Abstract
The commonly used poverty indices measure the overall level of poverty in a society but fail to capture the differential intensity of poverty across different socioeconomic groups. This article proposes a new measure, Inequality of Poverty Index (similar to dissimilarity index in the literature on inequality of opportunity) that captures inequality in distribution of poverty across different subgroups. It can be used to determine the major socioeconomic factors/characteristics/circumstances causing between-group disparity in poverty and effect of a specific factor on poverty relative to other factors and time. The article also provides an application of the index and potential policy implications.
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