Beyond Monetary Poverty Analysis: The Dynamics of Multidimensional Child Poverty in Developing Countries

Abstract

This study investigates transitions in monetary and multidimensional poverty using the 2006 and 2009 Young Lives surveys in Ethiopia, India, Peru, and Vietnam. While the headcount ratio in both measures of poverty decreases over time, there is only a small overlap between the groups in monetary and multidimensional poverty in either or both waves. Children remaining in monetary poverty are more likely to stay in multidimensional poverty. However, children escaping from monetary poverty do not always exit from multidimensional poverty. The results suggest the need to go beyond traditional monetary poverty indicators to understand and monitor poverty dynamics among children.