Paper short abstract:

This paper makes both methodological and empirical contributions to the literature. The methodological contribution involves the adaptation of the AF multidimensional poverty method to construct several vulnerability thresholds, while the empirical contribution entails testing the method on a survey

Paper long abstract:

The definition and measurement of poverty continue to dominate both public and academic space in most developing countries, where policy efforts are being continuously geared towards strengthening social protection and network to alleviate poverty. However, a key concern in the poverty literature is that emphasis is usually on the poor or poorest individuals. There are scarcely empirical studies that examine the vulnerable non-poor individuals, who might narrowly miss predetermined poverty threshold(s) and are usually susceptible to poverty at any slightest negative socio-economic shock. Thus, previous empirical studies tend to underestimate the size of the population that is vulnerable to poverty. Using the theoretical frameworks that define individuals in terms of their (in)vulnerability to poverty, this paper makes both methodological and empirical contributions to the poverty literature. The methodological contribution involves the adaptation of the Alkire-Foster multidimensional poverty approach to construct several vulnerability thresholds/indices around the borderlines of multidimensional poverty cut-off. The empirical contribution entails using the method on South African datasets to estimate the vulnerability of non-poor individuals to multidimensional poverty, and compare the vulnerability index with poverty and chronic poverty indices. Finding indicates that the proportion of vulnerable individuals remains relatively higher than those in chronic poverty. Further finding suggests that providing decent and stable employment could be a more effective escape route from poverty and vulnerability. The findings portend the potential usefulness of the vulnerability index as a tool for informing and reviewing future socio-economic policies and interventions which could further improve social welfare.