Multiple Indicator Cluster Surveys
Data Dissemination - Further Analysis Workshop
Approaches to using MICS
for Equity/Poverty Analysis
MICS4 Data Dissemination and Further Analysis Workshop
Multidimensional Poverty Indices
•
•
•
•
•
•
•
Outline
Consumption/income poverty
Wealth Index
Bristol Child Deprivation Index
Multidimensional Poverty Index
(MPI)
New Development (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
•
Weights summed by household, household members
ranked according to the total score of the household in
which they reside
•
Divide the households into quintiles
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
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
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 http://www.unicefglobalstudy.blogspot.com/)
• More than 50 UNICEF Country Offices in seven regions have joined the
study. A total of 23 country reports have been produced
Multidimensional Poverty Indices
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
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
2010: 104 countries; 2011: 109 countries
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
4
7
5
4
At least one member malnourished
0
0
1
0
1.67
One or more children have died
1
1
0
1
1.67
No one has completed five years of schooling
0
1
0
1
1.67
At least one school-age child not enrolled
0
1
0
0
1.67
No electricity
0
1
1
1
0.56
No access to clean drinking water
0
0
1
0
0.56
No access to adeguate sanitation
0
1
1
0
0.56
House has dirt floor
0
0
0
0
0.56
Household uses “dirty” cooking fuel
1
1
1
1
0.56
Household has no car and owns at most one of:
bicycle, motorcycle, radio, refrigerator, telephone or
television
0
1
0
1
0.56
2.22
7.22
3.89
5.00
NO
YES
YES
YES
HEALTH
EDUCATION
LIVING CONDITIONS
RESULTS
Weighted count of deprivation, c
Is the household poor? c>3
MICS4 Regional Workshop
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
MICS4 Regional Workshop
Countries with the highest incidence of poverty tend to have the highest intensity of poverty.
MICS4 Regional Workshop
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
MPI at the regional level
Multidimensional Poverty Indices
New development…
• Multiple Overlapping Deprivation Analysis (MODA)
(IRC/UNICEF)
• Child-centered MPI (Oxford)
Multidimensional Poverty Indices
Critique (Ravallion a.o. 2010-2012)
•
•
•
•
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 (a “Mashup Index”)?
MULTIDIMENSIONAL INDICES TO 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
Sahn, David E. and David Stifel. 2000. “Poverty Comparisons over Time and Across Countries in
Africa.” World Development 28(12):2123-2155
What about MICS?
• Syntax developed for
– Bristol (with necessary modifications)
– MPI
– Both to undergo a last review
• Syntax developed for
– MODA (awaiting final methodology and “MICSification”)
• 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
Deprived
Percentage of children severely deprived of:
Total
in 2+
percentage of domains:
Access to
children
In
Total
Basic
severely
absolute number of
Nutrition Water Sanitation
Health
Shelter Education Information Services [*] deprived
poverty children
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
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 None
12.4 43.0
32.4
14.4
26.8
4.6
11.2
70.4
36.2
2615
household
Primary
12.9 39.3
19.2
12.7
16.8
3.5
8.0
60.3
22.3
3698
head
Secondary
7.3 30.9
11.2
10.9
8.9
3.4
3.3
45.8
12.0
1929
High
7.3 18.4
3.6
7.8
6.4
3.1
1.1
29.1
6.0
1150
Tertiary
3.4
5.9
.7
9.2
1.2
1.6
0.0
10.8
1.3
816
Missing/DK
0.0 41.3
24.7
0.0
24.7
21.0
0.0
70.1
24.7
26
Wealth index Poorest
14.4 56.0
47.0
12.0
46.0
4.7
21.6
90.4
57.9
2401
quintiles
Second
12.1 39.8
22.6
14.3
11.1
3.9
5.4
65.1
19.8
2281
Middle
10.9 33.7
8.0
11.0
6.2
3.2
.5
47.2
8.5
2063
Fourth
7.9 23.4
1.0
13.1
4.4
3.2
.4
33.5
2.9
1961
Richest
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.
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
A - The
headcount
intensity of
ratio (the
poverty (the
proportion of proportion of
the
the weighted
The
population
component Multidimen
who are
indicators of
sional
multidimensi which the poor, Poverty
Years of
School
Child
Drinking
Cooking
onally poor; c on average, Index (MPI)
Schooling Attendance Mortality Nutrition Electricity Sanitation Water
Floor
fuel
Assets
> 1/3)
are deprived)
(H x A)
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
Education
Area
Urban
Rural
Living Standards
Percentage
of
Percentage
Population
of
Vulnerable Population
to Poverty in Severe Number of
(c>1/5 and
Poverty
household
c<1/3)
(c>1/2)
members
10.1
0.5
16,331
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
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
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
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
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
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
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
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
Education None
of
Primary
household
Secondary
head
+
Wealth
Poorest
index
Second
quintiles
Middle
Total
Health
MPI
Percentage of the Population who are MPI poor and deprived in each indicator
Education
Health
Living Standards
Years of
School
Child
Drinking
Schooling Attendance Mortality Nutrition Electricity Sanitation Water
Area
Urban
10.5
Rural
38.3
Education of household head
None
41.2
Primary
23.7
Secondary +
0.0
Wealth index quintiles
Poorest
53.0
Second
44.4
Middle
35.2
Fourth
17.7
Richest
2.9
Total
30.2
Floor
Cooking
fuel
Assets
3.8
9.7
10.4
22.8
5.3
7.7
0.8
37.9
22.5
48.7
0.6
5.7
1.2
18.1
1.9
53.1
16.9
68.3
10.0
5.5
3.4
22.8
19.0
7.7
7.4
9.3
3.9
35.0
21.5
5.6
49.2
37.0
18.0
5.1
5.2
0.7
14.7
20.5
2.7
49.8
34.0
3.9
66.8
46.0
15.4
16.2
11.1
5.7
3.8
3.6
29.2
24.3
20.4
14.2
8.7
9.5
8.1
7.9
6.1
3.6
90.8
37.0
9.1
2.1
0.4
67.8
53.1
49.8
31.5
5.5
9.1
6.1
3.9
1.9
0.4
35.4
23.4
7.8
1.0
0.0
99.9
69.0
22.8
3.8
0.3
99.4
91.4
59.5
20.0
1.0
8.0
19.2
7.0
27.0
41.0
4.2
13.2
38.1
53.3
MPI
H - The headcount
A - The intensity of
Percentage Percentage
ratio (the proportion poverty (the proportion
of Population
of
of the population
of the weighted
The
Vulnerable to Population
who are
component indicators of Multidimensional Poverty
in Severe Number of
multidimensionally
which the poor, on
Poverty Index (c>1/5 and
Poverty household
poor; c > 1/3)
average, are deprived) (MPI) (H x A)
c<1/3)
(c>1/2)
members
Area
Urban
Rural
Education of household head
None
Primary
Secondary +
3.8
38.5
40.4
44.2
0.02
0.17
10.1
23.5
0.5
11.7
16,331
39,589
38.0
23.6
1.2
44.1
43.9
37.9
0.17
0.10
0.00
24.1
20.3
4.8
11.6
6.4
0.0
36,082
8,584
11,254
Poorest
Second
Middle
Fourth
Richest
74.9
46.8
17.5
5.4
1.0
46.4
42.4
41.1
37.3
38.9
0.35
0.20
0.07
0.02
0.00
19.8
28.3
34.1
15.4
1.3
26.9
13.2
2.9
0.2
0.3
10,735
11,003
11,129
11,629
11,424
Total
28.4
44.0
0.12
19.6
8.5
55,920
Wealth index quintiles
MPI
MPI
Other simple equity analysis
MICS4 Regional Workshop
Other simple equity analysis
MICS4 Regional Workshop
THANK YOU