Multidimensional Poverty Index for Urban Households in Ethiopia

Abstract

The research has been undertaken with adherence to the basic themes of constructing a multidimensional poverty index. To that end, methodological setups concerning research design, sample technique & size, data source, data collection tools, and procedures deployed and data analysis were administered. The finding of the study shows acute deprivation of the households in living standard indicators, education, and health dimensions respectively. The incidence of the households that are multidimensionally poor and the intensity of the deprivations experienced were attested to be uncorrelated. In other words, the higher MPI incidence does not necessarily correlate with higher average intensity. Based on the data drawn from the households, the multidimensional poverty index is 0.1938. Dimensional and indicator contribution to the MPI reveals the dominance of living standard dimension’s deprivation of the households. The study, therefore, concludes that the surveyed households are multidimensionally poor wherein living standard has the lion’s share of contribution relative to education and health indicators. The researcher thereon recommended that targeting poverty reduction must consider and rigorously identify the incidence and intensity features of the households’ deprivation. This is because these poverty facets require different approaches to reduce poverty. Keywords: Multidimensional poverty, Deprivation, Cutoff, incidence, intensity DOI: 10.7176/DCS/12-6-02 Publication date: June 30 th 2022