Skip to main content

Advertisement

SpringerLink
Log in

Multidimensional Poverty Index and Happiness

  • Research Paper
  • Published:
Journal of Happiness Studies Aims and scope Submit manuscript

Abstract

In recent years, income concepts have been criticized for being too narrow to capture human well-being. The broader “objective” capability approach and subjective well-being analyses have been highlighted as most prominent approaches which allow for well-being assessments beyond income. Recently, a combination of the capability and of the subjective well-being approach has been recommended to strengthen well-being analyses. Our paper further explores the relations of both approaches. Based upon micro data covering more than 2300 individuals from four villages in rural Karnataka (India), the paper empirically analyses to which degree objective capability deprivation reflected by the United Nations Development Programme’s Multidimensional Poverty Index coincides with reduced happiness. We find positive correlations between Multidimensional Poverty Index deprivation and lack of happiness for some dimensions; otherwise the correlation is weak for the majority of Multidimensional Poverty Index indicators. Our results suggest that “relativity” towards other villagers is crucial for happiness. Moreover, from a happiness perspective our findings show the necessity to integrate financial deprivation indicators and further “missing dimensions” of deprivation into the Multidimensional Poverty Index. Furthermore, it may be fruitful to measure multidimensional poverty on a household and individual level.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Source Model Village Data Base, own calculations and illustration, N = 995 households

Fig. 2

Source Model Village Data Base, own calculations, N = 2301 individuals

Similar content being viewed by others

Notes

  1. For more on the foundation and dimensions of Human Development refer to Sen (2009), Robeyns (2005) or to Veenhoven (2003) who discusses different capability sets required to achieve a happy life. For further information on the MPI see Sect. 2.2 or refer to Alkire and Robles (2015).

  2. For a detailed MPI description see Alkire and Santos (2010: 6–28) and Alkire and Santos (2011) for minor modifications; updates are highlighted in Alkire and Robles (2015).

  3. For relations of five personality traits, emotional intelligence and happiness see Hafen et al. (2011); for effects of emotional intelligence on subjective well-being refer to Koydemir et al. (2013).

  4. The villages are Chikanal, Chimalaggi, Kadivala and Mangalagudda, located in Bagalkot district.

  5. Access to drinking water was identified when people said they got their water from treated or untreated sources, public village taps, or covered wells.

  6. Note that this indicator differs from standard mortality statistics considering e.g. the number of deaths of children 0–5 years per 1.000 children. Here, the household is the unit of analysis and all household members are considered to be deprived if at least one child in the household has died (see Alkire and Santos 2010: 13).

  7. It has also been discussed that higher income may increase happiness only up to a certain level of income. For instance, Richard Easterlin (1974) has shown that in spite of GDP growth and increasing per capita income, happiness has not been rising in the U.S.

  8. Graham (2011: 113–116) finds that good social relations and friends can improve subjective well-being as a coping mechanism in the absence of public safety nets and because people value the support they get from and give to others. The significance of relational goods and interpersonal relationships for happiness has e.g. been addressed by Bruni (2008: 117).

  9. Alkire (2007: 356) emphasizes that the “ability to go about without shame” includes the tendency to experience emotions of shame when specific negative events occur, which requires subjective assessments as experiences and emotions are inherently subjective.

  10. As agency and empowerment reflect the extent to which “people feel themselves to be coerced and/or acting on their own initiative…” or to which “individuals feel empowered to bring about change” (Alkire 2007: 354) these feelings are inherently subjective and require subjective assessments.

  11. Inglehart et al. (2008) find the degree of democratisation and social tolerance to be major determinants of a growing sense of free choice and happiness. For political participation also refer to Graham (2011: 115–117).

  12. This amount corresponds to the rural poverty rate for Karnataka in 2005.

  13. Estimated marginal effects for all models are available upon request.

  14. Banerjee and Duflo (2007: 150) in contrast report that food shortages do negatively affect happiness. However, the difference may be due to the fact that fears and psychological stress in times of acute food shortages decrease happiness in the short-run but that people adapt to the long-run consequences of malnutrition.

  15. Contrary to many existing studies that find non-linearities in the relationship between age and happiness (e.g. Easterlin 2008), this cannot be confirmed for our villages. Corresponding estimations are not presented here.

  16. For example: almost all people in the four villages attach a very high value to the freedom to live a long and healthy life (Moczadlo et al. 2015: 555). However, as is shown here, even the death of household members does not necessarily reduce the peoples’ happiness. Therefore, to take into account their right to live and their freedom to live a long and healthy life which they highly value, mortality and health have to be assessed, irrespective of their impacts on happiness.

  17. The fact mentioned above that those who are more frequently ill are less happy does not contradict with the insignificance of unhealthy cooking, as many other health risks and diseases may make people unhappy.

References

  • Alkire, S. (2007). The missing dimensions of poverty data: Introduction to the special issue. Oxford Development Studies, 35(4), 347–359.

    Article  Google Scholar 

  • Alkire, S., & Robles, G. (2015). Multidimensional Poverty Index—2015: Brief methodological note and results. Oxford: Oxford Poverty and Human Development Institute.

    Google Scholar 

  • Alkire, S., & Santos, M. E. (2010). Acute multidimensional poverty: A new index for developing countries. Human Development Research Paper, 2010/11.

  • Alkire, S. & Santos, M. E. (2011). Acute multidimensional poverty: A new index for developing countries. In: Proceedings of the German development economics conference, No. 3, Verein für Socialpolitik.

  • Alsop, R., Bertelsen, M. F., & Holland, J. (2006). Empowerment in practice from analysis to implementation. Washington, D.C.: The World Bank.

    Google Scholar 

  • Anand, S., & Sen, A. (2000). Human development and economic sustainability. World Development, 28(12), 2029–2049.

    Article  Google Scholar 

  • Banerjee, A., Deaton, A., & Duflo, E. (2004). Wealth, Health, and health services in rural Rajastan. The American Economic Review, 94(2), 326–330.

    Article  Google Scholar 

  • Banerjee, A. V., & Duflo, E. (2007). The economic lives of the poor. Journal of Economic Perspectives, 21(1), 146–167.

    Article  Google Scholar 

  • Binder, M. (2014). Subjective well-being capabilities: Bridging the gap between the capability approach and subjective well-being research. Journal of Happiness Studies, 15, 1197–1217.

    Article  Google Scholar 

  • Blanchflower, D. G. & Oswald, A. J. (2011). International Happiness. Cambridge, Mass: National Bureau of Economic Research, Working Paper 16668.

  • Bookwalter, J. T., & Dalenberg, D. R. (2010). Relative to what or whom? The importance of norms and relative standing to well-being in South Africa. World Development, 38(3), 345–355.

    Article  Google Scholar 

  • Brown, P. H., Bulte, E., & Zhang, X. (2011). Positional spending and status seeking in rural China. Journal of Development Economics, 96(1), 139–149.

    Article  Google Scholar 

  • Bruni, L. (2008). Back to aristotle? Happiness, eudaimonia, and relational goods. In B. Luigino, F. Comim, & M. Pugno (Eds.), Capabilities and happiness (pp. 114–139). Oxford: Oxford University Press.

    Google Scholar 

  • Crespo, R. F., & Mesurado, B. (2015). Happiness economics, eudaimonia and positive psychology: From happiness economics to flourishing economics. Journal of Happiness Studies, 16, 931–946.

    Article  Google Scholar 

  • Daraei, M., & Mohajery, A. (2013). The impact of socioeconomic status on life satisfaction. Social Indicators Research, 112(1), 69–81.

    Article  Google Scholar 

  • Deaton, A. (2008). Income, health and well-being around the world: Evidence from the gallup world poll. Journal of Economic Perspectives, 22(2), 53–72.

    Article  Google Scholar 

  • Diener, E., Lucas, R., Schimmack, U., & Helliwell, J. F. (2009). Well-being for public policy. New York: Oxford University Press.

    Book  Google Scholar 

  • Easterlin, R. A. (1974). Does Economic growth improve the human lot? In P. A. David & M. W. Reder (Eds.), Nations and households in economic growth: Essays in honor of Moses Abramovitz (pp. 89–125). New York: Academic Press Inc.

    Google Scholar 

  • Easterlin, R. A. (2008). Life cycle happiness and its sources: Why psychology and economics need each other. In B. Luigino, F. Comim, & M. Pugno (Eds.), Capabilities and happiness (pp. 28–59). Oxford: Oxford University Press.

    Google Scholar 

  • Frey, B. S., & Stutzer, A. (2002). Happiness and economics: How the economy and institutions affect well-being. Princeton: Princeton University Press.

    Google Scholar 

  • Gasper, D. (2005). Subjective and objective well-being in relation to economic inputs: Puzzles and responses. Review of Social Economy, 63(2), 177–206.

    Article  Google Scholar 

  • Graham, C. (2005). Insights on development from the economics of happiness. The World Bank Research Observer, 20(2), 201–231.

    Article  Google Scholar 

  • Graham, C. (2008). Some insights on development from the economics of happiness. In B. Luigino, F. Comim, & M. Pugno (Eds.), Capabilities and happiness (pp. 81–113). Oxford: Oxford University Press.

    Google Scholar 

  • Graham, C. (2011). Adaptation amidst prosperity and adversity: Insights from happiness studies from around the world. The World Bank Research Observer, 26(1), 105–137.

    Article  Google Scholar 

  • Greene, W. (2011). Econometric analysis (7th ed.). New Jersey: Prentice Hall.

    Google Scholar 

  • Haagenars, A., de Vos, K., & Zaidi, M. A. (1994). Poverty statistics in the late 1980s: Research based on micro-data. Luxembourg: Office for Official Publications of the European Communities.

    Google Scholar 

  • Hafen, C. A., Singh, K., & Laursen, B. (2011). The happy personality in India: The role of emotional intelligence. Journal of Happiness Studies, 12(5), 807–817.

    Article  Google Scholar 

  • Helliwell, J. F., & Barrington-Leigh, C. P. (2010). Viewpoint: Measuring and understanding subjective well-being. Canadian Journal of Economics, 43(3), 729–753.

    Article  Google Scholar 

  • Holder, M. D., Coleman, B., & Singh, K. (2012). Temperament and Happiness in Children in India. Journal of Happiness Studies, 13(2), 261–274.

    Article  Google Scholar 

  • Howell, R. T., & Howell, C. J. (2008). The relation of economic status to subjective well-being in developing countries: A meta-analysis. Psychological Bulletin, 134(4), 536–560.

    Article  Google Scholar 

  • Huang, J. (2013). Asset poverty and happiness in Urban China. China Journal of Social Work, 6(2), 163–176.

    Article  Google Scholar 

  • Ibrahim, S., & Alkire, S. (2007). Agency and empowerment: A proposal for internationally comparable indicators. Oxford Development Studies, 35(4), 379–403.

    Article  Google Scholar 

  • India Human Development Report. (2011). Towards social inclusion. New Delhi: Oxford University Press, Institute of Applied Manpower Research.

    Google Scholar 

  • Inglehart, R., Foa, R., Peterson, C., & Welzel, C. (2008). Development, freedom and rising happinesss: A global perspective (1981–2007). Perspectives on Psychological Science, 3(4), 264–285.

    Article  Google Scholar 

  • Kahneman, D., Diener, E., & Schwarz, N. (1999). Well-being: The foundations of hedonic psychology. New York: Russell Sage.

    Google Scholar 

  • Koydemir, S., Simsek, Ö. F., Schütz, A., & Tipandian, A. (2013). Differences in how trait emotional intelligence predicts life satisfaction: The role of affect balance versus social support in India and Germany. Journal of Happiness Studies, 14(1), 51–66.

    Article  Google Scholar 

  • Long, J. S., & Freese, J. (2014). Regression models for categorical dependent variables using stata (3rd ed.). College Station, TX: Stata Press.

    Google Scholar 

  • Moczadlo, R., Strotmann, H., & Volkert, J. (2015). Corporate contributions to developing health capabilities. Journal of Human Development and Capabilities, 16(4), 549–566.

    Article  Google Scholar 

  • Neff, D. (2012). Adaptation, poverty and subjective well-being: Evidence from South India. In D. A. Clark (Ed.), Adaptation, poverty and development. The dynamics of subjective well-being (pp. 137–157). Houndmills: Palgrave Macmillan.

    Google Scholar 

  • Noll, H.-H. (2013). Subjective social indicators: Benefits and limitations for policy making. Social Indicators Research, 114(1), 1–10.

    Article  Google Scholar 

  • Pressman, S., & Summerfield, G. (2002). Sen and capabilities. Review of Political Economy, 14(4), 89–113.

    Article  Google Scholar 

  • Rai, Y., Dutta, T., & Gulati, A. K. (2010). Quality of Life of HIV-infected people across different stages of infection. Journal of Happiness Studies, 11(1), 61–69.

    Article  Google Scholar 

  • Reddy, B., & Olsen, W. (2012). Adaptation of the rural working class in India: A case study of migrant workers. In D. A. Clark (Ed.), Adaptation, poverty and development. The dynamics of subjective well-being (pp. 181–214). Houndmills: Palgrave Macmillan.

    Google Scholar 

  • Robeyns, I. (2005). The capability approach: A theoretical survey. Journal of Human Development, 6(1), 93–114.

    Article  Google Scholar 

  • Royo, M. G., & Velazco, J. (2006). Exploring the relationship between happiness, objective and subjective well-being: Evidence from rural Thailand, ESRC research group on well-being in developing countries, WeD working paper 16, University of Bath, Bath UK.

  • Schimmel, J. (2009). Development as happiness: The subjective perception of happiness and UNDP’s analysis of poverty, wealth and development. Journal of Happiness Studies, 10(1), 93–111.

    Article  Google Scholar 

  • Sen, A. (1985). Well-being, agency and freedom: the Dewey Lectures 1984. The Journal of Philosophy, 82(4), 169–221.

    Google Scholar 

  • Sen, A. (1992). Inequality reexamined. New York: Oxford University Press.

    Google Scholar 

  • Sen, A. (1999). Development as freedom. Oxford: Oxford University Press.

    Google Scholar 

  • Sen, A. (2009). The idea of justice. London: Penguin.

    Google Scholar 

  • UNDP. (2010). Human development report 2010. New York: The Real Wealth of Nations: Pathways to Human Development.

    Book  Google Scholar 

  • Veenhoven, R. (1984). Conditions of happiness. Boston, Lancaster: Reidel, Dordrecht.

    Book  Google Scholar 

  • Veenhoven, R. (2003). Arts-of-Living. Journal of Happiness Studies, 4(4), 373–384.

    Article  Google Scholar 

  • Veenhoven, R. (2015). Informed pursuit of happiness: What we should know, do know and can get to know. Journal of Happiness Studies, 16(4), 1035–1071.

    Article  Google Scholar 

  • Volkert, J., Strotmann, H., & Moczadlo, R. (2014). Sustainable human development, corporate potentials and challenges. The case of Bayer CropScience's cotton seed production in rural Karnataka (India), UFZ-Centre for Environmental Research, UFZ discussion paper 5/2014—GeNECA 11, Leipzig.

  • Wagstaff, A., Claeson, M., Hecht, R. M., Gottret, P., & Fang, Q. (2006). Millennium development goals for health: What will it take to accelerate progress? Disease control priorities in developing Countries. In D. T. Jamison (Ed.), Disease control, priorities in developing Countries (pp. 181–194). Washington, D.C.: Oxford University and the World Bank.

    Google Scholar 

  • World Bank. (2012). Jobs, world bank report 2013. Washington, D.C.: World Bank.

    Book  Google Scholar 

Download references

Acknowledgments

The paper uses micro-level household and individual data generated within an independent scientific evaluation of the “BayerCrop Science Model Village Project (MVP)”. Survey costs are funded by Bayer CropScience. The authors are independent in their research and have no conflict of interest. We thank two anonymous referees for their valuable comments. All remaining errors are our own.

Author information

Authors and Affiliations

  1. Pforzheim University, Tiefenbronner Str. 65, 75175, Pforzheim, Germany

    Harald Strotmann & Jürgen Volkert

Authors
  1. Harald Strotmann
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Jürgen Volkert
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Harald Strotmann.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Strotmann, H., Volkert, J. Multidimensional Poverty Index and Happiness. J Happiness Stud 19, 167–189 (2018). https://doi.org/10.1007/s10902-016-9807-0

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10902-016-9807-0

Keywords

JEL Classification

Search

Navigation