Working Paper
On the Dynamics of Multidimensional Chronic Poverty

Understanding chronic poverty and its evolution is complex given the amount of information involved. This paper proposes a new approach to analysing the evolution of chronic poverty in a multivariate setting using a Shapley decomposition of a multidimensional chronic poverty measure proposed by Alkire and colleagues. This makes it possible to assess a vast array of information to find the drivers of change in chronic poverty, and has proved to be a valuable tool in public policy programmes. We present an empirical application of the changes in chronic poverty in Argentina during the period 2004-12 using the Permanent Household Survey.