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How to Integrate Macro and Micro Perspectives: An Example on Human Development and Multidimensional Poverty

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Abstract

When designing indicators of well being attention is focused on its multidimensionality and on aggregation across different dimensions. However, two other aspects need consideration: distribution of each indicator within its dimension (inequality) and joint distribution of individual achievements or—viceversa—of deprivations. Aim of this paper is to suggest a correction to the composite well-being index; correction that takes into account some aspects concerning the joint micro distribution of achievements across dimensions. As an example we correct the human development index by means of the multidimensional poverty index.

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Notes

  1. Although there is not a clear distinction between well-being and quality of life—both being multidimensional latent constructs—we consider the first to comprise only objective domains and the second to include also subjective perceptions of well-being.

  2. Ranks for the subset of 95 countries in our sample.

References

  • Alkire, S., and Foster, J. (2008). Counting and Multidimensional Poverty Measures. OPHI Working Paper 7.

  • Alkire, S., & Foster, J. (2009). Counting and multidimensional poverty measurement. Journal of Public Economics, 95(7–8), 476–487.

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  • Alkire, S., & Foster, J. (2011). Understandings and Misunderstandings of Multidimensional Poverty Measurement. Journal of Economic Inequality, 9(2), 289–314.

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  • Stiglitz, J., Sen, A., Fitoussi, J. P. (2009). Report by the commission on the measurement of economic performance and social progress.

  • UNDP (2011) Human development report.

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Authors and Affiliations

  1. Università Roma Tre, Rome, Italy

    Silvia Terzi

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  1. Silvia Terzi
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Correspondence to Silvia Terzi.

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Terzi, S. How to Integrate Macro and Micro Perspectives: An Example on Human Development and Multidimensional Poverty. Soc Indic Res 114, 935–945 (2013). https://doi.org/10.1007/s11205-012-0182-x

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  • DOI: https://doi.org/10.1007/s11205-012-0182-x

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