Approaches to using MICS for Equity/Poverty Analysis Multiple Indicator Cluster Surveys Data Interpretation, Further Analysis and Dissemination Workshop Approaches to using MICS for Equity/Poverty Analysis

Multidimensional Poverty Indices Outline Consumption/income poverty Wealth Index Bristol Child Deprivation Index Multidimensional Poverty Index (MPI) New Contribution (MODA) Critics Examples

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? Foster-Greer-Thorbecke (FGT) poverty measures

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”

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

Multidimensional Poverty Indices WEALTH INDEX Weights summed by household, household members ranked according to the total score of the household in which they reside Run for urban and rural separately. Regressions used to combine. Divide the households into quintiles.

Multidimensional Poverty Indices WEALTH INDEX 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 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

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

Multidimensional Poverty Indices WEALTH INDEX New contributions: Approaches for Urban and Rural Areas (DHS, 2008) Comparative Wealth Index (DHS, 2014)

Multidimensional Poverty Indices BRISTOL POVERTY MEASURE Developed by Bristol University - Townsend Centre for International Poverty Research with UNICEF 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 http://www.unicefglobalstudy.blogspot.com/) More than 50 UNICEF Country Offices in seven regions have joined the study. More than 25 country reports have been produced

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

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

Multidimensional Poverty Indices

Multidimensional Poverty Indices Multidimensional Poverty Index (MPI) Developed by Oxford Poverty & Human Development Initiative (Sabina Alkire and James Foster 2007, 2009) United Nations Development Programme Human Development Report 2013: 104 countries (30 based on MICS)

Multidimensional Poverty Indices - MPI

Multidimensional Poverty Indices Domain Indicator Health Any child dead Any child (or adult) malnourished Education No household member completed 5 years Any child (grades 1-8) out of school Standard of No electricity Living Unimproved water or improved water more than 30 min round-trip Unimproved or shared sanitation Dirt, sand, dung floor Wood, charcoal, dung used as cooking fuel (biomass) Not owning more than one of: radio, TV, phone (incl. mobile), bike, motorbike and no car/truck

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 and weighted percentage indicators in which poor people are deprived

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

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

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

Countries with the highest incidence of poverty tend to have the highest intensity of poverty.

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.

Multidimensional Poverty Indices MPI and Income Poverty are related PEARSON CORR. $ 1.25/day – MPI = 0.85 More people are MPI poor than income poor (slightly less at $2/day)

Multidimensional Poverty Indices New contribution: Multiple Overlapping Deprivation Analysis (MODA) IRC/UNICEF Child is unit of analysis Life-cycle approach Building further on the rights-based approach of Bristol and the methodology used for the MPI Adding focus on overlaps, intensity of deprivation CC-MODA vs. N-MODA

Multidimensional Poverty Indices Critique (Ravallion a.o. 2010-2013) Indicators likely to be correlated with consumption or income, but they would not capture well the impacts on poor people of economic downturns or shocks. As data is to be collected from the same survey, the precise indicators used in the MPI are somehow data driven and source dependant. 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? Death in family does not work when a mother has died – extreme vulnerability. Malnourishment does not capture death. Isn’t “multi-dimensional” about recognizing that there are important aspects of welfare that cannot be captured in a single index (a “Mashup Index”)? Multidimensional indices complement traditional analysis

References Alkire, S. and Foster, J. 2007 and 2009. Counting and Multidimensional Poverty Measurement. OPHI Working Paper 7 and 32. Alkire, S. and Santos, M.E. 2010. 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 2003. Ravallion, Martin, Mashup Indices of Development (September, 2010). World Bank Policy Research Working Paper Series, 5432, 2010. Ravallion, Martin, On Multidimensional Indices of Poverty (February, 2011). World Bank Policy Research Working Paper Series, 5580, 2011. Rutstein, Shea O. and Kiersten Johnson. 2004. The DHS Wealth Index. DHS Comparative Reports No. 6. Calverton, Maryland: ORC Macro. Rutstein, Shea O. 2008. The DHS Wealth Index: Approaches for Rural and Urban Areas de Neubourg et al. 2012. Cross-Country MODA Study, Technical note, Multiple Overlapping Deprivation Analysis (MODA). de Neubourg et al. 2012. Step-by-step guidelines to the Multiple Overlapping Deprivation Analysis (MODA). UNICEF Office of Research Working Paper 2012-10.

What about MICS? Syntax developed for Bristol (with necessary modifications) MPI Both to undergo a last review Syntax under development for MODA Can be shared with MICS countries very soon – not for Final Reports, but for further analysis

Bristol Example Table: The Bristol Index Percentage of children age 0-17 year who are severely deprived in a selection of basic human need domains and percentage deprived in two or more domains, i.e. in absolute poverty, by background characteristics, Country, 2010   Percentage of children severely deprived of: Total percentage of children severely deprived Deprived in 2+ domains: In absolute poverty Total number of children Nutrition Water Sanitation Health Shelter Education Information Access to Basic Services [*] Sex Male 11.6 34.0 17.4 11.4 15.6 3.1 6.6 52.3 20.4 5129 Female 9.1 33.3 18.3 12.2 15.3 4.1 6.5 53.2 5106 Area Urban 6.3 8.7 1.1 9.4 5.6 4.6 2.0 19.9 4.0 1743 Rural 11.2 38.8 21.3 12.4 17.5 3.4 7.4 59.5 23.7 8492 Education of household head None 43.0 32.4 14.4 26.8 70.4 36.2 2615 Primary 12.9 39.3 19.2 12.7 16.8 3.5 8.0 60.3 22.3 3698 Secondary 7.3 30.9 10.9 8.9 3.3 45.8 12.0 1929 High 18.4 3.6 7.8 6.4 29.1 6.0 1150 Tertiary 5.9 .7 9.2 1.2 1.6 0.0 10.8 1.3 816 Missing/DK 41.3 24.7 21.0 70.1 26 Wealth index quintiles Poorest 56.0 47.0 46.0 4.7 21.6 90.4 57.9 2401 Second 12.1 39.8 22.6 14.3 11.1 3.9 5.4 65.1 19.8 2281 Middle 33.7 11.0 6.2 3.2 .5 47.2 8.5 2063 Fourth 7.9 23.4 1.0 13.1 4.4 .4 33.5 2.9 1961 Richest 2.5 .1 .9 7.2 1528 Total 10.3 17.9 11.8 15.5 52.7 10234 [*] The Bristol Index' compound indicator of Access to Basic Services (distance to school and health facility) is not available from MICS. The Index allows for data from several sources and the information can be added from elsewhere.

MPI Table MPI.01: The Multidimensional Poverty Index (MPI) Distribution of households by dimensions and indicators of poverty, poverty headcount ratio, intensity of poverty, and the MPI, by selected characteristics, Country, 2010   Percentage of the Population who are MPI poor and deprived in each indicator H - The headcount ratio (the proportion of the population who are multidimensionally poor; c > 1/3) A - The intensity of poverty (the proportion of the weighted component indicators of which the poor, on average, are deprived) The Multidimensional Poverty Index (MPI) (H x A) Percentage of Population Vulnerable to Poverty (c>1/5 and c<1/3) Percentage of Population in Severe Poverty (c>1/2) Number of household members Education Health Living Standards Years of Schooling School Attendance Child Mortality Nutrition Electricity Sanitation Drinking Water Floor Cooking fuel Assets Area Urban 10.5 3.8 10.4 5.3 0.8 22.5 0.6 1.2 1.9 16.9 40.4 0.02 10.1 0.5 16,331 Rural 38.3 9.7 22.8 7.7 37.9 48.7 5.7 18.1 53.1 68.3 38.5 44.2 0.17 23.5 11.7 39,589 Education of household head None 41.2 10.0 7.4 35.0 49.2 5.1 14.7 49.8 66.8 38.0 44.1 24.1 11.6 36,082 Primary 23.7 5.5 19.0 9.3 21.5 37.0 5.2 20.5 34.0 46.0 23.6 43.9 0.10 20.3 6.4 8,584 Secondary + 0.0 3.4 3.9 5.6 18.0 0.7 2.7 15.4 0.00 4.8 11,254 Wealth index quintiles Poorest 53.0 16.2 29.2 9.5 90.8 67.8 9.1 35.4 99.9 99.4 74.9 46.4 0.35 19.8 26.9 10,735 Second 44.4 11.1 24.3 8.1 6.1 23.4 69.0 91.4 46.8 42.4 0.20 28.3 13.2 11,003 Middle 35.2 20.4 7.9 7.8 59.5 17.5 41.1 0.07 34.1 2.9 11,129 Fourth 17.7 14.2 2.1 31.5 1.0 20.0 5.4 37.3 0.2 11,629 Richest 3.6 8.7 0.4 0.3 38.9 1.3 11,424 Total 30.2 8.0 19.2 7.0 27.0 41.0 4.2 38.1 53.3 28.4 44.0 0.12 19.6 8.5 55,920

MPI   Percentage of the Population who are MPI poor and deprived in each indicator Education Health Living Standards Years of Schooling School Attendance Child Mortality Nutrition Electricity Sanitation Drinking Water Floor Cooking fuel Assets Area Urban 10.5 3.8 10.4 5.3 0.8 22.5 0.6 1.2 1.9 16.9 Rural 38.3 9.7 22.8 7.7 37.9 48.7 5.7 18.1 53.1 68.3 Education of household head None 41.2 10.0 7.4 35.0 49.2 5.1 14.7 49.8 66.8 Primary 23.7 5.5 19.0 9.3 21.5 37.0 5.2 20.5 34.0 46.0 Secondary + 0.0 3.4 3.9 5.6 18.0 0.7 2.7 15.4 Wealth index quintiles Poorest 53.0 16.2 29.2 9.5 90.8 67.8 9.1 35.4 99.9 99.4 Second 44.4 11.1 24.3 8.1 6.1 23.4 69.0 91.4 Middle 35.2 20.4 7.9 7.8 59.5 Fourth 17.7 14.2 2.1 31.5 1.0 20.0 Richest 2.9 3.6 8.7 0.4 0.3 Total 30.2 8.0 19.2 7.0 27.0 41.0 4.2 13.2 38.1 53.3

MPI   H - The headcount ratio (the proportion of the population who are multidimensionally poor; c > 1/3) A - The intensity of poverty (the proportion of the weighted component indicators of which the poor, on average, are deprived) The Multidimensional Poverty Index (MPI) (H x A) Percentage of Population Vulnerable to Poverty (c>1/5 and c<1/3) Percentage of Population in Severe Poverty (c>1/2) Number of household members Area Urban 3.8 40.4 0.02 10.1 0.5 16,331 Rural 38.5 44.2 0.17 23.5 11.7 39,589 Education of household head None 38.0 44.1 24.1 11.6 36,082 Primary 23.6 43.9 0.10 20.3 6.4 8,584 Secondary + 1.2 37.9 0.00 4.8 0.0 11,254 Wealth index quintiles Poorest 74.9 46.4 0.35 19.8 26.9 10,735 Second 46.8 42.4 0.20 28.3 13.2 11,003 Middle 17.5 41.1 0.07 34.1 2.9 11,129 Fourth 5.4 37.3 15.4 0.2 11,629 Richest 1.0 38.9 1.3 0.3 11,424 Total 28.4 44.0 0.12 19.6 8.5 55,920

Other simple equity analysis

Other simple equity analysis