Description:
Multidimensional poverty measures can in theory make well-being comparisons that are less biased than those solely based on monetary poverty. However, global multidimensional poverty measures suffer in practice from limitations that have led to credible criticisms. This paper presents the case for multidimensional poverty measures, two criticisms against their current implementations, as well as recently proposed solutions to improve on these criticisms. The paper develops a method for implementing these solutions in practice. The resulting well-being indicator is used to compare well-being across Nigerian states in 2019. This empirical illustration suggests that these solutions may substantially affect well-being comparisons. The paper also quantifies the potential bias inherent to comparing well-being solely based on monetary poverty. The results find substantially different well-being comparisons between the proposed well-being indicator and monetary poverty even though monetary poverty was (i) high in Nigeria in 2019 and (ii) very heterogeneously distributed across Nigerian states; and (iii) is integrated as one component of the proposed well-being indicator. The paper aims to improve global multidimensional poverty measures by making them more consistent with preference theory and by incorporating the direct impact of mortality, which deprives individuals of the most important functioning