Assessing Poverty with Non-Income Deprivation Indicators: Pakistan, 2008-09.

Haroon Jamal


The approach to measure poverty in terms of financial
deprivation has been widely criticised in the literature of welfare and
wellbeing. It is argued that to understand the complex phenomenon of
poverty or to evaluate household or individual wellbeing, a
multidimensional exercise is imperative. This research quantifies the
level of multidimensional poverty in Pakistan using household data of
Pakistan Social and Living Standard Measurement Survey. Multidimensional
poverty in terms of the popular FGT (headcount, poverty gap, poverty
severity) indices is estimated for the year 2009. Indicators of human
poverty, poor housing and deprivation in household physical assets are
included in estimating poverty in multi-dimensional context. For
assessing the inter-temporal consistency in the methodology, poverty
indices are also developed for the year 2005. JEL classification: I32,
I31 Keywords: Poverty, Multidimensional, Categorical Principal Component
Analysis, Poverty Indices, Pakistan

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