Multidimensional Deprivation in China, India and Vietnam: A Comparative Study on Micro Data

Preprint OPEN
Ranjan Ray ; Kompal Sinha (2011)
  • Subject: Multidimensional Deprivation, Wealth Index, Principal Component Analysis, Sub group Decomposability.
    • jel: jel:I10 | jel:I31 | jel:I32 | jel:O1

This study compares living standards in China, India and Vietnam using the recent multidimensional approach. A distinguishing feature of this study is the use of unit record data sets containing household level information on a wide range of variables including access to several dimensions of living, wealth and child health. The study uses household level information on a wide variety of indicators and the methodology of Principal Component Analysis to measure household wealth. The wealth index is then used to examine the distribution of deprivation and poverty by wealth percentiles. This paper uses the Lorenz curve for wealth and the pseudo Lorenz curves for deprivation and poverty to show that wealth, used here as a proxy for income, understates deprivation and poverty in all the three countries. The paper also provides evidence on child health, which is at odds with the overall progress that is portrayed by the multidimensional measures.