Modeling Multidimensional Indicators of Poverty in Africa

Abstract

Poverty is a condition in which a person or community is lacking the basic needs required for a minimum standard of well-being. Poverty can be measured using eco- nomic, social and environmental indicators. Past research on measuring poverty has been done using an income approach. The income approach considers only one dimen- sion of poverty and fails to consider other dimensions such as social and environmental dimensions. The aim of this study is to develop a concept of measuring poverty using a multidimensional approach.We used data from the Ethiopia Demographic Health Survey. Multi-Correspondence Analysis and Non Linear Principal Component Anal- ysis were used to extract and weight indicators of poverty.The weighted indicators were then used to construct a Poverty index.This index can assist policy makers in quantifying poverty.