Working Paper
Multidimensional Welfare in Districts of Zambia

A First Order Dominance Approach

In this paper we make welfare comparisons among districts of Zambia using multidimensional well-being indicators observed at the household level using the first order dominance approach developed by Arndt et al. in 2012. This approach allows welfare comparisons without making any assumptions about the relative importance of the indicators.

Analysis of the 2010 Census of Population and Housing data has generated information on the poverty status of provinces and districts in Zambia and has ranked them from the relatively well-off to the worse-off. This information has been presented on a map showing the districts according to their poverty status.

It is expected that this paper will contribute to fine-tuning geographic poverty targeting efforts in Zambia. The rationale is that with the availability of such analysis, it will be possible to make budgetary provisions that allow for the equitable distribution of public resources. The overriding objective of the government should be to channel public resources based on the spatial distribution of poverty.