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Multidimensional poverty measurement for EU-SILC countries Sabina Alkire, Mauricio Apablaza, Euijin Jung UNECE meeting, Geneva May 6, 2015. Background Methodology Three possible Measures Results M 0 , H , A Dimensional breakdown Dynamic Analyses Decomposition
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Multidimensional poverty measurement for EU-SILC countries Sabina Alkire, Mauricio Apablaza, Euijin Jung UNECE meeting, Geneva May 6, 2015
Background • Methodology • Three possible Measures • Results • M0 , H , A • Dimensional breakdown • Dynamic Analyses • Decomposition • Recommendations for EU-SILC survey
1. Background • Long tradition of counting measures • Severe Material Deprivation Indicator • EU-2020 • Whelan Nolan Maitre (2014) • This paper: seeks to illustrate the kinds of analyses that could be possible by implementing an AF methodology using limited variables across cross-sectional data 2006-2012.
Counting-based Identification 1 • Select Dimensions, Indicators, Weights, and Cutoffs • Create deprivation profiles per person • Identify who is poor e.g. if score > 34% 2 3
FGT-based Aggregation Poverty measure is the product of two components: 1) Prevalence ~ the percentage of people who are poor, or the headcount ratio H. 2) Intensityof people’s deprivation ~ the average share of dimensions in which poore people are deprived A. M0 = H × A
3. Experimental measures • 3 measures constructed • Units of identification and of analysis: individual 16+ • Four, Five, and Six Dimensions: • Health • Education • Living Environment • Living Standards (all EU-2020 indicators not below) • Material Deprivation • Quasi Joblessness • Countries aggregated if data covers 6 waves 2006-12
3. Experimental measures • Indicators: 12 • Same in all measures • Health: 4, Env: 4; Educ: 1, EU-2020: 3 • Weights: Differ for each measure • 1: EU-2020 as one dimension; equal weights • 2: EU-2020 = [AROP + QJ] and [Severe Mat Dep] • 3: EU-2020: one dimension each • Poverty Cutoffs: Strictly more than 1 (1,2) or 2 (3) Ds. • 26% in measure 1, 21% in measure 2; 34% in M 3
Table 5: Dimensions, Indicators and Weights for Measures (M) 1, 2 and 3
Measures 1-3: Weights & Poverty cutoff k 34% 26% 21%
Table 3: Correlations (Cramers’ V) across uncensored deprivation headcount ratios
Table 4: Redundancy values across uncensored deprivation headcount ratios Redundancy: ratio of percentage deprived in both indicators to lower of the two total deprivation headcount ratios
Figure 2: Adjusted Headcount Ratio (M0) by poverty cut-off 2006-2009-2012 Measure 1 Measure 2 Measure 3 M0 M0 M0 k k k Poverty reduced 2006-12, but not necessarily significantly
Figure 1: Measure 1 Adjusted Headcount Ratio (M0) by poverty cut-off 2006-2009-2012 2006 2009 2012 M0 M0 M0 k k k Southern Europe is always poorest k=1-40%.
Figure 4: Dimensional Breakdown SILC selected countries 2006-2009-2012 Headcount ratio: 4-43% M1 5-39% M2 1-18% M3
Figure 5: Dimensional Decomposition Measure 1 k=26% by country (2009) ranked from poorest
Figure 6: Dimensional Decomposition Measure 2 k=21% by country (2009), ranked from poorest
Figure 7: Dimensional Decomposition Measure 3 k=34% by country (2009), ranked from poorest
Figure 8: Raw and Censored Headcount Ratios Measure 3 k=34% for Norway, Hungary and Portugal (2009)
Figure 10: Adjusted Headcount Ratio for all Measures by country (2006-2012) Measure 1 k=26% Measure 2 k=21% Measure 3 k=34%
Figure 11: Poverty contributions by country, population-weighted Measure 1
Figure 12: Bubble graph of changes Measure 1 by H and A 2006-2009-2012
Figure 13: Multidimensional Poverty (M0) by Measure, Gender and Year
Figure 14b: Contributions to National Multidimensional Poverty (M0) by Gender 2012 (Measure 1)
Figure 16a: Aggregate Multidimensional Poverty (M0) by Gender and Year Measure 2 Women have higher deprivations overall in education and health
Figure 16b: Multidimensional Poverty (M0) by Gender and country Measure 1 (A) Women always have higher deprivations in education and health
Figure 16b: Multidimensional Poverty (M0) by Gender and country Measure 1 (B) Here there are exceptions. For ed: DE, SE, IS, and NO.
Figure 17a: Percentage contributions to Multidimensional Poverty (M0) by age and year Measure 1 (A) Youth contribution highest in UK; NO 2012; Elder high
Figure 17a: Percentage contributions to Multidimensional Poverty (M0) by age and year Measure 1 (B) France has distinctively high elder poverty 65+
Figure 17b: Percentage contributions to Multidimensional Poverty (M0) by Age, Dimension and Year Measure 1
Recommendations for EU-SILC survey questions • Highest ISCED level of schooling attained : levels do not have the same number of years across countries or; or, at times, across age cohorts or subnational regions. Recommendation: supplement with the number of years of schooling completed, to facilitate comparisons.
Recommendations for EU-SILC survey • Self-Assessed Health: cutoff points may be differently defined according to age, gender, culture, language, health knowledge or aspirations, making comparisons difficult. Recommendation: replace with objective indicators, or with more focused self-report on health functionings (mppn.org) – or health states.
Recommendations for EU-SILC survey • Perception of Crime: responses have been documented to be inversely related to objective incidents of violence. Recommendation: replace with reported violence against person or property in last 12 months and the severity of that violence (mppn.org)
In Summary • Constructs 3 Multidimensional Poverty measures • Report poverty, headcount and intensity • Compares these on aggregate 2006-2012 • Decomposes by regions, countries – across time. • Analyses decomposition by dimension • Analyses changes over time by H and A • Decomposes results by gender • Decomposes results by age category • Recommends gathering comparable social indicators • Purpose: illustrates a measurement methodology and the analyses it can generate.
1. Background • Changes from previous draft • Three new measures • Changed indicator definitions • Standard errors • Registry data countries included • Proposals for EU-SILC survey design • Comparable questions on Education, Health, and Living Environment.
New: dimensional breakdown The poverty measure is also the sum of the weighted ‘censored headcounts’ of each indicator Censored Headcount for dimension j: The percentage of the population that is identified as poor, and is deprived in indicator j.
2. Methodology • Select Dimensions, Indicators and Values • Apply Deprivation cutoffs for each indicator • Create weighted deprivation score per person • Apply a poverty cutoff to identify who is poor • Aggregate information about poverty in a measure We use Alkire Foster M0 measure Reflects prevalence (H), intensity (A) Key Properties for analysis:subgroup decomposability, dimensional monotonicity, dimensional breakdown (post-identification), ordinality. Alkire, Sabina and James Foster J. of Public Economics 2011
Figure 3: Headcount ratio and intensity SILC selected countries 2006-2009-2012 Measure 1 k=26% Measure 2 k=21% Measure 3 k=34%
Figure 9: Changes in the adjusted headcount ratio M0 by region over time Measure 1 k=26% Measure 2 k=21% Measure 3 k=34% M0 M0 M0 k k k
Figure 14a: Contributions to National Multidimensional Poverty (M0) by Gender 2006 (Measure 1)
Figure 15: Gender Decomposition of M0 by Country 2006 and 2012 (Measure 3)