An Exploratory Analysis of Inter-Temporal Multidimensional Poverty

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The approach to measure poverty in terms of financial deprivation has been widely criticised in the literature of welfare and well-being. It is argued that to understand the complex phenomenon of poverty or to evaluate household or individual well-being, a multidimensional exercise is imperative. This research quantifies the level of multidimensional poverty in Pakistan using latest available household data of the Pakistan Social and Living Standard Measurement Survey. Multidimensional poverty in terms of the popular FGT (headcount, poverty gap, poverty severity) indices is estimated for the year 2011. Indicators of human poverty, poor housing and deprivation in household physical assets are included in estimating poverty in a multidimensional context. For assessing the inter-temporal consistency in the methodology, poverty indices are also developed for the years 2009 and 2005.