Analyzing Racial and Ethnic Differences in the USA through the Lens of Multidimensional Poverty

This paper provides a unified framework for practitioners who wish to estimate alternative indices of multidimensional poverty. These alternative indices are used to estimate multidimensional poverty in the USA over the last decade with a focus on analyzing trends by race and ethnicity. Individual level data on five different dimensions of well-being are compiled over the last decade using annual Census surveys. We find that multidimensional poverty in the USA declined over time regardless of the index used. A higher incidence of multidimensional poverty was observed among Hispanics, American Indians and Blacks. Poverty ranking among racial/ethnic groups was robust to the indices used. Estimates of alternative indices highlight different aspects of multidimensional poverty and provide complementary information on poverty in the USA in the last decade.

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• School of Economics