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HomeHomework HelpeconomicsPoverty Measurement Techniques

Poverty Measurement Techniques

Poverty measurement techniques refer to the methodologies and tools used to assess and quantify the extent of poverty within a population, typically involving indicators such as income levels, consumption patterns, and access to basic needs. These techniques can include absolute and relative measures, as well as multidimensional approaches that consider various socioeconomic factors.

intermediate
3 hours
Economics
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Overview

Poverty measurement techniques are essential for understanding the extent and nature of poverty in society. These techniques include various methods such as the poverty line, headcount ratio, and the Multidimensional Poverty Index, each providing unique insights into the challenges faced by the poor...

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Key Terms

Absolute Poverty
A condition where an individual lacks the minimum resources to maintain basic living standards.

Example: Living on less than $1.90 a day.

Relative Poverty
A condition where an individual is poorer compared to the average standard of living in their society.

Example: Earning less than 50% of the median income.

Poverty Line
A threshold used to determine the minimum income level necessary to secure basic needs.

Example: The World Bank's international poverty line.

Multidimensional Poverty Index (MPI)
A measure that considers various deprivations in health, education, and living standards.

Example: A household lacking access to clean water and education.

Headcount Ratio
The proportion of a population that lives below the poverty line.

Example: If 20 out of 100 people are poor, the headcount ratio is 20%.

Poverty Gap Index
Measures the intensity of poverty by calculating the average shortfall of the total population from the poverty line.

Example: A poverty gap of $2 means the average poor person is $2 below the poverty line.

Related Topics

Income Inequality
The unequal distribution of income within a population and its effects on society.
intermediate
Social Exclusion
Understanding how certain groups are systematically disadvantaged in society.
intermediate
Welfare Economics
The study of how economic policies can improve social welfare.
advanced

Key Concepts

Absolute PovertyRelative PovertyPoverty LineMultidimensional Poverty Index