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Article
Publication date: 30 March 2020

Nur Azirah Zahida Mohamad Azhar and Saidatulakmal Mohd

Currently, Malaysia uses the Poverty Line Income (PLI) to measure poverty. This is because income measurement is the easiest way to collect data, but in its simplicity, it…

Abstract

Purpose

Currently, Malaysia uses the Poverty Line Income (PLI) to measure poverty. This is because income measurement is the easiest way to collect data, but in its simplicity, it fails to capture the broader meaning and implications of poverty. Asset index is one of the non-monetary poverty measurements which have been established by researchers but not used in measuring poverty in Malaysia. A household might be poor in income, but assets may prevent them from being trapped in poverty.

Design/methodology/approach

This study will reassess the poverty of 302 households in the Northern States of Malaysia using the asset index and also the current state of poverty incidence with change under asset index.

Findings

The results show that households in the Northern States of Malaysia are interpreted as being ‘poorer’ when poverty is measured using assets as opposed to income alone. Besides that, poverty incidence of Malay households, households living in urban area and households with middle-aged heads have high poverty incidence, while households with a head of households that is single and highly educated have low poverty incidence. The logistic regression analysis shows that the determinants of poverty incidence based on the asset index are Indian, Penang and Perak State, the age of the head of household, distance to the education centre from home.

Originality/value

This study shows the asset index measurement which have not been done in Malaysia. This will contribute to the improvement of poverty measurement of the country.

Details

International Journal of Social Economics, vol. 47 no. 4
Type: Research Article
ISSN: 0306-8293

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Abstract

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Energy Economics
Type: Book
ISBN: 978-1-78756-780-1

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Article
Publication date: 1 October 1996

Robert E. Wright

Outlines a method for controlling for compositional factors in the measurement of poverty. Bases the method on “shift‐share analysis” and “direct standardization”…

Abstract

Outlines a method for controlling for compositional factors in the measurement of poverty. Bases the method on “shift‐share analysis” and “direct standardization”, consistent with Sen’s (1976) influential axiomatic approach to poverty measurement. Employs the popular poverty index proposed by Foster et al. (1984), which is one of the few summary poverty measures that can be directly standardized and also meets Sen’s criteria. The method is illustrated by examining the trend in absolute and relative poverty in the UK. Uses data from the “Family Expenditure Survey”, covering the period 1968 to 1986, and places specific empirical focus on the relationship between household structure and poverty.

Details

Journal of Economic Studies, vol. 23 no. 4
Type: Research Article
ISSN: 0144-3585

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Book part
Publication date: 10 October 2017

Suman Seth and Sabina Alkire

A number of multidimensional poverty measures that respect the ordinal nature of dimensions have recently been proposed within the counting approach framework. Besides…

Abstract

A number of multidimensional poverty measures that respect the ordinal nature of dimensions have recently been proposed within the counting approach framework. Besides ensuring a reduction in poverty, however, it is important to monitor distributional changes to ensure that poverty reduction has been inclusive in reaching the poorest. Distributional issues are typically captured by adjusting a poverty measure to be sensitive to inequality among the poor. This approach, however, has certain practical and conceptual limitations. It conflicts, for example, with some policy-relevant measurement features, such as the ability to decompose a measure into dimensions post-identification and does not create an appropriate framework for assessing disparity in poverty across population subgroups. In this chapter, we propose and justify the use of a separate decomposable inequality measure – a positive multiple of “variance” – to capture the distribution of deprivations among the poor and to assess disparity in poverty across population subgroups. We demonstrate the applicability of our approach through two contrasting inter-temporal illustrations using Demographic Health Survey data sets for Haiti and India.

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Book part
Publication date: 26 August 2015

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.

Details

Measurement of Poverty, Deprivation, and Economic Mobility
Type: Book
ISBN: 978-1-78560-386-0

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Article
Publication date: 23 March 2012

Nuttamon Teerakul, Renato A. Villano, Fiona Q. Wood and Stuart W. Mounter

The purpose of this paper is to describe a framework developed for assessing Community‐based Enterprises' (CBEs') impacts on poverty reduction at the household level in…

Abstract

Purpose

The purpose of this paper is to describe a framework developed for assessing Community‐based Enterprises' (CBEs') impacts on poverty reduction at the household level in northern Thailand, in the context of the UN Millennium Development Goals. The focus is on the use of principal component analysis to develop a context‐specific definition of poverty.

Design/methodology/approach

The paper explains how business performance measurement, impact assessment of development projects and poverty measurement have been integrated into a single poverty impact assessment framework in relation to CBEs. This framework has two key steps: identification of poverty groups and poverty components; and impact assessment of CBEs and other factors on household poverty.

Findings

The framework captures a number of qualitative and quantitative aspects of poverty necessary for an accurate relative measure for differing geographical, economic and cultural contexts.

Originality/value

The novelty of this paper's approach lies in the design of the framework used to assess poverty impacts of CBEs at the household level. The framework combines three well‐known, but traditionally separately used, methodologies in order to better explore the economic dynamic of CBEs on households. The paper is expected to be of high relevance, both theoretically and methodologically, to researchers undertaking similar poverty, micro‐enterprise and social entrepreneurship studies in other developing countries.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 6 no. 1
Type: Research Article
ISSN: 1750-6204

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Article
Publication date: 11 May 2015

Muhammad Akhyar Adnan and Shochrul Rohmatul Ajija

– This paper aims to investigate the effectiveness of Baitul Maal wat Tamwil (BMT) in reducing poverty.

Abstract

Purpose

This paper aims to investigate the effectiveness of Baitul Maal wat Tamwil (BMT) in reducing poverty.

Design/methodology/approach

The case study approach on BMT MMU Sidogiri (located at East Java Province) is taken. Two important and dominating products of BMT MMU Sidogiri (i.e. ba’i bithaman ‘ajil (BBA) and mudarabah) are examined carefully on how much they have helped the customers in reducing their poverty. The paper goes beyond data measurement using descriptive statistics, paired t-test and some poverty measurement indexes such as headcount index; poverty gap; Sen index; and Foster, Greer and Thorbecke Index to investigate the effectiveness of the BMT in reducing poverty.

Findings

This paper reveals that BMT financing is effective in reducing poverty. Most of respondents can increase their income after receiving BMT financing. Products of BMT, especially BBA and mudarabah, to empower the poor in various productive businesses have been able to reduce the extent and severity of poverty. This paper also discloses some interesting and important findings related with how BMT’s work, so that it can contribute more to the knowledge enrichment, as well as the development of BMTs, in general, in realising their mission.

Originality/value

The establishment of the so-called BMT in the form of an Islamic microfinance is intended initially to effectively help the poor. At present, there are around 3,874 BMTs operating around the country. Although the BMTs have been existing since more than ten years, no research has been conducted to examine their effectiveness in alleviating the poverty. This study in aimed at fulfilling this important gap.

Details

Humanomics, vol. 31 no. 2
Type: Research Article
ISSN: 0828-8666

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Article
Publication date: 1 November 2004

Amélia Bastos, Graça Leão Fernandes and José Passos

This paper is a study on child poverty from two perspectives: child income poverty (derived from family income) and child deprivation (evaluated by non‐monetary…

Abstract

This paper is a study on child poverty from two perspectives: child income poverty (derived from family income) and child deprivation (evaluated by non‐monetary indicators). On the one hand, empirical evidence supports the thesis that income‐based poverty measures and deprivation measures do not overlap. On the other hand, the relationship between poverty and the child's living conditions is not linear. Uses micro‐econometric techniques to analyse child income poverty and present deprivation indicators, and thereby an index of child deprivation, to study child poverty. The measurements used are centred on the child. The results obtained support the thesis that the study of child poverty differs whether the focus is on the child or on the family.

Details

International Journal of Social Economics, vol. 31 no. 11/12
Type: Research Article
ISSN: 0306-8293

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Book part
Publication date: 10 October 2017

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…

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.

Details

Research on Economic Inequality
Type: Book
ISBN: 978-1-78714-521-4

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Book part
Publication date: 26 August 2010

María Emma Santos, María Ana Lugo, Luis Felipe López-Calva, Guillermo Cruces and Diego Battistón

Latin America has a longstanding tradition in multidimensional poverty measurement through the unsatisfied basic needs (UBN) approach. However, the method has been…

Abstract

Latin America has a longstanding tradition in multidimensional poverty measurement through the unsatisfied basic needs (UBN) approach. However, the method has been criticized on several grounds, including the selection of indicators, the implicit weighting scheme and the aggregation methodology, among others. The estimates by the UBN approach have traditionally been complemented (or replaced) with income poverty estimates. Under the premise that poverty is inherently multidimensional, in this chapter we propose three methodological refinements to the UBN approach. Using the proposed methodology we provide a set of comparable poverty estimates for six Latin American countries between 1992 and 2006.

Details

Studies in Applied Welfare Analysis: Papers from the Third ECINEQ Meeting
Type: Book
ISBN: 978-0-85724-146-7

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