Revisions of the global multidimensional poverty index: indicator options and their empirical assessment

Abstract

This paper examines how normative reasoning was applied to empirical applications of different indicator options in order to revise the global Multidimensional Poverty Index (MPI) indicators in 2018, to better align with the SDGs. Given the emphasis in the SDGs on leaving no one behind, the household surveys used to estimate the global MPI were explored to see which could create individual-level MPIs, however this sharply reduced country coverage by half. Consistent criteria is applied to assess whether 33 potential additional indicators could be added to strengthen the global MPI. A certain set of criteria applied rules out new indicators. Finally, the paper both illustrates and describes the iterative interplay of normative and technical considerations underlying adjustments in three original indicators–child mortality, nutrition, and housing–which involves considering the joint distribution of alternative indicators across twenty trial measures for all countries.