Measuring Poverty Using Both Income and Wealth

2005 ◽  
Author(s):  
Jay L. Zagorsky
Keyword(s):  
Poverty Line ◽  
Financial Resources ◽  
Measurement Tool ◽  
Poverty Measures ◽  
Poor Families ◽  
Poverty Status ◽  
Wealth Building

Since official U.S. poverty measures are based solely on income, the amount of wealth held by a family is immaterial in determining their poverty status. This research expands the poverty definition to encompass a family’s total financial resources. While most income-poor families have little or no wealth, approximately one-third have significant holdings. Using total financial resources both lowers average U.S. poverty rates over selected years from 15.2% of all families to a range between 8.8% and 11.3% and provides a measurement tool for tracking the effects of government wealth-building programs on families under the poverty line.

scholarly journals FINANCIAL AND SOCIAL CHALLENGES FACING PENSIONERS LIVING ALONE BELOW THE POVERTY LINE DURING THE COVID-19 PERIOD: THE CASE OF GEORGIA

2021 ◽  
Vol 15 (2) ◽  
pp. 61-72
Author(s):  
Anastasia Kitiashvili ◽  
Tamar Makharadze
Keyword(s):  
Social Relationships ◽  
The Elderly ◽  
Poverty Line ◽  
Vital Role ◽  
Living Alone ◽  
Vulnerable Groups ◽  
Financial Resources ◽  
Income Source ◽  
Social Challenges ◽  
Study Participants

Restrictions, physical distancing and lockdown imposed during Covid-19 are associated with many challenges such as financial shortages and lack of social relationships, which have been particularly damaging for vulnerable groups dependent on others. This research aims to study financial and social challenges faced by one of the vulnerable social groups-pensioners living alone below the poverty line during the covid-19 period in four Georgia municipalities (Bolnisi, Dmanisi, Tianeti and Kaspi) in July-August 2020. The survey was conducted with 475 respondents (confidence level 95, interval 4), but 11 questionnaires were discarded due to technical deficiencies. The analysis was performed on 464 data. The study used available sampling where gender (strata) representation was maintained. 78.6% were female and 21.14% male. Overall, the elderly is a fairly vulnerable group in municipalities and across the country. The biggest problem during the pandemic period was a lack of financial resources. The study participants' primary income source is social assistance and various pensions; Thus, the elderly people are financially dependent on state aid. The elderly have limited social relationships; They rarely interact with neighbors, much less with relatives, and even less with friends. The elderly rarely go to the city or village center either. Limited social networking and activities affect the mental health of the elderly. Such a situation is especially noteworthy in a pandemic. There is a positive correlation between limited access to technologies and lack of financial resources that plays a vital role in social relationships among the elderly; Those elderly who cannot afford access to computer/internet and telephone reported higher isolation levels. Keywords: social isolation, Covid-19, pensioners living alone, under poverty line

scholarly journals Economic Growth, Income Inequality and Poverty Trends in Pasture Area’s Householder in SujanagarUpazila, Pabna, Bangladesh: Implications for Development strategy

2021 ◽  
Vol 4 (3) ◽  
Author(s):  
Kazi Md. Barkat Ali ◽  
◽  
A. B. M Anamul Haque ◽  
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Development Strategy ◽  
Simple Random Sampling ◽  
Poverty Line ◽  
Published Data ◽  
Development Indicators ◽  
Household Level ◽  
Secondary Sources ◽  
Poverty Measures

The study is based on primary household level data obtained from a survey on income expenditure and poverty measures for 2020-21. The perceptual data were collected through field survey which was based on semi structural questionnaire. Total 162 selected samples were considered and simple random sampling techniques have been adopted during data collection. These factual data were collected from various secondary sources like books, journals, magazines, nationally and internationally published data etc. Human development indicators for 1996 have been compared with the study area (pasture area in SujanagarUpazila, Pabna district, Bangladesh). The empirical result shows the analysis of poverty, income inequality, economic growth & development scenario of pasture area’s in Sujanagarupazila, Pabna district, Bangladesh. The research found that 55% respondents live under the poverty line. The study also examines that these householders play an important contribution to the national GDP but their living level is below than standard one. If these areas’ householders’ development access were more available, they would return a great introduction to the society. This paper advises using anti-poverty policy, the concept of poverty minimizing inequality that the society should be tolerant ofattaining the goal of minimizing poverty. It is useful to differentiate between structural and transient causes of poverty. The provision of public goods plays an imperative role in fighting poverty. The government’s proper planning and initiatives, NGOs and Community based organization’s collaboration help build the study area as a socio-economic and environmentally friendly area in Bangladesh.

scholarly journals Hubungan pola asuh dengan kejadian stunting balita dari keluarga miskin di Kota Palembang

2020 ◽  
Vol 8 (1) ◽  
pp. 31
Author(s):  
Febriani Dwi Bella ◽  
Nur Alam Fajar ◽  
Misnaniarti Misnaniarti
Keyword(s):  
Health Services ◽  
Feeding Habits ◽  
Measurement Tool ◽  
P Value ◽  
Height Measurement ◽  
Normal Height ◽  
Cross Sectional ◽  
Under Five ◽  
Poor Families ◽  
The City

Background: Nutritional problems do not always occur in poor families, in fact many of under five years in poor families in good nutritional status which have normal height (not stunting) based on the parenting in the family. The positive parenting in poor families are feeding habit, parenting habit, hygiene habit and health services habit. Objectives: This research aim to observe the parenting of feeding habits, parenting habits, hygiene habits and health services habits on the incidence of toddler’s stunting on poor families in the city of Palembang.Methods: This research was an observational study which using a quantitative approach with a Cross Sectional Study design. It took 100 mothers who have children aged 24-59 months from poor families in the city of Palembang were chosen by proportional random sampling.Data taken regarding feeding habits, parenting habits, hygiene habits, and health services habits obtained through questionnaires, and the incidence of child stunting obtained from measurements of children's height using a toddler's height measurement tool. Data analysis to observe the relationship between variables using the Chi-Square test.Results: The results showed the proportion of toddler stunting in poor families in the city of Palembang was 29%. There was a significant correlation between feeding habits (p-value = 0.000); parenting habits (p-value = 0.001; hygiene habits (p-value = 0.021) and health services habits (p-value = 0.000) on the incidence of toddler’s stunting.Conclusion: Normal height (not stunting) toddlers have positive deviance of feeding habits, parenting habits, hygiene habits and health services habits better than stunting under five years with same economic backgrounds family

Performance Analysis of Microfinance Institutions in Aizawl City, Mizoram, India

2021 ◽  
pp. 120-126
Author(s):  
Lalzuiliana Lalzuiliana
Keyword(s):  
Poverty Line ◽  
Vital Role ◽  
Standard Of Living ◽  
Baseline Survey ◽  
Microfinance Institutions ◽  
Economic Activities ◽  
Financial Products ◽  
Poor Households ◽  
Start Up ◽  
Poor Families

In this research paper an attempt is made to analyze the performance of microfinance Institutions by providing micro credits to living in abject poverty. Altogether 56,584 families in Mizoram are still living below poverty line which is 19.63 percent of total households of over 2.8 lakh, according to the BPL baseline survey 2016. The abject poor families have no access to formal financial products like saving, remittance, insurance. The utter poor families are in immense need of credits for which microfinance plays a vital role to make available this credit needs and motivate the poor households to increase their standard of living. This study intends to analyze how microfinance contributes to the development of micro enterprises in the area of Aizawl city. The abject poor families could start their own ventures in productive economic activities availing micro loans from the microfinance institutions. With the support of the microfinance institutions, the very poor families of the region can be start-up profitable economic activities which generate supplementary employment thereby eradicating poverty through increased income.

Estimating Global Poverty; Towards a Unified Approach

2010 ◽  
Author(s):  
Massoud Karshenas
Keyword(s):  
Purchasing Power Parity ◽  
Well Being ◽  
Poverty Line ◽  
Global Poverty ◽  
National Accounts ◽  
Power Parity ◽  
Unified Framework ◽  
Poverty Measures ◽  
Alternative Approach ◽  
Parity Exchange

In this article we discuss the compatibility of different global poverty estimates under a unified framework. We examine the updating of the rules of the international poverty lines under different Purchasing Power Parity exchange rate estimates and discuss the way this process has affected the latest World Bank poverty-line updates. The issue of the lack of comparability of the data of survey means and national accounts is also discussed, and it is argued that positions based on using one set of data as the indicator of average well-being, to the exclusion of the other, are problematic. We put forward an alternative approach, to deal with the inconsistency between the two data sources, which consists of calibrating the survey means, using the national-accounts data as external calibrating information. We show that combining the information in both sets of data in this way produces poverty measures which are more in congruence with other indicators of national poverty.

Towards an Asset-based Indicator of Poverty

2020 ◽  
Vol 14 (2) ◽  
pp. 151-160
Author(s):  
Narendar Pani
Keyword(s):  
Poverty Line ◽  
Consumption Expenditure ◽  
State Support ◽  
Poverty Measures ◽  
Market State ◽  
The Many ◽  
Primary Basis ◽  
Near Unanimity ◽  
The Relationship

In the debate on the measurement of poverty in India, which has sometimes bordered on the acrimonious, there has been near unanimity on the use of consumption expenditure as the primary basis for determining the poverty line. This article points to the many limitations of using consumption as the sole indicator of poverty, including ignoring the role of non-market state support. As an alternative, it offers assets as a more reliable indicator of the condition of poverty. Recognizing that poverty is more than just the lower end of the inequality of income, it builds a measure that is more sensitive to deprivation. This measure allows for a focus on differences between the poor and those who face absolute deprivation. The article goes on to demonstrate that the relationship between this indicator and other measures of non-market state support can be used to evaluate anti-poverty measures.

The Dynamics of Poverty in Chile

2008 ◽  
Vol 40 (2) ◽  
pp. 251-273 ◽  
Author(s):  
CHRISTOPHER NEILSON ◽  
DANTE CONTRERAS ◽  
RYAN COOPER ◽  
JORGE HERMANN
Keyword(s):  
Household Head ◽  
Physical Capital ◽  
Poverty Line ◽  
Poverty Dynamics ◽  
Poverty Status ◽  
Poverty Lines ◽  
Transient Poverty ◽  
Household Heads ◽  
Definition Of ◽  
Transitory Component

AbstractThis paper uses the 1996–2001 National Socioeconomic Survey panel database to analyse poverty dynamics in Chile, drawing a distinction between chronic and transient poverty. We found that while 20 per cent of the population was living below the official poverty line both in 1996 and 2001, only 9 per cent of the population was poor at both dates. We also found that when the poverty line was raised, the amount of households which could be considered chronically poor rose steadily, whereas the transitory component of poverty remained more or less stable. Analysis of the direct reasons for changes in household poverty status leads us to the conclusion that labour dynamics are far more relevant than demographic changes. Household heads who suffered health problems are significantly less likely to leave poverty. Household human and physical capital are also relevant, as well as the sector in which the household head works. Simulating this exercise using different poverty lines reveals that some variables are not robust to changes in the definition of poverty, while others which originally appeared to be insignificant become so for most other possible poverty lines.

scholarly journals Community Driven Development: The Case of Fadama II Cooperatives in Alleviating Poverty in a Developing Country

2021 ◽  
Vol 70 (1-2) ◽  
pp. 46-53
Author(s):  
Remi Adeyemo ◽  
Ayodeji Damilola Kehinde
Keyword(s):  
Regression Model ◽  
Poverty Line ◽  
Sampling Procedure ◽  
Study Data ◽  
Probit Regression ◽  
Governmental Organizations ◽  
Non Governmental Organizations ◽  
Multi Stage ◽  
Poverty Status ◽  
Participation Index

Summary This study investigated the effects of Fadama II cooperatives on poverty status of farming households in Oyo State, Nigeria. Specifically, the study assessed the level of participation in Fadama II cooperatives among the participants; determined the factors influencing the level of participation in Fadama II cooperatives; examined the poverty status of the participants in Fadama II cooperatives; and determined the effects of Fadama II cooperatives on the poverty status of the participants. The study was conducted in Oyo State, south-western Nigeria. A multi-stage sampling procedure was used to select respondents for this study. A total number of 150 farmers were selected for the study. Data were analyzed using descriptive statistics, participation index, multinomial logit regression model, Foster, Greer and Thorbecke (FGT) index, and Probit regression model. The result showed that the respondents participated in the designated activities carried out within their respective Fadama II cooperatives, with the maximum participation in payment of counterpart fund (100%), followed by participatory rural appraisal process (86.7%). Participation index revealed that the majority (46.7%) of the respondents had their level of participation above the grand mean. Interestingly, gender, farming experience and income from Fadama II cooperative positively and significantly influenced both partial and full participation in Fadama II cooperatives. The poverty line is observed to be ₦44300 per month ($115.36 per month). The incidence, depth and severity of poverty are estimated to be 0.28, 0.067 and 0.013, respectively. Probit estimates revealed that Fadama II cooperatives had significant and positive effect on alleviating the poverty status of the participants. Following the findings of the study, government and non-governmental organizations are encouraged to ensure that more farmers participate in Fadama II cooperatives. In addition, the approach of Fadama II cooperatives should be adopted for intervention programmes in developing countries that depend on agriculture not only for feeding their population but also as a business venture.

scholarly journals Impact of policies, strategies and agricultural institutions on food security and poverty status of vegetable farmers along the blue nile banks, Gezira State, Sudan (2017)

2021 ◽  
Vol 12 (8) ◽  
pp. 2217-2280
Author(s):  
Mohamed O. A. Bushara
Keyword(s):  
Food Security ◽  
Gini Coefficient ◽  
Poverty Line ◽  
The State ◽  
Total Income ◽  
Policy Makers ◽  
Blue Nile ◽  
Poverty Status ◽  
Food Security And Nutrition ◽  
The Impact

Having clear picture on food security status and its major determinants helps policy makers and planners to introduce new policies that enhance food security. The study was aimed to evaluate the impact of policies, strategies and institution on food security and poverty status of the vegetables farmers in Gezira State with reference to the Blue Nile farmers. To achieve these objectives stratified random sampling technique was used to select the respondents from five localities lays along Blue Nile, so 150 farming households were interviewed. Food security Policy and strategy were collected by the mean of questionnaire targeting key line institutions. Poverty indices were calculated using expenditure as welfare indicator,Gini coefficient was applied. The results showed that the majority 75% of the respondents were above expenditure poverty line (7196)SDG. Moreover, the results showed that the poverty gap index was equal to five percent. Kamlin, Medani, East Gezira reported the higher expenditure distance from the poverty line (6 percent). The severity of poverty in the state is estimated to be two percent, likewise the severity of poverty in East Gezira was found to have a higher percentage (three percent). According to Gini coefficient the income distribution estimated at 0.46 while that for expenditure distribution is estimated at 0.31, these results showed a higher degree of inequality. The results showed that the poorest 20% of the population earned 0.06% of the total income while the richest 20% earned 45% of the total income. About 50.7% from the respondents use borrowing from others as one of their coping strategies.  About 78%of policy makers said that there was organized team from all institutions dealing with food security and nutrition issue, all policy makers in the state said there was strategy concerning the food security and nutrition issues. The study recommended that the cash transfer needed to lift the poor out of poverty that each poor person needs five percent of the value of the poverty line.

scholarly journals An Improved Means-Testing Formula for Better Targeting

2020 ◽  
Vol 15 (5) ◽  
pp. 112-129
Keyword(s):  
Low Income ◽  
Household Survey ◽  
Poverty Line ◽  
Means Testing ◽  
Income Gap ◽  
Poverty Threshold ◽  
Equivalence Scale ◽  
Poverty Status ◽  
The Cost ◽  
New Formula

In Russia, means testing is used to identify low-income households and measure poverty headcount as well as to establish the eligibility of the applicants to targeted social assistance. The current means-testing formula, however, is restricted to comparing the per capita income with the cost of the so-called minimum consumer basket or the standard subsistence income. The authors propose an improved means-testing formula which is claimed to measure the wealth and consumption needs of a household more accurately and more equitably, as it includes a revised equivalence scale and а filter for the possession of certain valuable assets. Based on a representative household survey, which covers three subfederal jurisdictions and has been specifically designed to test the performance of the new formula, the authors measure the contribution of each of the proposed formula modifications and the combined effect of all modifications upon the overall poverty headcount and the total income gap as well as the effects upon the poverty status of selected categories of households. Even though during the modeling phase the poverty threshold had to be raised by 12–16% against the official poverty line effective in the respective jurisdictions in order to eliminate the influence of the proposed equivalence scale on the poverty headcount, the ultimate effect of the new formula, which combines the new equivalence scale and several property filters, is a 25% reduction of poverty. This reduction is mainly due to sorting out the households that own excessive property or cars from the low-income category.

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