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date: 22 November 2019

Abstract and Keywords

This chapter reviews the main features of multidimensional indices of inequality and poverty. For each of these cases, the discussion is divided into two approaches: a direct approach, where desirable properties are specified and a measure of inequality or poverty obtained; and the inclusive measure of well-being approach, where an index of individual well-being is defined in a first step, and the measure of inequality or poverty obtained in a second step. The emphasis will be on the properties that different measures satisfy and on the main justifications put forward when properties disagree. A systematic comparison between indices, whenever appropriate, is presented. Several policy applications of the indices are also discussed.

Keywords: multidimensional indicators, inequality, poverty, well-being

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