Nicaragua: trend of multidimensional poverty, 2001-2009

This paper estimates multidimensional poverty in Nicaragua between 2001 and 2009, using data from the three most recent standard of living surveys that are available (2001, 2005 and 2009), and mainly following the methodology proposed by Alkire and Foster (2007 and 2011). For that purpose, 10 dimensions and three weighting systems are used: equal-weightings and two other systems based on the data themselves, one based on the first principal component scores, and the other based on the relative frequencies of dimensional deprivations (both of these systems are new to Nicaragua). Overall, the results show that the incidence, intensity and severity of multidimensional poverty in Nicaragua declined in 2001-2009, and particularly so between 2001 and 2005.