Transitions to old age: a multidimensional poverty approach for Chile

Evaluating deprivation among individuals transitioning to older ages requires a multidimensional approach to evaluate their diverse needs. Despite its importance, research on this topic remains limited in the developing world, particularly in Latin America. This study tracks the multidimensional poverty of a cohort of Chileans as they transition into older age, following them longitudinally across three waves (2006, 2009, and 2015). We construct a multidimensional poverty index (MPI) for individuals born in 1955 or earlier using the Alkire and Foster methodology, considering deprivation across four key dimensions: education; labor and social security; health; and housing. Our findings reveal a decrease in multidimensional poverty from 21 percent to 14 percent during the study period, with chronic multidimensional poverty affecting 9 percent of this population. The most significant reduction in deprivation is observed in the labor and social security dimension. However, this dimension also exhibits the highest persistence of deprivation and the most pronounced gender disparities, highlighting the need for targeted policy interventions. Notably, education emerges as a strong protective factor against both current and future poverty. This study contributes to the scarce literature on dynamic multidimensional poverty among older adults in Latin America and provides valuable insights for policy makers to design effective strategies that address the unique challenges faced by this growing population segment.