Monetary Poverty versus Multidimensional Poverty: An Empirical Reflection of Farming Household in Rural Area of Oyo state, Nigeria

International Journal of Research and Scientific Innovation (IJRSI) | Volume VIII, Issue IX, September 2021 | ISSN 2321–2705

Monetary Poverty versus Multidimensional Poverty: An Empirical Reflection of Farming Household in Rural Area of Oyo state, Nigeria

Adesiyan, O.I., Adelalu, K.O
Department of Agricultural Economics, Ladoke Akintola University of Technology Ogbomoso, Oyo state Nigeria

Abstract: This study examined empirically the relationship that exists between one-dimensional (monetary) poverty and multidimensional poverty of the farming households in rural area of Oyo State, Nigeria. Multistage sampling procedure was employed for the selection of 317 respondents in Ijaye, Ilora and Ido farm settlements respectively. Four dimensions were considered: education, consumption, housing/standard of living dimensions and the multidimensional poverty. Consumption equivalent of $1.25 per capita per day was used as poverty line for the monetary poverty. Concerning the relationship between income poverty and multidimensional poverty, income still play a major role in poverty determination, though multidimensional examination of poverty revealed better, deprivation of human basic capability, covering both one-dimensional and multidimensional poverty. The statistical revelation indicated that monetary headcount is about 87%, while multidimensional headcount is 82% respectively. The probit estimates results indicated that an increase in income alone in isolation of other deprivation variables cannot significantly reduce individual poverty.

Key words: multidimensional poverty, deprivations, one-dimensional poverty

I. INTRODUCTION

Poverty has been agreed upon to be a multifaceted phenomenon. Alkire,Roche and Summer(2013);Adeoti (2014) remarked that poverty embraces different dimensions, that associated with human capabilities and functionalities such as health, education, social inclusion, standard of living. Rocha (1998) observed that because there are varieties of poverty situation worldwide, this gave birth to different definitions, measurements and policies. In the same veil, Maxwell (1999) equally asserted that the complex nature of measuring poverty, dictates its complex definition, he observed that severity of this complex is more pronounced where people are allowed to ascertain their poverty status. In the same term with Maxwell (1999) observation, Hulme and Mosley (1996) explained that defining poverty and the composition of the poor are volatile issues in the academic realm. They further stressed that the central point in poverty definition, is a much broader phenomenon which hang on the sets of needs that allow human functionality

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