More Relatively-Poor People in a Less Absolutely-Poor World

Relative deprivation, shame and social exclusion can matter to the welfare of people everywhere. The authors argue that such social effects on welfare call for a reconsideration of how we assess global poverty, but they do not support standard meas...

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Main Authors: Chen, Shaohua, Ravallion, Martin
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2012/07/16458176/more-relatively-poor-people-less-absolutely-poor-world
http://hdl.handle.net/10986/11876
id okr-10986-11876
recordtype oai_dc
spelling okr-10986-118762021-04-23T14:02:58Z More Relatively-Poor People in a Less Absolutely-Poor World Chen, Shaohua Ravallion, Martin ABSOLUTE POVERTY ABSOLUTE POVERTY LINE ABSOLUTE TERMS ABSOLUTE VALUE AGGREGATE POVERTY AVERAGE INEQUALITY CHANGES IN POVERTY CHILD MORTALITY CONSUMER PRICE INDEX CONSUMPTION BEHAVIOR CONSUMPTION DATA CONSUMPTION EXPENDITURES COUNTRY DATA COUNTRY INEQUALITY COUNTRY LEVEL CUMULATIVE DISTRIBUTION CUMULATIVE DISTRIBUTION FUNCTION DATA SETS DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DEVELOPING WORLD DEVELOPMENT ECONOMICS DEVELOPMENT POLICY DEVELOPMENT REPORT DEVELOPMENT RESEARCH ECONOMIC CONTRACTION ECONOMIC GROWTH ECONOMICS EMPIRICAL EVIDENCE EMPIRICAL RESULTS ESTIMATED COEFFICIENTS FOOD PRICE FOOD PRICES FOOD SHARE FUNCTIONAL FORM GINI INDEX GLOBAL MARKETS GLOBAL POVERTY GROWTH RATE GROWTH RATES HIGH INEQUALITY HIGHER INEQUALITY HOUSEHOLD CONSUMPTION HOUSEHOLD CONSUMPTION PER CAPITA HOUSEHOLD INCOME HOUSEHOLD SIZE HOUSEHOLD SURVEY HOUSEHOLD SURVEYS IMPACT ON POVERTY INCIDENCE OF POVERTY INCOME INCOME DISTRIBUTION INCOME POVERTY INEQUALITY INEQUALITY MEASURES INFLATION RATE INTERNATIONAL POVERTY LINE LIVING STANDARDS LOW INEQUALITY MEASUREMENT OF POVERTY MEASURING POVERTY MICRO DATA NATIONAL ACCOUNTS NATIONAL POVERTY NATIONAL POVERTY LINES PER CAPITA CONSUMPTION PER CAPITA EXPENDITURE POLICY ANALYSIS POLICY RESEARCH POOR POOR COUNTRIES POOR PEOPLE POPULATION SHARE POST-REFORM POVERTY ASSESSMENTS POVERTY COMPARISONS POVERTY GAP POVERTY GAP INDEX POVERTY INCIDENCE POVERTY LEVEL POVERTY LINE POVERTY MEASURE POVERTY MEASUREMENT POVERTY MEASURES POVERTY RANKINGS POVERTY RATE POVERTY RATES POVERTY REDUCTION POVERTY REDUCTION STRATEGY POVERTY REDUCTION STRATEGY PAPERS REAL INCOMES REGIONAL AUTHORITIES REGIONAL DIFFERENCES REGIONAL POVERTY REGIONAL PROFILE RICH COUNTRIES RURAL RURAL AREAS RURAL POVERTY RURAL POVERTY LINES SIGNIFICANT CORRELATION SOCIAL NORMS URBAN AREAS Relative deprivation, shame and social exclusion can matter to the welfare of people everywhere. The authors argue that such social effects on welfare call for a reconsideration of how we assess global poverty, but they do not support standard measures of relative poverty. The paper argues instead for using a weakly-relative measure as the upper-bound complement to the lower-bound provided by a standard absolute measure. New estimates of global poverty are presented, drawing on 850 household surveys spanning 125 countries over 1981-2008. The absolute line is $1.25 a day at 2005 prices, while the relative line rises with the mean, at a gradient of 1:2 above $1.25 a day. The authors show that these parameter choices are consistent with cross-country data on national poverty lines. The results indicate that the incidence of both absolute and weakly-relative poverty in the developing world has been falling since the 1990s, but more slowly for the relative measure. While the number of absolutely poor has fallen, the number of relatively poor has changed little since the 1990s, and is higher in 2008 than 1981. 2012-12-04T16:37:22Z 2012-12-04T16:37:22Z 2012-07 http://documents.worldbank.org/curated/en/2012/07/16458176/more-relatively-poor-people-less-absolutely-poor-world http://hdl.handle.net/10986/11876 English Policy Research Working Paper; No. WPS 6114 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ABSOLUTE POVERTY
ABSOLUTE POVERTY LINE
ABSOLUTE TERMS
ABSOLUTE VALUE
AGGREGATE POVERTY
AVERAGE INEQUALITY
CHANGES IN POVERTY
CHILD MORTALITY
CONSUMER PRICE INDEX
CONSUMPTION BEHAVIOR
CONSUMPTION DATA
CONSUMPTION EXPENDITURES
COUNTRY DATA
COUNTRY INEQUALITY
COUNTRY LEVEL
CUMULATIVE DISTRIBUTION
CUMULATIVE DISTRIBUTION FUNCTION
DATA SETS
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DEVELOPING WORLD
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICY
DEVELOPMENT REPORT
DEVELOPMENT RESEARCH
ECONOMIC CONTRACTION
ECONOMIC GROWTH
ECONOMICS
EMPIRICAL EVIDENCE
EMPIRICAL RESULTS
ESTIMATED COEFFICIENTS
FOOD PRICE
FOOD PRICES
FOOD SHARE
FUNCTIONAL FORM
GINI INDEX
GLOBAL MARKETS
GLOBAL POVERTY
GROWTH RATE
GROWTH RATES
HIGH INEQUALITY
HIGHER INEQUALITY
HOUSEHOLD CONSUMPTION
HOUSEHOLD CONSUMPTION PER CAPITA
HOUSEHOLD INCOME
HOUSEHOLD SIZE
HOUSEHOLD SURVEY
HOUSEHOLD SURVEYS
IMPACT ON POVERTY
INCIDENCE OF POVERTY
INCOME
INCOME DISTRIBUTION
INCOME POVERTY
INEQUALITY
INEQUALITY MEASURES
INFLATION RATE
INTERNATIONAL POVERTY LINE
LIVING STANDARDS
LOW INEQUALITY
MEASUREMENT OF POVERTY
MEASURING POVERTY
MICRO DATA
NATIONAL ACCOUNTS
NATIONAL POVERTY
NATIONAL POVERTY LINES
PER CAPITA CONSUMPTION
PER CAPITA EXPENDITURE
POLICY ANALYSIS
POLICY RESEARCH
POOR
POOR COUNTRIES
POOR PEOPLE
POPULATION SHARE
POST-REFORM
POVERTY ASSESSMENTS
POVERTY COMPARISONS
POVERTY GAP
POVERTY GAP INDEX
POVERTY INCIDENCE
POVERTY LEVEL
POVERTY LINE
POVERTY MEASURE
POVERTY MEASUREMENT
POVERTY MEASURES
POVERTY RANKINGS
POVERTY RATE
POVERTY RATES
POVERTY REDUCTION
POVERTY REDUCTION STRATEGY
POVERTY REDUCTION STRATEGY PAPERS
REAL INCOMES
REGIONAL AUTHORITIES
REGIONAL DIFFERENCES
REGIONAL POVERTY
REGIONAL PROFILE
RICH COUNTRIES
RURAL
RURAL AREAS
RURAL POVERTY
RURAL POVERTY LINES
SIGNIFICANT CORRELATION
SOCIAL NORMS
URBAN AREAS
spellingShingle ABSOLUTE POVERTY
ABSOLUTE POVERTY LINE
ABSOLUTE TERMS
ABSOLUTE VALUE
AGGREGATE POVERTY
AVERAGE INEQUALITY
CHANGES IN POVERTY
CHILD MORTALITY
CONSUMER PRICE INDEX
CONSUMPTION BEHAVIOR
CONSUMPTION DATA
CONSUMPTION EXPENDITURES
COUNTRY DATA
COUNTRY INEQUALITY
COUNTRY LEVEL
CUMULATIVE DISTRIBUTION
CUMULATIVE DISTRIBUTION FUNCTION
DATA SETS
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPING COUNTRY
DEVELOPING WORLD
DEVELOPMENT ECONOMICS
DEVELOPMENT POLICY
DEVELOPMENT REPORT
DEVELOPMENT RESEARCH
ECONOMIC CONTRACTION
ECONOMIC GROWTH
ECONOMICS
EMPIRICAL EVIDENCE
EMPIRICAL RESULTS
ESTIMATED COEFFICIENTS
FOOD PRICE
FOOD PRICES
FOOD SHARE
FUNCTIONAL FORM
GINI INDEX
GLOBAL MARKETS
GLOBAL POVERTY
GROWTH RATE
GROWTH RATES
HIGH INEQUALITY
HIGHER INEQUALITY
HOUSEHOLD CONSUMPTION
HOUSEHOLD CONSUMPTION PER CAPITA
HOUSEHOLD INCOME
HOUSEHOLD SIZE
HOUSEHOLD SURVEY
HOUSEHOLD SURVEYS
IMPACT ON POVERTY
INCIDENCE OF POVERTY
INCOME
INCOME DISTRIBUTION
INCOME POVERTY
INEQUALITY
INEQUALITY MEASURES
INFLATION RATE
INTERNATIONAL POVERTY LINE
LIVING STANDARDS
LOW INEQUALITY
MEASUREMENT OF POVERTY
MEASURING POVERTY
MICRO DATA
NATIONAL ACCOUNTS
NATIONAL POVERTY
NATIONAL POVERTY LINES
PER CAPITA CONSUMPTION
PER CAPITA EXPENDITURE
POLICY ANALYSIS
POLICY RESEARCH
POOR
POOR COUNTRIES
POOR PEOPLE
POPULATION SHARE
POST-REFORM
POVERTY ASSESSMENTS
POVERTY COMPARISONS
POVERTY GAP
POVERTY GAP INDEX
POVERTY INCIDENCE
POVERTY LEVEL
POVERTY LINE
POVERTY MEASURE
POVERTY MEASUREMENT
POVERTY MEASURES
POVERTY RANKINGS
POVERTY RATE
POVERTY RATES
POVERTY REDUCTION
POVERTY REDUCTION STRATEGY
POVERTY REDUCTION STRATEGY PAPERS
REAL INCOMES
REGIONAL AUTHORITIES
REGIONAL DIFFERENCES
REGIONAL POVERTY
REGIONAL PROFILE
RICH COUNTRIES
RURAL
RURAL AREAS
RURAL POVERTY
RURAL POVERTY LINES
SIGNIFICANT CORRELATION
SOCIAL NORMS
URBAN AREAS
Chen, Shaohua
Ravallion, Martin
More Relatively-Poor People in a Less Absolutely-Poor World
relation Policy Research Working Paper; No. WPS 6114
description Relative deprivation, shame and social exclusion can matter to the welfare of people everywhere. The authors argue that such social effects on welfare call for a reconsideration of how we assess global poverty, but they do not support standard measures of relative poverty. The paper argues instead for using a weakly-relative measure as the upper-bound complement to the lower-bound provided by a standard absolute measure. New estimates of global poverty are presented, drawing on 850 household surveys spanning 125 countries over 1981-2008. The absolute line is $1.25 a day at 2005 prices, while the relative line rises with the mean, at a gradient of 1:2 above $1.25 a day. The authors show that these parameter choices are consistent with cross-country data on national poverty lines. The results indicate that the incidence of both absolute and weakly-relative poverty in the developing world has been falling since the 1990s, but more slowly for the relative measure. While the number of absolutely poor has fallen, the number of relatively poor has changed little since the 1990s, and is higher in 2008 than 1981.
format Publications & Research :: Policy Research Working Paper
author Chen, Shaohua
Ravallion, Martin
author_facet Chen, Shaohua
Ravallion, Martin
author_sort Chen, Shaohua
title More Relatively-Poor People in a Less Absolutely-Poor World
title_short More Relatively-Poor People in a Less Absolutely-Poor World
title_full More Relatively-Poor People in a Less Absolutely-Poor World
title_fullStr More Relatively-Poor People in a Less Absolutely-Poor World
title_full_unstemmed More Relatively-Poor People in a Less Absolutely-Poor World
title_sort more relatively-poor people in a less absolutely-poor world
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2012/07/16458176/more-relatively-poor-people-less-absolutely-poor-world
http://hdl.handle.net/10986/11876
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