Poverty in Canada: Unidimensional and Multidimensional Measures Presented by: Lori J Curtis, PhD Department of Economics IARIW-BOK Conference, Seoul South Korea, April 26-28 2017
Background Unidimensional Measures Multidimensional Measures of Poverty of Poverty Can a single measure, such Is aggregating multiple as GDP/capita, income or measures of attainments or expenditure, adequately deprivations into a single represent the experience of multidimensional measure poverty (Atkinson, 2003; better? Sen, 2006)? subjective measures Weights Cut-offs IARIW-BOK Conference, Seoul South Korea, April 26-28 2017 PAGE 2
Background GDP measures have been used as an indication of the economic well-being (UNDP, 2016). viable indicator of aggregate economic growth limited as a description of the experience of wellbeing household production or the underground economy? health, leisure, environment, political freedom, or social justice? Income/expenditure historically commonly used measure in micro-level poverty studies. household production? health, leisure, environment, political freedom, or social justice? IARIW-BOK Conference, Seoul South Korea, April 26-28 2017 PAGE 3
Background Multidimensional measures of well-being/poverty gaining traction. In developing countries Multidimensional Poverty Index (MPI) (Alkire & Santos, 2010) Human Development Index (UNDP, 2010) Beginning in developed countries European Union (Alkire et al., 2014, Whelan et al 2014). US (Mitra & Brucker, 2014; Dhongde & Haveman, 2015). Canada (UNDP, 2016; Canada Index of Wellbeing, 2016) IARIW-BOK Conference, Seoul South Korea, April 26-28 2017 PAGE 4
Background PRESENTATION TITLE PAGE 5
Background PRESENTATION TITLE PAGE 6
Background PRESENTATION TITLE PAGE 7
Background Some countries have developed survey instruments for MDPI (see for example the Global MDPI project at http://www.ophi.org.uk/). Some have high quality longitudinal survey data to develop the instruments EU-SILC data in the European Union (Alkire et al., 2014, Whelan et al., 2014) Germany – SOEP (Suppa, 2016) Others parse together indicators using available data American Community Survey (Dhongde & Haveman, 2015) Current Population Survey and American Community Survey data (Mitra & Brucker, 2014) IARIW-BOK Conference, Seoul South Korea, April 26-28 2017 PAGE 8
Data This study compares constructed MDP measures with ‘traditional’ measures of poverty using multiple nationally representative data sources (pumf files) Cansim tables 384-0038 and 051-0005 are used to calculate the growth in GDP/capita over time. (http://www5.statcan.gc.ca/cansim) Survey of Household Spending (SHS) – 2003, 2005, 2007, and 2009 Canadian Community Health Survey (CCHS) - 2003, 2005, 2007, 2009, and 2012 Waiting for access to Master files of SHS and CCHS IARIW-BOK Conference, Seoul South Korea, April 26-28 2017 PAGE 9
Methods Growth GDP/capita is % change in annual expenditure based real GDP/population (chain-linked). SHS Income and expenditure measures are estimated per Crossley and Curtis, 2006. Households are considered poor if they have adjusted income or expenditure ≤ 0.5*median. MDP dimensions, indicators, and thresholds a la Dhongde & Haveman’s (2015) CCHS indicators are reported for households Statistics Canada weights are multiplied by household size poverty head counts. Paper presents sensitivity analysis of many measures – here present growth in GDP/capita, income and expenditure from SHS, Multidimensional from CCHS IARIW-BOK Conference, Seoul South Korea, April 26-28 2017 PAGE 10
Multidimensional Poverty Dimensions and Indicators Dimensions Indicators No Regular MD Household does not have a regular Health family physician Disability A household member is limited in activities by a disability No High School Highest adult educational level in household is less than high school Education certificate No Eng/Fr No one in household speaks an official Speaker language No Employment Major source of household income is not employment income Standard of Low Income Household income (adjusted) is in the Living bottom quintile of the income distribution. Do Not Own The house is not owned by a member of Home the household Housing Crowded There is not a bedroom for parent(s) and each child Food Insecure Food Insecure Index IARIW-BOK Conference, Seoul South Korea, April 26-28 2017
Mutlidimensional Poverty measure - CCHS Sensitivity MDP1 = No MD + Disability + No High school + No Eng/Fr + No employ income+ low income + crowded + house not owned MDP3 = No MD + Disability + No High school + No Eng/Fr + No employ income+ low income + food insecure + house not owned MDP 5 = MDPH without language (SHS comparison) MDP 7 = MDP H dropping PEI and NB (not available in 2009) MDP2 = MDP1 without home ownership MDP 4 = MDP 3 without home ownership MDP 6 = MDP 5 without home ownership MDP 8 = MDP 7 without home ownership MDP(H) = MDP1 (03 – 07) and MDP3 (09-12) MDP(NH) = MDP2 (03 – 07) and MDP4 (09-12) IARIW-BOK Conference, Seoul South Korea, April 26-28 2017
Indicators in CCHS Proportion of Individuals with stated Indicator in CCHS 2003 2005 2007 2009 2012 No MD 0.1413 0.1437 0.1597 0.1589 0.1545 0.0014 0.0014 0.0015 0.0015 0.0021 Disability 0.1068 0.1116 0.1064 0.0901 0.1121 Health 0.0012 0.0013 0.0012 0.0012 0.0019 No High school 0.0479 0.0366 0.0962 0.0889 0.0925 0.0009 0.0008 0.0012 0.0012 0.0017 No Language 0.0148 0.0110 0.0148 0.0142 0.0083 Education 0.0005 0.0004 0.0005 0.0005 0.0005 No Employ Income 0.0453 0.0433 0.0479 0.0484 0.0518 Standard of 0.0008 0.0008 0.0009 0.0009 0.0013 Low Income 0.0638 0.1468 0.1480 0.1500 0.1402 Living 0.0010 0.0014 0.0014 0.0015 0.0020 No Own Home 0.2080 0.1946 0.2213 0.2148 0.2353 0.0016 0.0016 0.0017 0.0017 0.0025 Crowded 0.1283 0.1024 0.1013 Housing 0.0013 0.0012 0.0012 Food Insecure 0.0813 0.0663 0.0806 0.0014 0.0010 0.0016 *Canadian respondents 25 to 64 years of age (2009 where PEI and NB are excluded – see text for explanation) IARIW-BOK Conference, Seoul South Korea, April 26-28 2017
Tetrachoric No Disability No No Low Not Crowd Food No Correlations between Regular High Empl Income Own Insecure English Indicators MD School Inc Home Speaker CCHS 2007 No Regular MD 1.0000 Disability -0.1510 No High School 0.0485 0.3201 1.0000 No Employment Income 0.0620 0.4360 0.4106 1.0000 Low Income 0.1345 0.3419 0.3911 0.6926 1.0000 Does Not Own Home 0.3008 0.1574 0.2310 0.4702 0.5933 1.0000 Crowded (<1 rm/person) 0.1562 -0.0069 0.1579 0.3071 0.4966 0.4783 1.0000 Food Insecure 0.1076 0.3717 0.2949 0.5514 0.6394 0.5173 0.3963 1.0000 No English Speaker 0.0651 0.0423 0.3188 0.2297 0.4209 0.2635 0.2695 0.2522 1.0000 IARIW-BOK Conference, Seoul South Korea, April 26-28 2017
Correlation Matrix Multidimensional Poverty Counts MDP1 MDP2 MDP3 MDP4 MDP5 MDP6 MDP7 MDP8 Count Count Count Count Count Count Count Count CCHS 2007 MDP1 Count 1.0000 MDP2 Count 0.9460 1.0000 MDP3 Count 0.9528 0.8937 1.0000 MDP4 Count 0.8826 0.9296 0.9455 1.0000 MDP5 Count 0.9945 0.9376 0.9470 0.8739 1.0000 MDP6 Count 0.9388 0.9917 0.8859 0.9207 0.9439 1.0000 MDP7 Count 0.9516 0.8832 0.9038 0.8196 0.9561 0.8879 1.0000 MDP8 Count 0.8887 0.9269 0.8354 0.8558 0.8925 0.9333 0.9448 1.0000 IARIW-BOK Conference, Seoul South Korea, April 26-28 2017
Tetrachoric Correlations Multidimensional Poverty Score ≥ 2 MDP1 MDP2 MDP3 MDP4 MDP5 MDP6 MDP7 MDP8 Count ≥ 2 Count ≥ 2 Count ≥ 2 Count ≥ 2 Count ≥ 2 Count ≥ 2 Count ≥ 2 Count ≥ 2 CCHS 2007 MDP1 Count ≥ 2 1.0000 MDP2 Count ≥ 2 0.9791 1.0000 MDP3 Count ≥ 2 0.9708 0.9436 1.0000 MDP4 Count ≥ 2 0.9408 0.9632 0.9693 1.0000 MDP5 Count ≥ 2 0.9949 0.968 0.9684 0.9312 1.0000 MDP6 Count ≥ 2 0.9792 0.9946 0.9389 0.9518 0.978 1.0000 MDP7 Count ≥ 2 0.9619 0.9289 0.935 0.8798 0.9682 0.9349 1.0000 MDP8 Count ≥ 2 0.9361 0.9591 0.8943 0.9043 0.9364 0.9602 0.9619 1.0000 IARIW-BOK Conference, Seoul South Korea, April 26-28 2017
Sensitivity Analysis 0.2500 0.2000 Proportion of Population 0.1500 0.1000 0.0500 0.0000 MDP H MDP NH MDPC 1 MDPC 2 MDPC 3 MDPC 4 MDPC 5 MDPC 6 2003 2005 2007 2009 2012 IARIW-BOK Conference, Seoul South Korea, April 26-28 2017
Poverty Measures with and without NB and PEI 0.25 0.2 Proportion of Population 0.15 0.1 0.05 0 2003 2005 2007 2009 2012 MDP H MDP NH MDPsm H MDPsm NH Economics
Well being/Poverty Measures 0.25 0.2 Proportion of Population 0.15 0.1 0.05 0 GDP/cap Income Expend MDP H MDP NH -0.05 2003 2005 2007 2009 2012 IARIW-BOK Conference, Seoul South Korea, April 26-28 2017
MDP Counts with Housing CCHS 60 50 Percent of Population 40 30 20 10 0 2003 2005 2007 2009 2012 0 1 2 3 4 5 6 7 8 mdp1u mdp1i mdp≥2 IARIW-BOK Conference, Seoul South Korea, April 26-28 2017
MDP Counts without Housing CCHS 70 60 50 Percent of Population 40 30 20 10 0 2003 2005 2007 2009 2012 0 1 2 3 4 5 6 7 mdp2u mdp2i MDP IARIW-BOK Conference, Seoul South Korea, April 26-28 2017
Recommend
More recommend
