Summary. -This paper proposes a suitable theoretical framework for operationalizing the capability approach using the latent variable methodology. A structural equation model is specified to account for the unobservable and multidimensional aspects characterizing the concept of human development and to capture the mutual influence among different capabilities. The model is applied to Bolivian data for studying two ''basic'' capability domains relating to children: knowledge and living conditions. Individual capability indices are constructed from the estimation results and their empirical distributions analyzed. Our results show a strong interdependence between the above capabilities and confirm the role of exogenous factors in their determination.
This paper proposes a structural equation model to measure and explain female empowerment in Cambodia. Empowerment is defined as the decision-making ability of a woman regarding her strategic and non-strategic life choices. Grounded in the Capability Approach and in the gender economics literature this conceptualisation accounts for three key elements: resources, values/traditions, and decision-outcomes. These elements interact into a system of structural equations where a latent variable is specified to measure empowerment; decision-outcomes enter as partial metrics of empowerment; and resources, and values/traditions are modelled as exogenous factors. Stochastic dominance analysis is used to compare the empowerment status of women across life choices.
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