Measuring Multidimensional Vulnerability in India

This paper examines the relationship between multidimensional poverty and multidimensional vulnerability. Unlike poverty, which describes the status of a household at a point of time, vulnerability captures the likelihood of a household falling into poverty, given the current status of the household. The paper has used data from the India Human Development Survey, 2005, employing a multidimensional measure both at the all-India level and the state level. The results indicate the superiority of the multidimensional measure over the one-dimensional income measure because policy can be pointed towards addressing the dimension of poverty that is lacking and that is the cause of some states’ vulnerability to poverty.