Children capabilities: A structural equation model for India

This paper has two main goals. The first is to provide a framework for studying children well being utilising a capability approach. A list of capabilities for children in developing countries is drawn and its methodological justification is provided. The second aim is to suggest an econometric model to estimate child well being, utilising the list of capabilities provided in the first part of the paper. The suggested econometric model is a Multiple Indicator Multiple Causes model (MIMIC), belonging to the class of Structural Equation Models. This model allows the use of functionings as indicators of well being and to link well being to exogeneous causes. The model is estimated on a sample of children from the central states of India.