Latin America

- Argentina

- Mexico

To come

- Brasil, Chile, Peru, El Salvador

Basic Facts• Mexico

– Population: 110 million – GNI per capita (PPP): $12,000– Growth in 1995-2005: 3.7%

• 1995 – 2000: 5.6%

• 2000 – 2005: 1.8%

• Argentina– Population: 40 million – GNI per capita (PPP): $11,670 – Growth in the 1995-2005: 2.1%

• 1999- 2002: - 5%

“Que dicen los pobres”• Voices of the poor, in Mexico• 3,000 “poor” people (adults) were interviewed • They were asked to name and rank the most

important aspects of deprivation and the said: 1. Income

2. Access of drinking water

3. Education

4. Health

5. Nutrition

6. Shelter

Datasets • Mexico: ENIGH (Encuesta Nacional de Ingresos y

gastos de los Hogares). Nationally representative. Years: 1994, 2000, 2006.

• Argentina: EPH (Encuesta Permanente de Hogares). Urban, 60% total population. Years: 1995, 2000, 2003

• Unit of Analysis: Individuals – Households • Poverty measures regularly used:

– Poverty Line (Food, Capabilities, Patrimony): Hincome

– Unsatisfied Basic Needs: H

Selected Indicators & Deprivation Cutoffs

Indicator Deprivation Cutoff

INCOME Food Poverty Line: aprox US$ 2 a day

RUNNING WATER Not having tap water in the dwelling

SCHOOLING OF HH Head of the household with 4 or less years of schooling

CHILD IN SCHOOL At least one child (6-16) not attending school

SHELTERArgentina: wall material – mud, cardboard, metal Mexico: unfinished floor

SANITATION Not having flush toilet or pit latrine. (MDG).

RESULTS - Argentina and Mexico

0.000

0.050

0.100

0.150

0.200

0.250

0.300

0.350

0.400

Income: Foodpoverty

H - k=3, rankingweigh

M0 - k=3,ranking weight

Income: Foodpoverty

H - k=3, rankingweigh

M0 - k=3,ranking weight

Argentina Mexico

1994/1995 2000 2003/2006

ARGENTINAIncidence of deprivations

Years weighting schemes

Indicator 1995 2000 2003equal weight'

ranking weights'

Income: Food poverty 0.104 0.136 0.338 1 2.4

Running water 0.025 0.015 0.009 1 1.8

Child in school 0.032 0.016 0.014 1 0.6

Schooling of HH 0.159 0.158 0.131 1 0.6

Sanitation 0.113 0.086 0.067 1 0.3

Shelter 0.023 0.019 0.020 1 0.3

Total population 17,587,316 21,315,256 21,734,414 6 6

ARGENTINAH and Mo for different k values -

Ranking weights

k Deprivation headcount (H)   M0

  1995 2000 2003   1995 2000 2003

1 0.125 0.146 0.343 0.037 0.040 0.081

2 0.119 0.142 0.341 0.035 0.038 0.081

3 0.035 0.044 0.086   0.016 0.018 0.032

4 0.009 0.008 0.007 0.005 0.004 0.003

5 0.002 0.002 0.001 0.002 0.001 0.001

6 0.000 0.000 0.000   0.000 0.000 0.000

0.104 0.136 0.338 Income Poverty Headcount

Source: Own estimates from EPH 1995, 2000 and 2003

M0=0.016 M0=0.018 M0=0.032

ARGENTINA Contribution of each indicator to

M0 when k=3 and ‘ranking’ weight

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1995 2000 2003

Income: Food poverty Running water Child in school Schooling of HH Sanitation Shelter

ARGENTINAH and Mo for different k values –

‘equal weight’

k Deprivation headcount (H)   M0

  1995 2000 2003   1995 2000 2003

1 0.338 0.323 0.430 0.076 0.072 0.097

2 0.090 0.083 0.127   0.035 0.032 0.046

3 0.022 0.020 0.020 0.012 0.011 0.011

4 0.005 0.003 0.003 0.004 0.002 0.002

5 0.001 0.000 0.000 0.001 0.000 0.000

6 0.000 0.000 0.000   0.000 0.000 0.000

0.104 0.136 0.338 Income Poverty Headcount

Source: Own estimates from EPH 1995, 2000 and 2003

ARGENTINAContribution of each indicator to

M0 when k=2 and ‘equal’ weight

M0=0.035 M0=0.032 M0=0.046

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1995 2000 2003

Income: Food poverty Running water Child in school Schooling of HH Shelter Sanitation

MEXICOIncidence of deprivations

Years Equal

weight Ranking weight

Indicator 1995 2000 2003

Income: food poverty .158 .185 .106 1 2.4

Income: capability .229 .252 .161

Running water .166 .089 .096 1 1.8

Child in school .126 .087 .067 1 0.6

Schooling of HH .447 .373 .302 1 0.6

Sanitation .251 .263 .097 1 0.3

Unfinished floor .134 .096 .070 1 0.3

Total households 19,692,850 23,667,479 26,541,327

MEXICOH and Mo for different k values –

Ranking weight

k

Deprivation headcount (H)   M0

1994 2000 2006   1994 2000 2006

1 0.307 0.257 0.202   0.161 0.128 0.080

2 0.244 0.223 0.153   0.136 0.114 0.065

3 0.170 0.159 0.085   0.110 0.096 0.044

4 0.073 0.053 0.027   0.057 0.040 0.018

5 0.055 0.037 0.014   0.046 0.030 0.011

6 0.012 0.006 0.001   0.012 0.006 0.001

  0.158 0.185 0.106 Income Poverty Headcount

Source: Own estimates from ENIGH 1994, 2000 and 2006

MEXICOContribution of each indicator

to M0 when k=2 and ranking weightM0=0.041 M0=0.036 M0=0.048

0%

20%

40%

60%

80%

100%

1995 2000 2003

Subsistence income Drinking water School attendance

Literacy Dwelling material Improved sanitation

MEXICOH and Mo for different k values –

‘equal weight’

kDeprivation headcount (H)   M0

1994 2000 2006   1994 2000 2006

1 0.543 0.478 0.411   0.209 0.175 0.120

2 0.260 0.205 0.141   0.150 0.116 0.068

3 0.182 0.147 0.071   0.121 0.094 0.043

4 0.081 0.053 0.020   0.065 0.041 0.015

5 0.019 0.010 0.003   0.017 0.009 0.002

6 0.012 0.006 0.001   0.012 0.006 0.001

  0.158 0.185 0.106 Income Poverty Headcount

Source: Own estimates from ENIGH 1994, 2000 and 2006

MEXICOContribution of each indicator

to M0 when k=2 and ‘equal’ weightM0=0.041 M0=0.036 M0=0.048

0%

20%

40%

60%

80%

100%

1995 2000 2003

Subsistence income Drinking water School attendance

Literacy Dwelling material Improved sanitation