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The Many Dimensions of Poverty by Nanak Kakwani

By Nanak Kakwani

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Such a complete mapping of combinations of attributes into the utility space appears daunting, if not altogether utopian. This is the reason why efforts at measuring multidimensional poverty until now have limited themselves to dealing with at most four (and most typically only two) dimensions in their empirical applications – while showing that in theory their methods could be extended to cope with n dimensions. Let us now review some of these attempts and in the process highlight some related issues.

Are there non-sociological big classes? The long-standing presumption among sociologists has been that poverty is generated at the ‘site of production’ and that our three manifest classes (or some other class model) will therefore account for the structure of poverty (see, for example, Parkin, 1979). Although the latent class model allows one to fit confirmatory models that test these ‘sociological’ class schemes, it can also be used to fit exploratory models that allow classes to freely emerge outside the site of production.

1 to be perfectly defined by big-class membership, thus rendering latent classes manifest. 1, implies that the individuallevel variables are independent of one another within each big class and that subdividing into micro-classes or allowing for a gradational structure within big classes is accordingly unwarranted. 1, one would not be able to reject this big-class constraint. Are there non-sociological big classes? The long-standing presumption among sociologists has been that poverty is generated at the ‘site of production’ and that our three manifest classes (or some other class model) will therefore account for the structure of poverty (see, for example, Parkin, 1979).

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