Model-based multidimensional poverty indices: theoretical construction and statistical properties

Abstract

This thesis is concerned with the operationalisation of the "Capability Approach" (CA) in order to obtain quantitative measures of Human Development in various domains. It consists of three essays that quantify well-being, poverty and female empowerment in the "capability" space. The first essay applies the methodology developed by Krishnakumar (Journal of Human Development 2007) for operationalizing the CA using structural equation latent variable modelling, for estimating and analyzing basic capabilities in the knowledge and living conditions domains for Bolivian children. The second essay extends this model-based approach for measuring deprivation in the functioning-capability space, in the presence of multiple-dimensions and multiple-indicators. Finally, the third essay proposes a structural model for measuring female empowerment in a capability perspective, using the intra-household gender dynamics literature as the theoretical support. These three key contributions show the importance of going beyond descriptive measures to adequately target the most vulnerable groups.