Unlocking Insights: A Step-by-Step Guide to Calculating Multidimensional Poverty Index (MPI) Using SPSS

A Step-by-Step Guide to Calculating the Multidimensional Poverty Index (MPI) Using SPSS

In poverty research, the Multidimensional Poverty Index (MPI) is a crucial tool for measuring poverty beyond income, capturing deprivations across multiple dimensions such as education and living standards. This blog outlines the exact SPSS code to compute MPI using specific survey indicators.

Let’s break down the process step by step:

Step 1: Compute the MPI Indicators

MPI is calculated based on two dimensions—Education and Living Standards—with specific indicators for each. Here’s how you can compute the binary deprivation indicators for each component:

Education Indicators (Weight: 1/4 for each)

1. Years of Schooling Completed
   COMPUTE FIVE_YRS_SCHOOLING_COMPLETED = Q403b < 5.

2. School-Aged Child Enrollment
   COMPUTE SCHOOL_AGED_CHILD_NOT_ENROLLED_IN_SCHOOL = Q404 = 1.

Living Standards Indicators (Weight: 1/12 for each)

1. No Electricity
   COMPUTE No_electricity = Q409_1 = 0.

2. Access to Clean Drinking Water
   COMPUTE ACCESS_TO_CLEAN_DRINKING_WATER = Q410 = 6 | Q410 = 7 | Q410 = 8 | Q410 = 10 | Q410 = 11 | Q410 = 12.

3. Access to Improved Sanitation
   COMPUTE ACCESS_TO_IMPROVED_SANITATION = Q413 = 10 | Q413 = 11 | Q413 = 12 | Q413 = 13.

4. Dirt Floor
   COMPUTE DIRT_FLOOR = Q407 = 1 | Q407 = 2.

5. Dirty Cooking Fuel
   COMPUTE DIRTY_COOKING_FUEL = Q412 = 7 | Q412 = 8 | Q412 = 9 | Q412 = 10 | Q412 = 11 | Q412 = 12.

6. Asset Holding
   COMPUTE ASSET_HOLDING = (Q409_2 = 0 & Q409_3 = 0 & Q409_4 = 0 & Q409_6 = 0 & Q409_7 = 0 & Q409_8 = 0 & Q409_9 = 0) & (Q409_11 = 0 | Q409_12 = 0).

Step 2: Weighting the Indicators

After computing the individual indicators, apply the appropriate weights:

• Education Indicators: Weight = 1/4

• Living Standard Indicators: Weight = 1/12

Example for the Years of Schooling Completed:
COMPUTE FIVE_YRS_SCHOOLING_COMPLETED_weighted = FIVE_YRS_SCHOOLING_COMPLETED * EDUCATION_WGHT.

Similarly, compute the weighted versions of all other indicators for education and living standards.

Step 3: Calculate the Deprivation Score

The deprivation score is a sum of the weighted indicators, with scores ranging from 0 to 1, where 1 represents the highest deprivation.
Syntax:
COMPUTE DEPRIVATION_SCORE = FIVE_YRS_SCHOOLING_COMPLETED_weighted + SCHOOL_AGED_CHILD_NOT_ENROLLED_IN_SCHOOL_weighted + No_electricity_WEIGHTED + ACCESS_TO_CLEAN_DRINKING_WATER_weighted + ACCESS_TO_IMPROVED_SANITATION_weighted + DIRT_FLOOR_weighted + DIRTY_COOKING_FUEL_weighted + ASSET_HOLDING_WEIGHTED.

Step 4: MPI Classification

Finally, classify households based on their deprivation scores:

• Non-Poor: 0-0.19

• Vulnerable to Poverty: 0.20-0.33

• Multidimensionally Poor: 0.34-0.50

• Severely Poor: 0.51+

Syntax:
RECODE DEPRIVATION_SCORE (0 thru 0.1999=1) (0.2000 thru 0.3333=2) (0.3334 thru 0.5000=3) (0.5001 thru Highest=4) INTO MPI_POVERTY_STATUS2.

Conclusion

By following these steps and using the corresponding SPSS code, you can efficiently compute the Multidimensional Poverty Index (MPI) and gain meaningful insights into poverty beyond income-based measures.

MPI helps identify vulnerable populations, prioritize areas of intervention, and assess the overall well-being of households. If you’re interested in further understanding poverty data and the SPSS process, this guide serves as a comprehensive starting point!