Monetary and Multidimensional Child Poverty: Why They Differ
PEP working paper serie 2016-29
53 Pages Posted: 9 May 2018 Last revised: 11 Jul 2018
Date Written: November 1, 2016
We investigate the effect of parental education on the concordance/discordance between monetary and multidimensional child poverty. First, in a simple model of parental investment in child outcomes, we demonstrate that the misalignment between household income and parental education is a predictor of the mismatch between monetary and multidimensional child poverty. Indeed, a match between these two poverty measurements occurs whenever household income and parental education are correlated. Second, using Tanzania NPS data, we find that parental education has a negative effect on the probability that a monetarily non-poor child suffers some basic deprivations, and a positive effect on the likelihood that a monetarily poor child suffers no basic deprivations.
Keywords: Monetary child poverty, Multidimensional child deprivation, Maternal education, Heckman selection model
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