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Working Paper Number SEHSD-WP2017-47
Brian Glassman

This paper creates a multidimensional measure of poverty that takes non-income deprivations into account, allows people in the same family to have different poverty rates, and accounts for the intensity of poverty.  This measure has seven dimensions: health, education, standard of living, consumption, economic security, housing quality, and neighborhood quality.  This paper also demonstrates the wide variety of analysis one can perform with a multidimensional poverty measure using the American Community Survey.  This analysis falls into three main categories.  First, comparing the official poverty measure to the multidimensional poverty measure.  Second, performing decompositions of the multidimensional poverty measure, which allow for the analysis of subgroup contributions to the poverty rate as well as each dimension’s contribution to the poverty rate.  Lastly, regressing the official poverty measure and the multidimensional poverty measure on demographic variables in order to determine the probabilities of being in poverty for different demographic groups.

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