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www.coneval.gob.mx
Multidmensional Poverty Measurement: The Mexican Wave
Gonzalo Hernández Licona
March, 2014
Measuring poverty according to the Social Development Law (2005)
Dimensions for poverty
measurement
•Current income per capita
• Educational gap
• Access to health services
• Access to social security
• Quality of dwelling
• Dwelling’s basic services
• Access to food
National, State and
Municipality level
Social rights’
approach
Advantages of the social rights approach
• It solves problems of weights and thresholds:– Since human rights are indivisible &
interdependent, they all have the same relative importance. They have the same weight.
– The Mexican regulation sets thresholds for several dimensions.
• The poverty measurement has a normative approach.
Social RightsDeprivations
Main features
Income cut-off
WithoutDeprivations
035 24 16
PoorIncom
e
• Education• Health services • Social security • Quality
dwelling • Dwelling´s
services• Access to food
Moderate
poor
Social RightsDeprivations
Income cut-off
Extreme poor
03
Vulnerable people by
social deprivation
s
Vulnerable people by
income
5 24 16
Not poor and not
vulnerable
Minimum IncomeCut-off
Public policy
Poverty identificationIn
com
e
Social RightsDeprivations
EWL
035 24 16
Not poor and not vulnerable
21.8 million19.3%
MWLIncom
eTotal population 2010 (112.6 millions)
Urban = $2,114 Rural = $1,329
Source: estimates by CONEVAL based on MCS-ENIGH 2010.
Extreme poor
10.4% (11.7 million)3.7 deprivations
on average
35.8% (40.3 million)
2.1 deprivations on average
Moderate poorUrban = $978 Rural = $684
46.2 % 52.0 millions 2.5 deprivations on average
Poverty
4.1
-2.5
-2.3
-2.9
-9.0
-0.8
4.8
3.2
-10.0 -8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0
Change in multidimensional poverty 2008-2010.Mexico
Fuente: estimaciones del CONEVAL con base en el MCS-ENIGH 2008 y 2010
Poverty
Nr of people with low income
Access to food
Basic services in the house
Quality of housing
Access to social security
Access to health services
Educational gap
Dep
rivatio
ns
Millions of People
Using the multidimensional approach for policy purposes
• It is now possible to evaluate the effect of social policy not only on income poverty but also on specific social deprivations.
• Measuring poverty in a multidimensional way helps governments to do better in terms of policy
• Poverty is a multidimensional phenomenon and must be tackled and measured in a multidimensional way
ANNEX
Social RightsDeprivations
LBE
03
Vulnerable people by social deprivation 32.3 million
28.7%1.9 deprivations on average
Vulnerable people by
income6.5 million
5.8%
5 24 16
Not poor and not vulnerable
21.8 million19.3%
LBM
Wellb
ein
gIn
com
eTotal population 2010 (112.6 millions)
Urban = $2,114 Rural = $1,329
Source: estimates by CONEVAL based on MCS-ENIGH 2010.
Extreme poor
10.4% (11.7 million)3.7 deprivation on
average
35.8% (40.3 million)
2.1 deprivations on average
Moderate poorUrban = $978 Rural = $684
46.2 % 52.0 millions 2.5 deprivations on average
Poverty
Educational gap[20.6%]
Social Deprivations
Access to health services[31.8%]
Access to social security [60.7%]
Quality of dwelling [15.2%]
Access to housing basic services [16.5%]
Access to food [24.9%]
Source: estimations of CONEVAL based on MCS-ENIGH 2010.
Economic wellbeing
Incomes below EWL [52.0%]
Incomes below EMWL
[19.4%]
Source: estimations of CONEVAL based on MCS-ENIGH 2010.
THRESHOLDS
Legal criteria
Experts criteria
How to determine thresholds? Social rights
Consultation with specialists
Use of legal norms, if they exist
Public institutions
Health, Housing, Social Security, Education
Educational gap
Population aged 3-15
years
Population aged
16 years or older
She or he is not attending a formal educational center
• When someone was born before 1981 and lacks the mandatory basic education current at the time he or she should have completed it. Primary
• When someone was bornbefore 1982 and lacks the mandatory basic education current at the time she should have completed it. Secondary
How to determine thresholds of social deprivations?
When a person is not enrolled in or not entitled to receive medical services from:
Popular Insurance
A social security public institution
A private medical service
Acces to health services
How to determine thresholds of social deprivations?
Access to social
security
• If the worker does not receive medical services as a work benefit or through voluntary enrollment and a retirement investment plan
Direct access
Family nucleus
Other family nucleus and
voluntary enrollment
• If a person is not enrolled in an institution that provides medical services by voluntary enrollment.
• If the spouse,child, parent, -law of the head of household is not enrolled in an medical institution
If the person does not have a relative who has access to social security
If the person is not beneficiary of a social program of pensions for senior citizens
How to determine thresholds of social deprivations?
Quality of living spaces
When the material is cardboard sheets or residue material
Roofs
Walls
Floors
Overcrowding
When the material is mud or daub&wattle; reed, bamboo or palm; cardboard, metal or asbestos sheets; residue material
When the material of the floor is soil
When the ratio of people per room is greater than 2.5
How to determine thresholds of social deprivations?
Housing access to basic services
• When it is obtained from a well, river, lake, stream, or truck.
• When piped water is carried from another dwelling or gotten at a public faucet or hydrant
Water
Drainage
service
Electricity
• No drainage service.• When the drain is connected to
pipes leading to a river, lake, sea, ravine or crack
When there is no electricity
How to determine thresholds of social deprivations?
Food security
Food insecurity
Acess tofood
Deprivation due to lack of
access to food
Slight
Moderate
Severe
How to determine thresholds of social deprivations?
Food basket Non food basket
Minimum economic
wellbeing line
Changes on current consumption patterns
Calorics requirements & micronutrients
Rural & urban settings
Economic wellbeing
How to determine thresholds? Economic Wellbeing
Goods and services have an income
elasticity<1
Necessary goods & services
Rural & urban settings
•Estimates for incidence, depth and intensity (average number of deprivations)
•Population groups decomposable
•Dimension decomposable
•Comparability across time
•In the space of social rights, equivalent to M0=H·A
PROPERTIES
Rigorous
Social Deprivation Index (SDI) and MP measures:
satisfy a set of axiomatic properties (Alkire y Foster, 2007) the SDI also satisfies the validity, reliability and additivity properties (Gordon; 2007,2010)