SANTOS Maria Emma
A Multidimensional Poverty Index for Latin America
MARIA EMMA SANTOS; VILLATORO, PABLO
Review of Income and Wealth
Lugar: Londres; Año: 2018 vol. 64 p. 52 - 52
This paper proposes a new Multidimensional Poverty Index for Latin America. Theindex combines monetary and non-monetary indicators, updates deprivation cut-offs forcertain traditional unsatisfied basic needs indicators and includes some new indicators,aiming to maximize regional comparability within the data constraints. The index isestimated for 17 countries of the region in two points in time ? one around 2005 and theother around 2012. Overall, we estimate about 28% of people are multidimensionallypoor in 2012 in the region. We find statistically significant reductions of poverty inmost countries, both in terms of incidence and intensity over the period under analysis.However, important disparities between rural and urban areas remain. Statisticalscrutiny of the index suggests that it captures the state of poverty relatively well whilemaintaining a certain parsimony and being highly robust to changes in weights,indicators, and poverty cut-off.