Multidimensional approach to poverty measurement: fuzzy measures of the incidence and the depth of poverty

The paper presents a methodology for study of multi-dimensional aspects of poverty. In addition to the traditional uni-dimensional measures of poverty, exclusively estimated on the basis of the monetary variable (income or expenditure), other non-monetary variables are incorporated in analysis of the poverty phenomenon. The multidimensional approach has been based on the fuzzy sets theory in which the conventional poor/non-poor dichotomy is replaced by assessment of the degree of household poverty threat. The same methodology facilitates comprehensive monetary and non-monetary poverty analysis. In order to provide effective assessment of poverty the fuzzy measures of poverty were applied. The study employs the fuzzy measures to compare the degree of monetary poverty and deprivation threat in Polish voivodships in 2007 using micro data from the EU-SILC survey. The results of estimation of the fuzzy measures show that poverty in Poland has many dimensions and that its measurement solely from income standing vantage point is highly insufficient.