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Towards a Multidimensional Poverty Index for Germany

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  • Nicolai Suppa
Abstract
This paper compiles a multidimensional poverty index for Germany. Drawing on the capability approach as conceptual framework, I apply the Alkire-Foster method using German data. I propose a comprehensive operationalisation of a multidimensional poverty index for an advanced economy like Germany, including a justification for several dimensions. Income, however, is rejected as a dimension on both conceptual and empirical grounds. I document that insights obtained by the proposed multidimensional poverty index are consistent with earlier findings. Moreover, I exploit the decomposability of the Alkire-Foster measure for both a consistently detection of specific patterns in multidimensional poverty and the identification of driving factors behind its changes. Finally, the results suggest that using genuine multidimensional measures makes a difference. Neither a single indicator nor a dashboard seem capable of replacing a multidimensional poverty index. Moreover, I find multidimensional and income-poverty measures to disagree on who is poor.

Suggested Citation

  • Nicolai Suppa, 2015. "Towards a Multidimensional Poverty Index for Germany," OPHI Working Papers 98, Queen Elizabeth House, University of Oxford.
    • Handle: RePEc:qeh:ophiwp:ophiwp098
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    More about this item

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H1 - Public Economics - - Structure and Scope of Government

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