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

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Multidimensional Poverty Indices

Outline Consumption/income poverty Wealth Index Bristol Child Deprivation Index Multidimensional Poverty

Index (MPI) New Contribution (MODA) Critics Examples

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Multidimensional Poverty Indices -Background

Once upon a time…….INCOME/CONSUMPTION POVERTYThree main decisions:1. How do we assess individual well-being or "welfare"?

Income or consumption2. At what level of measured well-being do we say that

a person is not poor? Choose poverty lines3. How do we aggregate individual indicators of well-

being into a measure of poverty? Foster-Greer-Thorbecke (FGT) poverty measures

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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”

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Multidimensional Poverty IndicesWEALTH INDEX

Use information on assets or household possessionsIt 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

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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.

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• 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

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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

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New contributions:Approaches for Urban and Rural Areas

(DHS, 2008)Comparative Wealth Index

(DHS, 2014)

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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

http://www.unicefglobalstudy.blogspot.com/

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Dimension 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

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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

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Multidimensional Poverty Index (MPI)

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

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Multidimensional Poverty Indices - MPI

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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

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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

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Indicators 1 2 3 4 Weight

Household size 4 7 5 4

HEALTHAt least one member malnourished 0 0 1 0 1.67One or more children have died 1 1 0 1 1.67

EDUCATIONNo one has completed five years of schooling 0 1 0 1 1.67At least one school-age child not enrolled 0 1 0 0 1.67

LIVING CONDITIONSNo electricity 0 1 1 1 0.56No access to clean drinking water 0 0 1 0 0.56No access to adeguate sanitation 0 1 1 0 0.56House has dirt floor 0 0 0 0 0.56Household uses “dirty” cooking fuel 1 1 1 1 0.56Household has no car and owns at most one of: bicycle, motorcycle, radio, refrigerator, telephone or television

0 1 0 1 0.56

RESULTSWeighted count of deprivation, c 2.22 7.22 3.89 5.00Is the household poor? c>3 NO YES YES YES

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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

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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

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

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Multidimensional Poverty IndicesDeprivation 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.

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PEARSON CORR.$ 1.25/day – MPI = 0.85

More people are MPI poor than income poor (slightly less at $2/day)

MPI and Income Poverty are related

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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

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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 indicescomplement

traditional analysis

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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.

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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

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Bristol ExampleTable: The Bristol IndexPercentage 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 childrenNutrition 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 20.4 5106Area 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 8492Education of household head

None 12.4 43.0 32.4 14.4 26.8 4.6 11.2 70.4 36.2 2615Primary 12.9 39.3 19.2 12.7 16.8 3.5 8.0 60.3 22.3 3698Secondary 7.3 30.9 11.2 10.9 8.9 3.4 3.3 45.8 12.0 1929High 7.3 18.4 3.6 7.8 6.4 3.1 1.1 29.1 6.0 1150Tertiary 3.4 5.9 .7 9.2 1.2 1.6 0.0 10.8 1.3 816Missing/DK 0.0 41.3 24.7 0.0 24.7 21.0 0.0 70.1 24.7 26

Wealth index quintiles

Poorest 14.4 56.0 47.0 12.0 46.0 4.7 21.6 90.4 57.9 2401Second 12.1 39.8 22.6 14.3 11.1 3.9 5.4 65.1 19.8 2281Middle 10.9 33.7 8.0 11.0 6.2 3.2 .5 47.2 8.5 2063Fourth 7.9 23.4 1.0 13.1 4.4 3.2 .4 33.5 2.9 1961Richest 3.1 2.5 .1 7.8 .9 2.5 0.0 7.2 .7 1528

Total 10.3 33.7 17.9 11.8 15.5 3.6 6.5 52.7 20.4 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.

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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 indicatorH - 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 Multidimen

sional 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 3.8 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 22.8 7.4 35.0 49.2 5.1 14.7 49.8 66.8 38.0 44.1 0.17 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 7.7 3.9 5.6 18.0 0.7 2.7 3.9 15.4 1.2 37.9 0.00 4.8 0.0 11,254


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 37.0 53.1 6.1 23.4 69.0 91.4 46.8 42.4 0.20 28.3 13.2 11,003

Middle 35.2 5.7 20.4 7.9 9.1 49.8 3.9 7.8 22.8 59.5 17.5 41.1 0.07 34.1 2.9 11,129

Fourth 17.7 3.8 14.2 6.1 2.1 31.5 1.9 1.0 3.8 20.0 5.4 37.3 0.02 15.4 0.2 11,629

Richest 2.9 3.6 8.7 3.6 0.4 5.5 0.4 0.0 0.3 1.0 1.0 38.9 0.00 1.3 0.3 11,424

Total 30.2 8.0 19.2 7.0 27.0 41.0 4.2 13.2 38.1 53.3 28.4 44.0 0.12 19.6 8.5 55,920

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MPI

Percentage of the Population who are MPI poor and deprived in each indicatorEducation 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 16.9Rural 38.3 9.7 22.8 7.7 37.9 48.7 5.7 18.1 53.1 68.3Education of household headNone 41.2 10.0 22.8 7.4 35.0 49.2 5.1 14.7 49.8 66.8Primary 23.7 5.5 19.0 9.3 21.5 37.0 5.2 20.5 34.0 46.0Secondary + 0.0 3.4 7.7 3.9 5.6 18.0 0.7 2.7 3.9 15.4Wealth index quintilesPoorest 53.0 16.2 29.2 9.5 90.8 67.8 9.1 35.4 99.9 99.4Second 44.4 11.1 24.3 8.1 37.0 53.1 6.1 23.4 69.0 91.4Middle 35.2 5.7 20.4 7.9 9.1 49.8 3.9 7.8 22.8 59.5Fourth 17.7 3.8 14.2 6.1 2.1 31.5 1.9 1.0 3.8 20.0Richest 2.9 3.6 8.7 3.6 0.4 5.5 0.4 0.0 0.3 1.0 Total 30.2 8.0 19.2 7.0 27.0 41.0 4.2 13.2 38.1 53.3

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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 16,331Rural 38.5 44.2 0.17 23.5 11.7 39,589Education of household head None 38.0 44.1 0.17 24.1 11.6 36,082Primary 23.6 43.9 0.10 20.3 6.4 8,584Secondary + 1.2 37.9 0.00 4.8 0.0 11,254


Poorest 74.9 46.4 0.35 19.8 26.9 10,735Second 46.8 42.4 0.20 28.3 13.2 11,003Middle 17.5 41.1 0.07 34.1 2.9 11,129Fourth 5.4 37.3 0.02 15.4 0.2 11,629Richest 1.0 38.9 0.00 1.3 0.3 11,424

Total 28.4 44.0 0.12 19.6 8.5 55,920

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Other simple equity analysis

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Other simple equity analysis

approaches to using mics for equity/poverty analysis

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