
INCOME GROWTH
DESCRIPTIVE STATISTICS
INCIDENCE
POPULATION
OBSERVATION
POVERTY DYNAMICS
ACCESS TO HEALTH SERVICES
HOUSEHOLD INCOME
POOR
POOR INDIVIDUALS
INDICATORS
RESEARCH
OUTCOMES
INDICATORS OF POVERTY
HEALTH SERVICES
POVERTY ANALYSIS
HUMAN DEVELOPMENT
INEQUALITY
Pérez Pérez, Jorge Eduardo
Rodriguez Castelan, Carlos
Trujillo, Jose Daniel
Valderrama, Daniel
Unpacking the MPI : A Decomposition Approach of Changes in Multidimensional Poverty Headcounts
geographic_facet Colombia
relation Policy Research Working Paper;No. 7514
description Multidimensional measures of poverty have become standard as complementary indicators of poverty in many countries. Multidimensional poverty calculations typically comprise three indices: the multidimensional headcount, the average deprivation share among the poor, and the adjusted headcount ratio. While several decomposition methodologies are available for the last index, less attention has been paid to decomposing the multidimensional headcount, despite the attention it receives from policy makers. This paper proposes an application of existing methodologies that decompose welfare aggregates--based on counterfactual simulations--to break up the changes of the multidimensional poverty headcount into the variation attributed to each of its dimensions. This paper examines the potential issues of using counterfactual simulations in this framework, proposes approaches to assess these issues in real applications, and suggests a methodology based on rank preservation within strata, which performs positively in simulations. The methodology is applied in the context of the recent reduction of multidimensional poverty in Colombia, finding that the dimensions associated with education and health are the main drivers behind the poverty decline.
format Working Paper
author Pérez Pérez, Jorge Eduardo
Rodriguez Castelan, Carlos
Trujillo, Jose Daniel
Valderrama, Daniel
author_facet Pérez Pérez, Jorge Eduardo
Rodriguez Castelan, Carlos
Trujillo, Jose Daniel
Valderrama, Daniel
author_sort Pérez Pérez, Jorge Eduardo
title Unpacking the MPI : A Decomposition Approach of Changes in Multidimensional Poverty Headcounts
title_short Unpacking the MPI : A Decomposition Approach of Changes in Multidimensional Poverty Headcounts
title_full Unpacking the MPI : A Decomposition Approach of Changes in Multidimensional Poverty Headcounts
title_fullStr Unpacking the MPI : A Decomposition Approach of Changes in Multidimensional Poverty Headcounts
title_full_unstemmed Unpacking the MPI : A Decomposition Approach of Changes in Multidimensional Poverty Headcounts
title_sort unpacking the mpi : a decomposition approach of changes in multidimensional poverty headcounts
publisher World Bank, Washington, DC
publishDate 2015
url http://documents.worldbank.org/curated/en/2015/12/25669944/unpacking-mpi-decomposition-approach-changes-multidimensional-poverty-headcounts
http://hdl.handle.net/10986/23478
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