Publication:
A Quick-Fix for Perverse Incentives Inherent in Mainstream Multidimensional Poverty Measures

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dc.contributor.authorDecerf, Benoit
dc.date.accessioned2025-05-05T16:39:19Z
dc.date.available2025-05-05T16:39:19Z
dc.date.issued2025-05-05
dc.description.abstractMost multidimensional poverty measures used in practice, including the global Multidimensional Poverty Index, are based on the adjusted headcount ratio. This paper shows that this poverty index provides perverse incentives. Policies that minimize this index prioritize targeting the least intensely poor individuals, rather than the most intensely poor individuals. This paper proposes a quick-fix solution that tweaks the adjusted headcount ratio without affecting the identification of the poor. The resulting index satisfies the same properties as the adjusted headcount ratio, except for Dimensional Breakdown. The paper argues that this is not a sufficient reason to discard this index, by providing two examples illustrating key limitations of the decomposition across dimensions permitted by Dimensional Breakdown. This decomposition does not provide the necessary information to find optimal policies. More importantly, this decomposition may mislead policy makers on the underlying sources of progress.en
dc.identifierhttp://documents.worldbank.org/curated/en/099407405052528815
dc.identifier.doi10.1596/1813-9450-11113
dc.identifier.urihttps://hdl.handle.net/10986/43155
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 11113
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectMULTIDIMENSIONAL POVERTY
dc.subjectGLOBAL MPI
dc.subjectADJUSTED HEAD-COUNT RATIO
dc.subjectDIMENSIONAL BREAKDOWN
dc.titleA Quick-Fix for Perverse Incentives Inherent in Mainstream Multidimensional Poverty Measuresen
dc.typeWorking Paper
dspace.entity.typePublication
okr.date.disclosure2025-05-05
okr.date.doiregistration2025-05-07T03:04:53.033787Z
okr.date.lastmodified2025-05-05T15:02:51Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099407405052528815
okr.guid099407405052528815
okr.identifier.docmidIDU-d4e50717-7525-4da6-8359-3f67a6745944
okr.identifier.doi10.1596/1813-9450-11113
okr.identifier.externaldocumentum40010891
okr.identifier.internaldocumentum40010891
okr.identifier.reportWPS11113
okr.import.id7288
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttps://documents.worldbank.org/curated/en/099407405052528815/pdf/IDU-d4e50717-7525-4da6-8359-3f67a6745944.pdfen
okr.region.geographicalWorld
okr.topicPoverty Reduction::Equity and Development
okr.topicPoverty Reduction::Inequality
okr.topicPoverty Reduction::Poverty Monitoring & Analysis
okr.unitDECPH:Poverty
okr.unitIneq. & Human Dev (DECPH)
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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