Estimating International Poverty Lines from Comparable National Thresholds

Estimating International Poverty Lines from Comparable National Thresholds

World Bank's international poverty line of $1.90/day, at 2011 purchasing power parity, is based on a collection of national poverty lines, which were originally used to set the international poverty line of $1.25/day at 2005 purchasing power p...

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Bibliographic Details
Main Authors:	Jolliffe, Dean, Prydz, Espen Beer
Format:	Working Paper
Language:	English en_US
Published:	Washington, DC 2016
Subjects:	REGIONAL POVERTY LINES POVERTY THRESHOLD PER CAPITA CONSUMPTION LIVING STANDARDS HEADCOUNT RATIO INCOME DATA RURAL POVERTY LINE DEVELOPMENT RESEARCH POVERTY LINES CONSUMPTION EXPENDITURES HOUSEHOLD SURVEY SOCIAL NORMS CONSUMPTION CAPITA INCOME POVERTY LINE HUMAN ENERGY ECONOMIC GROWTH NATIONAL ACCOUNTS DEVELOPMENT REPORT FOOD POVERTY POVERTY MEASUREMENT MEAN VALUE INCOME POVERTY INCOME POVERTY RATES POVERTY ESTIMATES NATIONAL POVERTY LINE INCOME DISTRIBUTIONS POOR COUNTRIES DEVELOPING WORLD DENSITY FUNCTION MEASUREMENT OF POVERTY DEVELOPING COUNTRIES CONSUMPTION MEASURE HEALTH INSURANCE RURAL POVERTY INCOME DISTRIBUTION ABSOLUTE POVERTY NATIONAL POVERTY POOR PEOPLE RURAL LOG-LOG MODEL HOUSEHOLD_SURVEY NATIONAL POVERTY RATE CONSUMPTION AGGREGATE INTERNATIONAL POVERTY LINES DEVELOPMENT GOALS GLOBAL POVERTY ECONOMICS MEASURES POVERTY MEASURES NATIONAL POVERTY LINES FIXED EFFECTS REGION INSURANCE POVERTY REDUCTION ECONOMIC DEVELOPMENT RICH COUNTRIES PUBLIC POLICY STANDARD DEVIATION REGIONAL POVERTY ABSOLUTE VALUE PER CAPITA INCOME EXTREME POVERTY DEVELOPMENT ECONOMICS POVERTY NATIONAL POVERTY HEADCOUNT LOW-INCOME COUNTRIES POLITICAL CONSTRAINTS EXCHANGE RATES HOUSEHOLD CONSUMPTION TRANSFERS POVERTY UPDATE CONSUMER PRICE INDEX INTERNATIONAL POVERTY LINE POVERTY HEADCOUNT RATES POLICY RESEARCH POVERTY STATUS POVERTY RATE POOR DATA ISSUES POVERTY ASSESSMENT CONSUMPTION EXPENDITURE HOUSEHOLD SURVEYS WELFARE MEASURE MICRO DATA POVERTY ASSESSMENTS POVERTY HEADCOUNT RATE DEVELOPMENT INDICATORS SIGNIFICANT CORRELATION DEVELOPMENT POLICY FOOD ITEMS INEQUALITY GROWTH
Online Access:	http://documents.worldbank.org/curated/en/2016/03/26083870/estimating-international-poverty-lines-comparable-national-thresholds http://hdl.handle.net/10986/24148

Description
Summary:	World Bank's international poverty line of $1.90/day, at 2011 purchasing power parity, is based on a collection of national poverty lines, which were originally used to set the international poverty line of $1.25/day at 2005 purchasing power parity. This paper proposes an approach for estimating a more recent, complete, and comparable collection of national poverty thresholds from reported national poverty rates. The paper presents a set of international poverty lines based on this new database of national poverty lines. In contrast to the lines used to estimate the $1.90 international poverty line, this approach produces national poverty lines that are (1) consistent with national poverty rates, (2) expressed in common units, and (3) provide greater support to the estimated international poverty line. These national poverty lines are used to estimate an extreme international poverty line, and three higher lines that are more relevant for higher-income countries. A key finding provides evidence of the robustness and relevance of the $1.90 international poverty line as a measure of extreme poverty for low-income countries.

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