Poverty Lines and Their Role in Reducing Poverty

Author(s):  
John H. McKendrick
Keyword(s):  
2018 ◽  
Vol 53 (1) ◽  
pp. 513-527 ◽  
Author(s):  
Antonio M. Salcedo ◽  
Gregorio Izquierdo Llanes
Keyword(s):  

2020 ◽  
Vol 5 (9) ◽  
pp. e002450
Author(s):  
Nicole Bellows ◽  
Michelle Weinberger ◽  
Meghan Reidy

Family planning market segmentation approaches typically include analysis by wealth, particularly when considering whether individuals can afford out-of-pocket expenses in the private sector. Most commonly, this is done using the Demographic and Health Survey (DHS) wealth index, which uses a relative approach by summing household asset questions and categorising respondents into five groups from poorest to wealthiest within a country. In addition, the use of absolute measures, such as segmenting populations based on whether one lives below or above the International Poverty line, defined by the World Bank as US$1.90 per person per day, may provide further useful insights when designing strategies to ensure access to family planning. While such measures are not readily available in the DHS, a simple approach can be used to combine the wealth index and World Bank poverty lines to generate an absolute measure for an additional perspective when conducting family planning market segmentation. Family planning market size estimates were made for 24 low-income countries using wealth quintiles and World Bank poverty lines. The results show large variations in market size based on what measure is used, particularly for countries with a high density of poverty. Looking at both types of measures and understanding the reasons for the differences in market size estimates between the approaches can help lend a more nuanced understanding of the distribution of wealth and income in a country, leading to improved family planning market segmentation and ultimately to ensure more women have access to a method of their choice.


Author(s):  
Dean Jolliffe ◽  
Espen Beer Prydz

AbstractPoverty lines are typically higher in richer countries, and lower in poorer ones, reflecting the relative nature of national assessments of who is considered poor. In many high-income countries, poverty lines are explicitly relative, set as a share of mean or median income. Despite systematic variation in how countries define poverty, global poverty counts are based on fixed-value lines. To reflect national assessments of poverty in a global headcount of poverty, this paper proposes a societal poverty line. The proposed societal poverty line is derived from 699 harmonized national poverty lines, has an intercept of $1 per day and a relative gradient of 50 percent of median national income or consumption. The societal poverty line is more closely aligned with national definitions of poverty than other proposed relative lines. By this relative measure, societal poverty has fallen steadily since 1990, but at a much slower pace than absolute extreme poverty.


2020 ◽  
Vol 12 (21) ◽  
pp. 9081
Author(s):  
Md. Matiur Rahman ◽  
Seung-Hoon Jeon ◽  
Kyoung-Soo Yoon

Anti-poverty policies for sustainable development require efficient targeting, for which appropriate poverty lines play a crucial role. In Bangladesh, official poverty lines are estimated with the implicit assumption that there are no economies of scale in household consumption with respect to household size or composition, which raises the question of the accuracy and reliability of the measurement of poverty line. We test the existence of economies of scale, estimate their size, and assess the impact of applying equivalence scale to poverty measurement, using the 2010 Household Income and Expenditure Survey data of Bangladesh. The results confirm the existence of economies of scale in household consumption. Following the model developed by Kakwani and Son, the overall index of economies of scale in household consumption is estimated around 0.85. Modified poverty lines show that under official poverty lines, the probability of being poor is high with respect to household size. The result implies that the poverty head-count ratio(HCR) for households with large number of members might be overestimated in Bangladesh, and that there may be an incentive for low income families to enlarge family size to avail of anti-poverty public transfers.


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