A Counting Approach for Measuring Multidimensional Deprivation

24 Pages Posted: 16 Jun 2012

See all articles by Rolf Aaberge

Rolf Aaberge

Statistics Norway; Institute for the Study of Labor (IZA); Deaprtment of Economics

Eugenio Peluso

University of Verona - Department of Economics

Abstract

This paper is concerned with the problem of ranking and quantifying the extent of deprivation exhibited by multidimensional distributions, where the multiple attributes in which an individual can be deprived are represented by dichotomized variables. To this end we first aggregate deprivation for each individual into a "deprivation count", representing the number of dimensions for which the individual suffers from deprivation. Next, by drawing on the rank-dependent social evaluation framework that originates from Sen (1974) and Yaari (1988) the individual deprivation counts are aggregated into summary measures of deprivation, which prove to admit decomposition into the mean and the dispersion of the distribution of multiple deprivations. Moreover, second-degree upward and downward count distribution dominance are shown to be useful criteria for dividing the measures of deprivation into two separate subfamilies. To provide a normative justification of the dominance criteria we introduce alternative principles of association (correlation) rearrangements, where either the marginal deprivation distributions or the mean deprivation are assumed to be kept fixed.

Keywords: multidimensional deprivation, counting approach, partial orderings, rank-dependent measures of deprivation, principles of association rearrangements

JEL Classification: D31, D63, I32

Suggested Citation

Aaberge, Rolf and Peluso, Eugenio, A Counting Approach for Measuring Multidimensional Deprivation. IZA Discussion Paper No. 6589, Available at SSRN: https://ssrn.com/abstract=2085176

Rolf Aaberge (Contact Author)

Statistics Norway ( email )

N-0033 Oslo
Norway

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Deaprtment of Economics ( email )

Norway

Eugenio Peluso

University of Verona - Department of Economics ( email )

Via dell'Artigliere, 8
37129 Verona
Italy

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