ipl-logo

Measuring Poverty

1326 Words6 Pages

2.1.2 The Concepts of Measuring Poverty
Poverty is measured by constructing a poverty line (income based) and computing poverty indices by used multidimensional index ( measuring the achievement of a certain dimension of human development). However, the definition of poverty line depends on how one understands the concept of poverty. Hence, it varies across individuals, households, societies, etc due to a number of factors such as difference in taste, preference, price etc. All definitions of poverty line however, belong to the three main categories of poverty definitions; These are Absolute poverty line, Relative poverty line and Subjective poverty lines. In other hand to categorize the people, either poor or not multidimensional measurement …show more content…

First, it says nothing about how far below the poverty line that the income of the average poor person is, i.e. the poverty gap. Hence, the head count ratio and the poverty gap can easily move in opposite directions.

2.1.2.2. The Poverty Gap Index
Poverty gap index is moderately popular measure of poverty. It captures the mean aggregate income or consumption shortfall relative to the poverty line across the whole population. It is obtained by adding up all the shortfalls of the poor (assuming that the non-poor have a shortfall of zero) and dividing the total by the population. In other words, it estimates the total resources needed to bring all the poor to the level of the poverty line (divided by the number of individuals in the population) (Aline Coudouel, Jesko S. Hentschel, and Quentin T. Wodon Aklilu, B , 2007). Mathematically, the poverty gap index can be calculated as follows:

P1 =∑_(i=1)^P▒〖(z-y〗 i ) …show more content…

The MPI assesses poverty at individual level. It uses different factors to determine poverty beyond income-based lists by capturing the severe deprivation that each person faces at the same time with respect to education, health and living standards in Global MPI (UNDP M. p., 2016). Those have in concert ten indicators. Health dimension have two indicators child mortality and Nutrition, Education dimension and also have two indicators: year of schooling and school attendance, and Living standards have six indicators: cooking fuel, Toilet, Water, Electricity, Floor, and Assets. Each Dimension have 1/3 Weight and each indicator within a dimension is equally weighted. To calculate the poverty level of a certain country by using the formula as

Show More
Related

Rethinking American Poverty Summary

316 Words | 2 Pages

I. Rank R., Mark.2011. “Rethinking American Poverty.” Context 10(2):16-21. II. Misconceptions the public has about poverty mostly who is responsible for preventing it.

Read More

Poverty In America Is Mainstream By Mark R. Rank Summary

925 Words | 4 Pages

Many Americans throughout their life might experience at least a one year in poverty. To be considered living in poverty your annual income must be below the official poverty line. In the article “Poverty in America is Mainstream” by Mark R. Rank, he states that there are myths and stereotypes that surround poverty in America, including that poverty only affects a small number of Americans. Rank uses justifying statistics, as well as appeals to the audience’s emotions, and his credibility to get us to truly understand that poverty can/does affect the everyday American.

Read More

Poverty In Australia In 1999: Table Analysis

173 Words | 1 Pages

The table gives information about the proportion of different categories of families living in poverty in Australia in 1999. As we can see from the chart, proportion of people living in poverty is 1837000 in all households in Australia during 1999. If we see separately to the all family types, we can see approximately 20% of single people who has not a partner and children and sole partner family live in the poverty. Additionally majority of poverty is in the family which has both of parents and has children. 12% of these families live in the poverty that is 933000.

Read More

Changing The Face Of Poverty Analysis

1416 Words | 6 Pages

Poverty is classified as the state or condition of having little or no money, goods, or means of support. According to the United States Census Bureau, the official poverty rate in 2014 was 14.8 percent, there were 46.7 million people in poverty. Poverty has always been present around the world whether the country be rich or poor. There are numerous causes of poverty ranging anywhere from the lack of an individual to exploitation by people and businesses with power and influence. Over 21,000 children around the world die every day because people in poverty have a hard time affording medical care and cannot seek medical attention for their sick child.

Read More

The Negative Consequences Of Hunger In Homer's The Odyssey

426 Words | 2 Pages

Everyone has been hungry at some point in time. Hunger can make people do anything to satisfy that hunger even if there are negative consequences. Odysseus’s men in The Odyssey had run out of food. Odysseus’s men should eat the cattle that belong to Helios, the sun god, because of starving, drowning, and sacrificing. The men had depleted their food supply.

Read More

The Role Of Economic Inequality In Canada

171 Words | 1 Pages

Poverty and wealth is difficult to measure in terms of geographic dimension. The pictures below demonstrate

Read More

The Myth Of Poverty In Rural America

1373 Words | 6 Pages

How is poverty defined? It is difficult to answer this question because poverty in America is exaggerated compared to Third World countries. People in America tend to say they are in poverty, but in reality, they are not. If a person lives in true poverty, he/she is suffering, meaning no food, no roofs or just homeless. Anyone can think he/

Read More

Census Bureau Poverty

172 Words | 1 Pages

The official poverty rate is 13.5 percent based on the U.S Census Bureau’s 2015 estimates, that same year an estimated 43.1 million Americans lived in poverty. (U.S Census Bureau) There are millions of Americans that go unnoticed to society and government due to their low financial stability and poor living situations. They constantly deal with low provisions, low employment, bad health, and high rates of poverty. Majority of this happens to the minorities in this country, and it dates back since the 1900’s. The minorities being the last to be concerned about, but since then low income communities have been generified, which has improved the living conditions bring in more people, jobs, and better housing, but it still takes years for the

Read More

Essay About Poverty In America

602 Words | 3 Pages

I agree that the way poverty is measured now is not the way it should be. Income levels are different all across the country and needed things all across the country have different rates and expenses. Like it says in the article, a family could get by on $40,000 a year in one area, and need $90,000 to make it in another part of the country. I believe that rent and other bills and utilities need to be taken into consideration because sometimes people are over the poverty limit but only have enough money to make sure all the bills are paid. And then they have absolutely no money for food or other “extra” expenses such as gas.

Read More

Pervasive Stereotypes Of Latin America

861 Words | 4 Pages

Human development is about the real freedom ordinary people have to decide who to be, what to do, and how to live (About Human Development, n.d..).” When considering human development and inequality one must acknowledge that it is not solely reflected in measures of income or GDP. Two useful metrics in determining global inequality and human development are the United Nations Development Programme’s Human Development Index (HDI) and Gender Inequality index (GII). The Human Development Index is a numerical measure of life expectancy, educational attainment, and personal income, while the Gender Inequality Index GII) “reflects women’s disadvantage in three dimensions—reproductive health, empowerment and the labour market—for as many countries as data of reasonable quality allow. The index shows the loss in human development due to inequality between female and male achievements in these dimensions.

Read More

Isb201 Human Poverty

595 Words | 3 Pages

ISB201 Human Population/ Poverty/ Environmental Economics Homework Kristina Familara 1. For a very long time, the idea of poverty and environmental degradation has been taken as separate global issues although they have many factors in common (Shah, 2005). Being in poverty and lacking insufficient funds does not create a space to truly care about the environment. Environmental degradation can in reverse, allow for people to fall into poverty (Bharadwaj, 2017). According to the World Bank, “The poor do not willfully degrade the environment but poor families often lack the resources to avoid degrading their environment” (“2. Poverty and Land Degradation”, n.d.).

Read More

Measuring The Standard Of Living In Venezuela

737 Words | 3 Pages

There are a variety of ways to measure the standard of living for people living in a country. The most common ways to do so is by measuring the amount of GDP per capita but using only that statistic would not give an accurate measure of the current state, so there are are other statistics that can be taken into account when measuring standard of living and overall state of the economy. Another way would be to use the Human Development Index(HDI), the unemployment and inflation rates and alternative statistics such as life expectancy at birth or infant mortality rates. Each of these ways of measuring standard of living hold their faults, one prominent example would be one using GDP per capita. GDP per capita is just the total GDP of a country divided by its population, this does not actually tell you what people are living like and it assumes that everyone in the country is earning the same exact amount of money.

Read More

The Pros And Cons Of Relative Poverty

959 Words | 4 Pages

Relative poverty considers the status of each individual or household in relation to the status of other individuals, households in the community, or other social groupings, taking into account the context in which it occurs (i.e. their position within the distribution of that population). Relative poverty typically changes spatially and temporally, and measures of relative poverty are therefore not necessarily comparable between locations (due to the differing social stratification between communities) or over time. The relative approach examines poverty in the context of inequality within a society, though they should not be conflated. According to FAO (2006) it is the condition in which people lack the minimum amount of income requirements in order to maintain the average standard of living in the society in which they live. Moreover, it is defined relative to the members of a society and, therefore, differs across countries.

Read More

Thesis Statement On Poverty

791 Words | 4 Pages

I. Introduction A. Thesis statement: A child’s early development is greatly impacted by living in poverty which leads to poor cognitive outcomes, school achievement, and severe emotional, and behavioral problems. II. Body Paragraph 1. Claim: According to (Short, 2016) poverty consists of two parts: a measure of need and resources available to meet those needs.

Read More

Essay On Poverty And Crime

832 Words | 4 Pages

Poverty is defined as the state of being unable to fulfill basic needs of human beings. Poverty is the lack of resources leading to physical deprivation. Poor people are unable to fulfill basic survival needs such as food, clothing, shelter. These are the needs of lowest order and assume top priority. Poor people are unknown of their lack of voice, power, and rights, which leads them to exploitation.

Read More

More about Measuring Poverty

Related Topics

Open Document