International Comparisons of Poverty in South Asia

This paper explores the methodological differences underlying the construction of the national consumption aggregates that are used to estimate international poverty rates for all countries in the South Asia region, including Afghanistan, Banglades...

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Main Authors: Islam, Tonmoy, Newhouse, David, Yanez-Pagans, Monica
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2018
Subjects:
Online Access:http://documents.worldbank.org/curated/en/805971545243107437/International-Comparisons-of-Poverty-in-South-Asia
http://hdl.handle.net/10986/31085
id okr-10986-31085
recordtype oai_dc
spelling okr-10986-310852021-06-08T14:42:45Z International Comparisons of Poverty in South Asia Islam, Tonmoy Newhouse, David Yanez-Pagans, Monica POVERTY MEASUREMENT CONSUMPTION IMPUTED RENT AGGREGATE VARIABLE CONSUMPTION AGGREGATE EXTREME POVERTY POVERTY LINE POVERTY RATE This paper explores the methodological differences underlying the construction of the national consumption aggregates that are used to estimate international poverty rates for all countries in the South Asia region, including Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. The analysis draws on a regional dataset of standardized consumption aggregates to assess the sensitivity of international poverty rates to the items included in national consumption aggregates. A key feature of the standardized aggregate is that it includes the reported value of housing rent for urban Indian homeowners. Using the standardized consumption aggregates reduces the international poverty rate in South Asia by 1.3 percentage points, or about 18.5 million people. Comparing standardized and non-standardized monetary welfare indicators to other nonmonetary indicators suggests that the latter are more consistent with the standardized consumption aggregates. Overall, the results strongly suggest that harmonizing the construction of welfare measures, particularly the treatment of imputed rent, can meaningfully improve the accuracy of international poverty comparisons. 2018-12-28T17:13:37Z 2018-12-28T17:13:37Z 2018-12 Working Paper http://documents.worldbank.org/curated/en/805971545243107437/International-Comparisons-of-Poverty-in-South-Asia http://hdl.handle.net/10986/31085 English Policy Research Working Paper;No. 8683 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic POVERTY MEASUREMENT
CONSUMPTION
IMPUTED RENT
AGGREGATE VARIABLE
CONSUMPTION AGGREGATE
EXTREME POVERTY
POVERTY LINE
POVERTY RATE
spellingShingle POVERTY MEASUREMENT
CONSUMPTION
IMPUTED RENT
AGGREGATE VARIABLE
CONSUMPTION AGGREGATE
EXTREME POVERTY
POVERTY LINE
POVERTY RATE
Islam, Tonmoy
Newhouse, David
Yanez-Pagans, Monica
International Comparisons of Poverty in South Asia
geographic_facet South Asia
relation Policy Research Working Paper;No. 8683
description This paper explores the methodological differences underlying the construction of the national consumption aggregates that are used to estimate international poverty rates for all countries in the South Asia region, including Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. The analysis draws on a regional dataset of standardized consumption aggregates to assess the sensitivity of international poverty rates to the items included in national consumption aggregates. A key feature of the standardized aggregate is that it includes the reported value of housing rent for urban Indian homeowners. Using the standardized consumption aggregates reduces the international poverty rate in South Asia by 1.3 percentage points, or about 18.5 million people. Comparing standardized and non-standardized monetary welfare indicators to other nonmonetary indicators suggests that the latter are more consistent with the standardized consumption aggregates. Overall, the results strongly suggest that harmonizing the construction of welfare measures, particularly the treatment of imputed rent, can meaningfully improve the accuracy of international poverty comparisons.
format Working Paper
author Islam, Tonmoy
Newhouse, David
Yanez-Pagans, Monica
author_facet Islam, Tonmoy
Newhouse, David
Yanez-Pagans, Monica
author_sort Islam, Tonmoy
title International Comparisons of Poverty in South Asia
title_short International Comparisons of Poverty in South Asia
title_full International Comparisons of Poverty in South Asia
title_fullStr International Comparisons of Poverty in South Asia
title_full_unstemmed International Comparisons of Poverty in South Asia
title_sort international comparisons of poverty in south asia
publisher World Bank, Washington, DC
publishDate 2018
url http://documents.worldbank.org/curated/en/805971545243107437/International-Comparisons-of-Poverty-in-South-Asia
http://hdl.handle.net/10986/31085
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