nep-lam New Economics Papers
on Central and South America
Issue of 2016‒01‒18
six papers chosen by
Maximo Rossi
Universidad de la República

  1. Income and Beyond: Multidimensional Poverty in Six Latin American Countries By Diego Battiston, Guillermo Cruces, Luis Felipe Lopez Calva, Maria Ana Lugo and Maria Emma Santos
  2. Poverty and Inequality Dynamics in Manaus: Legacy of a Free Trade Zone ? By Marta Castilho; Marta Menendez; Aude Sztulman
  3. A counting multidimensional poverty index in public policy context: The case of Colombia By Roberto Carlos Angulo Salazar, Beatriz Yadira Diaz and Renata Pardo Pinzon
  4. Setting Weights in Multidimensional Indices of Well-Being By Koen Decancq and Maria Ana Lugo
  5. Measuring Multidimensional Poverty in Latin America: Previous Experience and the Way Forward By Maria Emma Santos
  6. Multidimensional Poverty in Bhutan: Estimates and Policy Implications By Maria Emma Santos and Karma Ura

  1. By: Diego Battiston, Guillermo Cruces, Luis Felipe Lopez Calva, Maria Ana Lugo and Maria Emma Santos
    Abstract: This paper presents empirical results of a wide range of multidimensional poverty measures for: Argentina, Brazil, Chile, El Salvador, Mexico and Uruguay, for the period 1992-2006. Six dimensions are analysed: income, child attendance at school, education of the household head, sanitation, water and shelter. Over the study period, El Salvador, Brazil, Mexico and Chile experienced significant reductions of multidimensional poverty. In contrast, in urban Uruguay there was a small reduction in multidimensional poverty, while in urban Argentina the estimates did not change significantly. El Salvador, Brazil and Mexico together with rural areas of Chile display significantly higher and more simultaneous deprivations than urban areas of Argentina, Chile and Uruguay. In all countries, access to proper sanitation and education of the household head are the highest contributors to overall multidimensional poverty. Creation-Date: 2009-09
  2. By: Marta Castilho (Instituto de Economia, Universidade Federal do Rio de Janeiro, Brazil); Marta Menendez (PSL, Université Paris-Dauphine, LEDa, IRD UMR DIAL); Aude Sztulman (PSL, Université Paris-Dauphine, LEDa, IRD UMR DIAL)
    Abstract: This study contributes to the literature on the social impacts of Special Economic Zones by analyzing the dynamics of poverty and inequality in the Brazilian state of Amazonas, where the Free Trade Zone of Manaus (FTZM) is located. Using census data, micro-decompositions and counterfactual simulations, we show that if labor income was a major driver of poverty and inequality declines for the municipality of Manaus in the 2000-2010 decade, non-labor income was far more important in the rest of the state of Amazonas. Our contrasting results illustrate both the benefits and limitations of the influence of the FTZM. A better targeting of both social policies and training programs could improve distributional outcomes in the whole area.
    Keywords: Free trade zone, poverty, inequality, Manaus, Brazil. _________________________________ Cette étude analyse la dynamique de la pauvreté et des inégalités dans l'état brésilien d'Amazonas, où se situe la zone de libre-échange de Manaus (FTZM), et vise ainsi à contribuer à la recherche sur les conséquences sociales des Zones Economiques Spéciales. A l’aide de données de recensement, et en mobilisant des méthodes de décompositions et de micro-simulations, nous montrons que les revenus du travail jouent un rôle déterminant dans la diminution de la pauvreté et des inégalités dans la municipalité de Manaus au cours des années 2000-2010. Tel n’est pas le cas dans le reste de l'état d'Amazonas, où ce sont les revenus autres que ceux du travail qui expliquent le déclin de la pauvreté et des inégalités. Ces résultats contrastés illustrent à la fois les avantages et les limites de l'influence de la FTZM. Un meilleur ciblage des politiques sociales ainsi que des programmes de formation pourraient contribuer à améliorer les résultats en termes de distribution des revenus dans l'ensemble de la région.; Free trade zone, poverty, inequality, Manaus, Brazil, zone franche, pauvreté, inégalités, Manaus, Brésil.
    JEL: D31 F16 F14 I32
    Date: 2015–12
  3. By: Roberto Carlos Angulo Salazar, Beatriz Yadira Diaz and Renata Pardo Pinzon
    Abstract: stable MICs.Previous multidimensional indicators adopted in Colombian, as the Unmet Basic Needs or the Living Conditions Index, lose their policy relevance and arguably have become poor instruments for poverty measurement. This paper presents the Colombian Multidimensional Poverty Index (CMPI), a synthetic indicator that overcomes the methodological problems that arose from previous multidimensional indices, and that has a broad public policy scope of use. The CMPI is based on the methodology of Alkire and Foster (2010); is composed of five dimensions (education of household members, childhood and youth conditions, health, employment and access to household utilities and living conditions); and uses a nested weighting structure, where each dimension is equally weighted, as is each indicator within each dimension. This paper proposes the CMPI to tracking multiple deprivations across the national territory, to monitor public policies by sector and to design poverty reduction goals, among other public policy uses. Analysis of the results demonstrates that multidimensional poverty in Colombia decreased between 1997 and 2010. Multidimensional poverty rates decreased in both urban and rural areas, but imbalances remain.
    Date: 2014–05
  4. By: Koen Decancq and Maria Ana Lugo
    Abstract: Multidimensional indices of well-being and deprivation have become increasingly popular, both in the theoretical and in the policy-oriented literature. By now, there is a wide range of methods to construct multidimensional well-being indices, differing in the way they transform, aggregate and weight the relevant dimensions. We use a unifying framework that allows us to compare the different approaches and to analyze the specific role of the dimension weights in each of them. In interplay with the choices on the transformation and aggregation, the weights play a crucial role in determining the trade-offs between the dimensions. Setting weights is hence inherently a delicate matter, reflecting important value judgements about the exact notion of well-being. From this perspective, we critically survey six methods that are proposed in the literature to set the weights. Creation-Date: 2008-08
  5. By: Maria Emma Santos
    Abstract: This paper states the need to design a multidimensional poverty index for the Latin America region (LA-MPI) that can monitor poverty trends in a cross-country comparable way, yet is also relevant to the particular regional context. We review the region’s rich experience with multidimensional poverty measurement, as well as Europe’s experiences with multidimensional measurement. We set a number of requirements for the LA-MPI to satisfy and specify the methodological criterions necessary to fulfill such requirements. Drawing from the review, we outline an LA-MPI composed of five dimensions: basic consumptions, education, health, housing and basic services, and work. We list the indicators within those dimensions that are desirable, as well as what indicators are feasible given existing data constraints.
    Date: 2014–05
  6. By: Maria Emma Santos and Karma Ura
    Abstract: This paper estimates multidimensional poverty in Bhutan applying a recently developed methodology by Alkire and Foster (2007) using the 2007 Bhutan Living Standard Survey data. Five dimensions are considered for estimations in both rural and urban areas (income, education, room availability, access to electricity and access to drinking water) and two additional dimensions are considered for estimates in rural areas only (access to roads and land ownership). Also, two alternative weighting systems are used: a baseline using equal weights for every dimension and another one using weights derived from the Gross National Happiness Survey (GNHS). Estimates are decomposed into rural and urban areas, by dimension and between districts. It is found that multidimensional poverty is mainly a rural phenomenon, although urban areas present non-depreciable level of deprivation in room availability and education. Within rural areas, when equal weights are used, deprivation comes at a second place, and deprivation in water at the last one. When GNHS weights are used, income deprivation has the highest contribution, followed by deprivation education, access to roads, room, electricity, land and, finally, water. Districts are ranked by their multidimensional poverty estimate and rankings are found to be robust for a wide range of poverty cutoffs. Then, the methodology is suggested as a potential formula for national poverty measurement as well as a tool for budget allocation among districts and, within them, among dimensions. Creation-Date: 2008-09

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