coneval .gob.mx

1. MultidmensionalPovertyMeasurement: TheMexican Wave Gonzalo Hernández Licona March, 2014 www.coneval.gob.mx

2. Measuring poverty according to the Social Development Law (2005) Dimensions for poverty measurement • Current income per capita • Educational gap • Access to health services • Access to social security • Quality of dwelling • Dwelling’s basic services • Access to food Social rights’ approach National, State and Municipalitylevel

3. Advantages of the social rights approach • It solves problems of weights and thresholds: • Since human rights are indivisible & interdependent, they all have the same relative importance. They have the same weight. • The Mexican regulation sets thresholds for several dimensions. • Thepoverty measurement has a normativeapproach.

4. Main features Without Deprivations Income Income cut-off Poor • Education • Health services • Social security • Quality dwelling • Dwelling´s services • Access to food Deprivations 5 6 4 1 2 3 0 Social Rights

5. Moderate poor Poverty identification Vulnerable people by social deprivations Notpoor and not vulnerable Income Income cut-off Public policy Vulnerable people by income Minimum Income Cut-off Extreme poor Deprivations 5 6 4 1 2 3 0 Social Rights

6. Total population 2010 (112.6 millions) Notpoor and not vulnerable 21.8 million 19.3% Urban = $2,114 Rural = $1,329 EWL Income Moderatepoor 35.8% (40.3 million) 2.1 deprivationsonaverage Urban = $978 Rural = $684 MWL 10.4% (11.7 million) 3.7 deprivationsonaverage Extreme poor Deprivations 5 4 6 1 2 Poverty 3 0 46.2 % 52.0 millions 2.5 deprivations onaverage Social Rights Source: estimatesby CONEVAL basedon MCS-ENIGH 2010.

7. Change in multidimensional poverty 2008-2010. Mexico Millions of People Poverty Nr of peoplewithlowincome Educational gap Access tohealthservices Access to social security Deprivations Quality of housing Basic services in thehouse Access tofood Fuente: estimaciones del CONEVAL con base en el MCS-ENIGH 2008 y 2010

8. Using the multidimensional approach for policy purposes • Measuring poverty in a multidimensional way helps governments to do better in terms of policy • It is now possible to evaluate the effect of social policy not only on income poverty but also on specific social deprivations. • Poverty is a multidimensional phenomenon and must be tackled and measured in a multidimensional way

9. Annex

10. Total population 2010 (112.6 millions) Notpoor and not vulnerable 21.8 million 19.3% Vulnerable peopleby social deprivation 32.3 million 28.7% 1.9 deprivationsonaverage Wellbeing Urban = $2,114 Rural = $1,329 LBE Income Moderatepoor 35.8% (40.3 million) 2.1 deprivationsonaverage Vulnerable peoplebyincome 6.5 million 5.8% Urban = $978 Rural = $684 LBM 10.4% (11.7 million) 3.7 deprivationonaverage Extreme poor Deprivations 5 4 6 1 2 Poverty 3 0 46.2 % 52.0 millions 2.5 deprivations onaverage Social Rights Source: estimatesby CONEVAL basedon MCS-ENIGH 2010.

11. Social Deprivations Educational gap [20.6%] Access tohealthservices[31.8%] Access to social security[60.7%] Quality of dwelling[15.2%] Access tohousingbasicservices[16.5%] Access tofood[24.9%] Source: estimations of CONEVAL basedon MCS-ENIGH 2010.

12. Economicwellbeing Incomesbelow EWL [52.0%] IncomesbelowEMWL [19.4%] Source: estimations of CONEVAL basedon MCS-ENIGH 2010.

13. Thresholds

14. Howto determine thresholds? Social rights Use of legal norms, if they exist Legal criteria Consultationwithspecialists Experts criteria Publicinstitutions Health, Housing, Social Security, Education

15. How to determine thresholds of social deprivations? She or he is not attending a formal educational center Populationaged 3-15 years Educational gap • When someone was born before • 1981 and lacks the mandatory • basic education current at the • time he or she should have • completed it. Primary • When someone was born • before 1982 and lacks the • mandatory basic education • current at the time she should • have completed it. Secondary Populationaged 16 yearsorolder

16. How to determine thresholds of social deprivations? When a personisnotenrolled in ornotentitledtoreceivemedicalservicesfrom: Popular Insurance A social securitypublicinstitution Accestohealth services A privatemedical service

17. How to determine thresholds of social deprivations? • If the worker does not receive medical services as a work benefit or through voluntary enrollment and a retirement investment plan Direct access • If a person is not enrolled in an institution that provides medical services by voluntary enrollment. • If the spouse,child, parent, -law of the head • of household is not enrolled in an medical institution Familynucleus Access to social security Otherfamilynucleus and voluntaryenrollment If the person does not have a relative who has access to social security If the person is not beneficiary of a social program of pensions for senior citizens

18. How to determine thresholds of social deprivations? When the material is cardboard sheets or residue material Roofs When the material is mud or daub&wattle; reed, bamboo or palm; cardboard, metal or asbestos sheets; residue material Quality of living spaces Walls When the material of the floor is soil Floors When the ratio of people per room is greater than 2.5 Overcrowding

19. How to determine thresholds of social deprivations? • When it is obtained from a well, river, lake, stream, or truck. • When piped water is carried from another dwelling or gotten at a public faucet or hydrant Water Housingaccess tobasicservices • No drainage service. • When the drain is connected to pipes leading to a river, lake, sea, ravine or crack Drainageservice Electricity When there is no electricity

20. How to determine thresholds of social deprivations? Food security Food insecurity Acessto food Slight Moderate Severe Deprivationduetolack of accesstofood

21. How to determine thresholds? Economic Wellbeing Foodbasket Non foodbasket Economicwellbeing Minimumeconomicwellbeing line Necessarygoods & services Changesoncurrent consumption patterns Caloricsrequirements & micronutrients Goods and services have an income elasticity<1 Rural & urbansettings Rural & urbansettings

22. Estimates for incidence, depth and intensity (average number of deprivations) Population groups decomposable Dimension decomposable Comparability across time In the space of social rights, equivalent to M0=H·A Rigorous Social Deprivation Index (SDI) and MP measures: satisfy a set of axiomatic properties (Alkire y Foster, 2007) the SDI also satisfies the validity, reliability and additivity properties (Gordon; 2007,2010) Properties