Statistical Analysis of Poverty in Oyo-State: A Q2-Approach

Abstract

The limited scope of uni-dimensional money-metric approach of analyzing poverty based on either expenditure or income has made approaches that allow poverty to be studied at several dimensions a necessity. It is in the light of this, that this study was aimed at analyzing poverty in Oyo State using a Q²-approach. This approach combined both quantitative and qualitative aspects of poverty. The quantitative aspect was based on the per capita expenditure head count index while the qualitative aspect was based on fuzzy set poverty index derived from the following pre- selected indicators: major source of water for drinking and cooking, type of fuel used for cooking, toilet facilities, electricity supply and information and communication technology (ICT). Estimates of both quantitative and qualitative poverty indices were obtained from the National Survey of households’ data having a total of 508 households. The per capita head count and fuzzy set poverty indices showed that 196 and 316 households were respectively poor. These estimates implied that approximately 39% and 62% percent of households were poor. The qualitative estimate further indicated that more than 50% of the households lacked access to the pre-selected deprivation indicators with lack of access to quality water ranking highest. The Q² Approach has therefore provided better insight into the nature of poverty in Oyo State. It has also identified provision of quality water as being paramount to any government-designed poverty intervention policy.

Keywords: Money-metric approach, Poverty, Q2-approach, Multi-dimensional approach, Head count index, Fuzzy set poverty index