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1 – 10 of over 8000Noha Omar and Heba Farida El-Laithy
This paper aims to examine the mismatch between multidimensional deprivation and monetary poverty in identifying the poor in Egypt and investigates their determinants empirically.
Abstract
Purpose
This paper aims to examine the mismatch between multidimensional deprivation and monetary poverty in identifying the poor in Egypt and investigates their determinants empirically.
Design/methodology/approach
The paper uses the Alkire-Foster multidimensional poverty measurement method using data from Egypt’s 2017/2018 Household Income, Expenditure and Consumption Survey (HIECS 2017/2018). Using a logistic regression model, the paper assesses the empirical relationship between multidimensional and monetary poverty and their determinants at the aggregate level and by dimension.
Findings
The paper demonstrates a significant mismatch between multidimensional and monetary poverty measures, underscoring their complementary nature. Statistics indicate that both measures overlap in classifying 35.81% of Egyptians, whereas monetary poverty ignores 63.12% of multidimensionally poor in at least one dimension. Regression estimates show a significant moderate negative association between expenditure per capita and multidimensional poverty and its dimensions. Moreover, they show that household head’s gender, age, education attainment, marital status, job proficiency, household size and location affect poverty mismatch and match in Egypt.
Practical implications
This paper offers Egyptian policymakers the multidimensional poverty index that enables more efficient designing and targeting of poverty alleviation programs and assessing current poverty alleviation programs to modify them if needed.
Originality/value
To the best of the authors’ knowledge, this study is the first to examine the mismatch between both poverty measures in Egypt, using the recent full data set of HIECS 2017/2018. This paper confirms that depending only on monetary measures can send inaccurate insights for crafting effective social policies. Also, it offers policymakers a comprehensive insight into the country’s poverty landscape, which enable more efficient design, targeting of poverty alleviation programs and monitoring their effectiveness.
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Van Q. Tran, Sabina Alkire and Stephan Klasen
There has been a rapid expansion in the literature on the measurement of multidimensional poverty in recent years. This paper focuses on the longitudinal aspects of…
Abstract
There has been a rapid expansion in the literature on the measurement of multidimensional poverty in recent years. This paper focuses on the longitudinal aspects of multidimensional poverty and its link to dynamic income poverty measurement. Using panel household survey data in Vietnam from 2007, 2008, and 2010, the paper analyses the prevalence and dynamics of both multidimensional and monetary poverty from the same dataset. The results show that the monetary poor (or non-poor) are not always multidimensionally poor (or non-poor) – indeed the overlap between the two measures is much less than 50 percent. Additionally, monetary poverty shows faster progress as well as a higher level of fluctuation than multidimensional poverty. We suggest that rapid economic growth as experienced by Vietnam has had a larger and more immediate impact on monetary than on multidimensional poverty.
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Olumide O. Olaoye and Mulatu F. Zerihun
The study examined the roles of fiscal and monetary policy in reducing poverty in sub-Saharan Africa (SSA), while accounting for macroeconomic disruptions. In particular, the…
Abstract
Purpose
The study examined the roles of fiscal and monetary policy in reducing poverty in sub-Saharan Africa (SSA), while accounting for macroeconomic disruptions. In particular, the study examined the complementarity of fiscal and monetary policy to mitigate shocks and reduce poverty in SSA.
Design/methodology/approach
The study adopts the fixed effect (within regression) model to account for country-specific characteristics, and a cross-sectional dependence – consistent model to control for the potential cross-sectional in panel data modelling. The study used the dummy variable approach to account for the macroeconomic shocks. The authors assigned 1 to the following years – 2008, 2014 and 2020; and 0 otherwise to take care of the global financial crisis, commodity terms of trade shocks and the COVID-19 pandemic respectively.
Findings
The study found that fiscal policy (particularly, government spending on health and education) has the greater capacity to reduce the level of poverty in SSA. The results also indicate that fiscal policy and monetary policy can work in tandem to reduce the negative effects of a pandemic. However, the study found an optimal threshold level of monetary policy beyond which monetary policy reduces the effectiveness of fiscal policy to reduce poverty in SSA. The research and policy implications are discussed.
Originality/value
The study, unlike previous studies, accounts for the impact of macroeconomic shocks in the monetary/fiscal policy and poverty literature.
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Mustafa Hassan Elsafi, Elsadig Musa Ahmed and Santhi Ramanathan
The purpose of this paper is to examine the impact of microfinance programs sponsored by Sudanese microfinance institutions (SMFIs) on monetary poverty reduction in Sudan where…
Abstract
Purpose
The purpose of this paper is to examine the impact of microfinance programs sponsored by Sudanese microfinance institutions (SMFIs) on monetary poverty reduction in Sudan where poverty is widely spread.
Design/methodology/approach
The study adopted the control group approach, where income and expenditure are taken as welfare indicators. The updated World Bank’s international poverty line of 1.90 per person per day was adopted to separate the poor from non-poor. The data were collected by the means of a questionnaire distributed to a random sample of beneficiaries in the institution under study. The study adapted the Foster, Greer and Thorbecke (FGT) model to evaluate the role of microfinance programs in poverty reduction. Furthermore, to gain more insight into the impact of the program, a preliminary analysis was conducted using the independent-samples t-test to examine the difference in the welfare indicators for the sample of the control group and treatment group as well as that of the small loan group and micro-loan group.
Findings
The findings show that the microfinance program provided by SMFIs has reduced the monetary poverty among the participants. The results also reveal that beneficiaries who had received a larger volume of loan were noted lesser poverty than those who had received very small loan size. Moreover, the results demonstrate that poverty indices based on expenditure as a welfare indicator are far lower than those based on income for both groups.
Originality/value
This study contributes to the available literature by filling the gaps through including income and expenditure as monetary variables, which included separately in previous studies adopted the FGT model in the area of microfinance, in addition to exploring the role of loan size in the effect of microfinance on poverty reduction.
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Sabina Alkire and Yangyang Shen
Most poverty research has explored monetary poverty. This chapter presents and analyzes the global multidimensional poverty index (MPI) estimations for China. Using China Family…
Abstract
Most poverty research has explored monetary poverty. This chapter presents and analyzes the global multidimensional poverty index (MPI) estimations for China. Using China Family Panel Studies (CFPS), we find China’s global MPI was 0.035 in 2010 and decreased significantly to 0.017 in 2014. The dimensional composition of MPI suggests that nutrition, education, safe drinking water, and cooking fuel contribute most to overall non-monetary poverty in China. Such analysis is also applied to subgroups, including geographic areas (rural/urban, east/central/west, provinces), as well as social characteristics such as gender of the household heads, age, education level, marital status, household size, migration status, ethnicity, and religion. We find the level and composition of poverty differs significantly across certain subgroups. We also find high levels of mismatch between monetary and multidimensional poverty at the household level, which highlights the importance of using both complementary measures to track progress in eradicating poverty.
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Johannes Tabi Atemnkeng and Daniel Mbu Tambi
The purpose of this paper is to provide insight to policy-makers into a framework for action, which is needed to effectively reduce poverty in its monetary and non-monetary…
Abstract
Purpose
The purpose of this paper is to provide insight to policy-makers into a framework for action, which is needed to effectively reduce poverty in its monetary and non-monetary dimensions.
Design/methodology/approach
Specifically, an exact decomposition analysis is conducted that is based on the Shapley value method, and investigated the growth and redistribution effects as well as changes due to mobility and sector-specific effects of the variation in both income/expenditure and non-income poverty dimensions.
Findings
Growth in mean consumption and household assets accounted for the bulk of the improvement in poverty reduction and the results complement the evidence obtained from the “sectoral decomposition” of poverty in Cameroon which may indeed have a strong bearing on the sectoral shares of poverty. The temptation is resisted, however, not to deny that redistribution also has an important role to play, yet there must be severe limits to what can be achieved by growth neutral redistribution. The redistribution effect had an ameliorating tendency in household asset deprivation among farming households.
Originality/value
This paper is a well-written piece using quite rigorous and interesting methodological approach. To obtain a measure of non-income dimensions of well-being, the authors constructed composite indices on household assets reflecting household access to a range of physical assets and services including human capital by polychoric principal component analysis method.
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John Ele‐Ojo Ataguba, Hyacinth Eme Ichoku and William M. Fonta
The purpose of this paper is to compare the assessment of poverty/deprivation using different conceptions of this phenomenon including the traditional money‐metric measure and…
Abstract
Purpose
The purpose of this paper is to compare the assessment of poverty/deprivation using different conceptions of this phenomenon including the traditional money‐metric measure and different forms of multidimensional constructs.
Design/methodology/approach
The data were drawn from a household survey conducted in Nsukka, Nigeria. Interviewer‐administered questionnaires were used in data collection from about 410 households across urban and rural localities. The counting and FGT methodologies were used to assess impoverishment, while regression analyses were used to assess the determinants of deprivation across different constructs.
Findings
Between 70 per cent and 78 per cent of the study population were identified as poor/deprived. However, more than 11 per cent of those living on less than USD1.25/day were classified as non‐poor using different measures of multidimensional poverty. Similarly, more than 62 per cent of individuals who live on more than 1.25USD/day (i.e. non‐poor) are classified as poor using different measures of multidimensional deprivation. There is some level of correlation between measures, some inevitably stronger than others. The major determinants of deprivation across the various constructs of deprivation include large family size, low level of education, poor employment, rural location, and poor health.
Originality/value
This paper uses novel datasets that incorporate variables relating to the capability approach in understanding deprivation. Specifically, it analyses the so‐called missing dimensions of poverty. It also applies a new methodology for the assessment of impoverishment and deprivation. It highlights the importance of the capability approach in explaining poverty.
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Célia Bouchet and Nicolas Duvoux
Drawing on the French case, this article examines the size and scope of poverty resulting from the coronavirus disease 2019 (COVID-19) pandemic, the diversity of poverty's…
Abstract
Purpose
Drawing on the French case, this article examines the size and scope of poverty resulting from the coronavirus disease 2019 (COVID-19) pandemic, the diversity of poverty's manifestations and the role of public action (among other actors) in addressing the poverty. This reflection unfolds at the confluence between the international literature on the economic effects of COVID-19 around the world and the methodological and conceptual issues on poverty.
Design/methodology/approach
Following a research report to the French Government in 2021, a new academic collaboration is initiated to assess the conceptual issues underlying the report's nine quantitative, qualitative and participatory studies. A thematic analysis is used to elaborate on an original framework.
Findings
COVID-19 not only had detrimental economic effects on specific groups, such as precarious workers and students, but also serious effects on social isolation, mental health, access to welfare and public services. Together with assessing the consequences of the COVID-19 pandemic on poverty in France, this paper highlights the lack of recognition of community support in the face of hard times.
Originality/value
The COVID-19 outbreak has not only deteriorated socioeconomic situations in France, but has also unmasked structural, long-term components of poverty. The paper discusses three policy implications of these revelations, concerning (1) the monitoring of non-monetary dimensions of poverty, (2) the needs of various groups under a welfare state with a dual structure and (3) the role of communities in public policy schemes.
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Fabio Berti, Antonella D’Agostino, Achille Lemmi and Laura Neri
Italy has become a migrant receiving country and it has to face with the problem of social inclusion of immigrants. The purpose of this paper is to measure the gap on poverty and…
Abstract
Purpose
Italy has become a migrant receiving country and it has to face with the problem of social inclusion of immigrants. The purpose of this paper is to measure the gap on poverty and deprivation between immigrants and natives since manifest conditions of both of them are an important signal, although not exclusively, of social exclusion.
Design/methodology/approach
Poverty analysis typically relies on a single monetary variable such as income and it is characterized by a simple dichotomization of the population into poor and non-poor. In this paper the authors stress the importance of using a multidimensional and fuzzy approach in order to study disparities between immigrants and natives. The authors cover several of the multifaceted aspects of resources necessary to maintain adequate living standards in a developed country. With the fuzzy methodology, the authors also overcome any limitation of the conventional approach based on the simple dichotomization of the phenomenon.
Findings
The empirical analysis is based on data from two official surveys. The authors find that between Italian and immigrant households there are significant differences in poverty and deprivation levels, with a strong disadvantage for the latter. The authors argue that any serious attempt to reduce poverty and deprivation must now include comprehensive reforms in the nation's immigration policies if they are to be taken seriously.
Originality/value
The paper makes an original contribution to the understanding of inequality between immigrants and natives, by studying a complex phenomena such as poverty and deprivation in a multidimensional perspective using a fuzzy approach.
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The purpose of this paper is to reconcile the multidimensional nature of poverty with a population's cultural conditioning for the purpose of policy evaluation.
Abstract
Purpose
The purpose of this paper is to reconcile the multidimensional nature of poverty with a population's cultural conditioning for the purpose of policy evaluation.
Design/methodology/approach
Structural equation modeling is the strategy used to compare nested models.
Findings
The results show that the observed differences in the dimensions of poverty significantly, but not exclusively, result from differences in cultural valuation systems between groups. Culture influences poverty in two ways: differences in perceptions and differences in the poverty determinants.
Practical implications
In consideration of these results, we propose a participatory, decentralized and cautious approach in developing credible poverty‐alleviation strategies which respond to the needs expressed by the relevant populations.
Originality/value
In this research, the authors adopt a quantitative approach which applies some statistical tests to analyze the effects of cultural values on poverty.
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