The Portrait of a Decade: The Relationship Between The Alkire-Foster Index, Social Policies, And Economic Indicators In The Municipalities Of Bahia (2000-2010)

Abstract

This article investigates multidimensional poverty in the municipalities of Bahia, developing an econometric panel data model. The objective is to identify the effects of social policies and economic indicators on the poverty level of these municipalities, based on discussions about the economic development of Bahia and the approaches of Capabilities and Basic Needs. The proposed econometric model uses the Alkire-Foster Index of multidimensional poverty, constructed based on microdata from the 2000 and 2010 Censuses, as the dependent variable and explanatory variables associated with social policies and economic indicators. Additionally, it includes the proportion of elderly people in the population as a control variable and a categorical variable that divides the municipalities according to population criteria, with the aim of investigating the differences in the effects of the explanatory variables between municipalities. According to the estimates, economic variables significantly affect the poverty index of Bahian municipalities, with the same observed for the variables proportion of social benefits and proportion of elderly people. The proportion of pension benefits does not contribute to the reduction of poverty, according to the model estimates, which also indicate that there is a statistically significant difference only between small municipalities and those with a population over 100,000 inhabitants.