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Approaches to using MICS for Equity/Poverty Analysis

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Presentation on theme: "Approaches to using MICS for Equity/Poverty Analysis"— Presentation transcript:

1 Approaches to using MICS for Equity/Poverty Analysis
Multiple Indicator Cluster Surveys Data Dissemination - Further Analysis Workshop Approaches to using MICS for Equity/Poverty Analysis MICS4 Data Dissemination and Further Analysis Workshop

2 Multidimensional Poverty Indices
Outline Consumption/income poverty Wealth Index Bristol Child Deprivation Index Multidimensional Poverty Index (MPI) New Development (MODA, CDS) Critics

3 Multidimensional Poverty Indices -Background
Once upon a time… ….INCOME/CONSUMPTION POVERTY Three main decisions: 1. How do we assess individual well-being or "welfare"? Income or consumption 2. At what level of measured well-being do we say that a person is not poor? Choose poverty lines 3. How do we aggregate individual indicators of well-being into a measure of poverty? FGT poverty measures

4 Multidimensional Poverty Indices - Background
UN General Assembly Definition of Child Poverty, 10th January 2007 “Children living in poverty are deprived of nutrition, water and sanitation facilities, access to basic health care services, shelter, education, participation and protection, and that while a severe lack of goods and services hurts every human being, it is most threatening and harmful to children, leaving them unable to enjoy their rights, to reach their full potential and to participate as full members of the society”

5 Multidimensional Poverty Indices WEALTH INDEX
Use information on assets or household possessions It takes a large number of assets that may not tell us much individually, but are correlated since they are all related to an underlying factor – in this case, “wealth” Generate weights (factor scores) for each of the assets through principal components analysis Weights summed by household, household members ranked according to the total score of the household in which they reside Divide the households into quintiles

6 Multidimensional Poverty Indices WEALTH INDEX
Number of persons per sleeping room Material of dwelling floor Material of the roof Material of the walls Fuel used for cooking Electricity Radio Television Mobile telephone Non-mobile telephone Refrigerator Watch Bicycle Motorcycle/scooter Animal-drawn cart Car/truck Boat Source of drinking water Type of sanitation facility Ownership of animals Ownership of land Furniture Additional household items

7 Multidimensional Poverty Indices WEALTH INDEX
Long-term wealth versus current economic status Adjustment for household size? How to deal with public services? Does the asset index reflect community variables (especially locally available infrastructure such as electricity for lighting or piped water) rather than household specific variables? Urban bias Strength of the index when comparing it over time and across countries

8 Multidimensional Poverty Indices BRISTOL POVERTY MEASURE
Developed by Bristol University - Townsend Centre for International Poverty Research with UNICEF UNICEF's State of the World's Children report 2005 UNICEF launched at the end of 2007 the Global Study on Child Poverty and Disparities that combines the income approach with the Bristol deprivations approach (see As of June 2011, 52 UNICEF Country Offices in seven regions have joined the study. A total of 23 country reports have been produced

9 Multidimensional Poverty Indices
Indicator Shelter More than 5 members per room, or no floor material Sanitation No toilet facility of any kind Water Use of surface water or source more than 30 min away Information No access to radio, television, telephone or newspapers at home Nutrition Severe stunting, wasting or underweight Education Children (7-17) never been to school Health No immunization or no treatment of ARI or diarrhoea

10 Multidimensional Poverty Indices
Children experiencing TWO OR MORE severe deprivations are absolute poor Children experiencing ONE OR MORE severe deprivations are severely deprived 34% of children in the developing world (around 650 million) live in absolute poverty 56% of children in the developing world (over one billion) experience severe deprivation of at least one basic human need

11 Multidimensional Poverty Indices


13 Multidimensional Poverty Indices
Multidimensional Poverty Index (MPI) Developed by Oxford Poverty & Human Development Initiative (Sabina Alkire and James Foster 2007, 2009) 2010 United Nations Development Programme Human Development Report (104 countries)

14 Multidimensional Poverty Indices - MPI

15 Multidimensional Poverty Indices
Domain Indicator Health Any child dead Any adult or child malnourished Education No household member completed 5 years Any child out of school Standard of No electricity Living Unimproved water or clean water more than 30 mins distant Unimproved or shared sanitation Dirt, sand, dung floor Wood, charcoal, dung used as cooking fuel Not owning more than one of: radio, TV, phone, bike, motorbike or a car/truck

16 Multidimensional Poverty Indices
Each dimension is equally weighted: Health = 1/3 Education = 1/3 Standard of Living = 1/3 The MPI combines two aspects of poverty: MPI = H x A Incidence (H) = the percentage of people who are poor, or the headcount Intensity (A) of people’s poverty = the average percentage dimensions in which poor people are deprived

17 MICS4 Regional Workshop
Indicators 1 2 3 4 Weight Household size 7 5 HEALTH At least one member malnourished 1.67 One or more children have died EDUCATION No one has completed five years of schooling At least one school-age child not enrolled LIVING CONDITIONS No electricity 0.56 No access to clean drinking water No access to adeguate sanitation House has dirt floor Household uses “dirty” cooking fuel Household has no car and owns at most one of: bicycle, motorcycle, radio, refrigerator, telephone or television RESULTS Weighted count of deprivation, c 2.22 7.22 3.89 5.00 Is the household poor? c>3 NO YES MICS4 Regional Workshop

18 Multidimensional Poverty Indices
Weighted count of deprivation in household 1: Headcount ratio= (80 percent of people live in poor households) Intensity of poverty= (the average poor person is deprived in 56 percent of the weighted indicators) MPI= H × A = 0.45

19 Multidimensional Poverty Indices
Results: 1.7 billion people, 32% of the total population in 104 countries, are identified as multi-dimensionally poor. 51% live in South Asia and 28% in sub-Saharan Africa MICS4 Regional Workshop


21 MICS4 Regional Workshop
Countries with the highest incidence of poverty tend to have the highest intensity of poverty. MICS4 Regional Workshop

22 Multidimensional Poverty Indices
Deprivation in living standards (the green portion) often contributes more than deprivation in either of the other two dimensions. In most countries, the second biggest contribution comes from educational deprivations.

23 Multidimensional Poverty Indices
MPI and Income Poverty are related PEARSON CORR. $ 1.25/day–MPI = 0.85 More persons are MPI poor than income poor

24 Multidimensional Poverty Indices
MPI at the regional level

25 Multidimensional Poverty Indices
New development… Multiple Overlapping Deprivation Analysis (MODA) (IRC/Unicef) CHILD DEPRIVATION SCORE (UNICEF)

26 Multidimensional Poverty Indices
CRITICS (Ravallion 2011) Indicators likely to be correlated with consumption or income, but they would not capture well the impacts on poor people of economic downturns or quick economic shocks. As data is to be collected from the same survey, the precise indicators used in the MPI are somehow data driven… Indices adding up “apples and oranges” … …how can one contend that the death of a child is equivalent to having a dirt floor, cooking with wood, and not having a radio, TV, telephone, bike or car?  Or that attaining these material conditions is equivalent to an extra year of schooling or to not having any malnourished family member? Isn’t “multi-dimensional” about recognizing that there are important aspects of welfare that cannot be captured in a single index? MULTIDIMENSIONAL INDICES TO COMPLEMENT TRADITIONAL ANALYSIS

27 References Alkire, S. and Foster, J and Counting and Multidimensional Poverty Measurement. OPHI Working Paper 7 and 32. Alkire, S. and Santos, M.E Acute Multidimensional Poverty: A New Index for Developing Countries. OPHI Working Paper 38. Gordon, David, et al., Child poverty in the developing world, The Policy Press, Bristol, UK, October Ravallion, Martin, On Multidimensional Indices of Poverty (February 1, 2011). World Bank Policy Research Working Paper Series, Vol. , pp. -, Rutstein, Shea O. and Kiersten Johnson The DHS Wealth Index. DHS Comparative Reports No. 6. Calverton, Maryland: ORC Macro. Rutstein, Shea O The DHS Wealth Index: Approaches for Rural and Urban Areas Sahn, David E. and David Stifel “Poverty Comparisons over Time and Across Countries in Africa.” World Development 28(12):

28 Some examples

29 Some examples

30 MICS4 Regional Workshop
Some examples MICS4 Regional Workshop


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