Weakly Relative Poverty

Prevailing measures of relative poverty put an implausibly high weight on relative deprivation, such that measured poverty does not fall when all incomes grow at the same rate. This stems from the (implicit) assumption in past measures that very po...

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Main Authors: Chen, Shaohua, Ravallion, Martin
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090622100104
http://hdl.handle.net/10986/4168
id okr-10986-4168
recordtype oai_dc
spelling okr-10986-41682021-04-23T14:02:15Z Weakly Relative Poverty Chen, Shaohua Ravallion, Martin ABSOLUTE POVERTY AGGREGATE INCOME AGGREGATE POVERTY AVERAGE INCOME BULLETIN CALORIES PER DAY CONSUMPTION PER CAPITA COUNTRY LEVEL CULTURAL CHANGE DATA QUALITY DECOMPOSABLE POVERTY DECOMPOSABLE POVERTY MEASURES DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING WORLD DEVELOPMENT ECONOMICS DEVELOPMENT RESEARCH DIET DISCRIMINATION DISTRIBUTION DATA ECONOMIC ACTIVITIES ECONOMIC CHANGE ECONOMIC CONDITIONS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC INEQUALITY ECONOMIC LITERATURE ECONOMIC PERFORMANCE ECONOMICS EMPIRICAL EVIDENCE FIGHT AGAINST POVERTY FOOD BASKET FOOD CONSUMPTION FOOD STAPLES GLOBAL LEVEL GLOBAL MARKETS GLOBAL POVERTY GROWTH PROCESS GROWTH RATE HOUSEHOLD CONSUMPTION HOUSEHOLD SIZE HOUSEHOLD SURVEYS HUMAN DEVELOPMENT HUMAN DEVELOPMENT REPORT INCIDENCE OF POVERTY INCOME INCOME DISTRIBUTION INCOME ELASTICITY INCOME INEQUALITY INCOME LEVELS INCOME POVERTY INCOMES INCREASE INEQUALITY INTERNATIONAL AGENCIES INTERNATIONAL POLICY INTERNATIONAL POVERTY LINE LEVELS OF CONSUMPTION LIVING STANDARDS LOW-INCOME COUNTRIES LOW-INCOME COUNTRY MEAN INCOME MEAN INCOMES MEASUREMENT OF POVERTY MEASURING POVERTY NATIONAL ACCOUNTS NATIONAL GOVERNMENTS NATIONAL POVERTY NATIONAL POVERTY LINE NATIONAL POVERTY LINES NATIONAL RESEARCH COUNCIL NEGATIVE EXTERNALITIES NEWSLETTER NUMBER OF PEOPLE NUTRITIONAL NEEDS PER CAPITA CONSUMPTION PHYSICAL NEEDS POLICY ANALYSIS POLICY RESEARCH POLICY RESEARCH WORKING PAPER POOR POOR COUNTRIES POOR PEOPLE POPULATION AND DEVELOPMENT POPULATION GROWTH POVERTY ASSESSMENTS POVERTY COMPARISONS POVERTY DYNAMICS POVERTY GAP POVERTY GAP INDEX POVERTY INCIDENCE POVERTY INCREASES POVERTY LINE POVERTY MEASURE POVERTY MEASUREMENT POVERTY MEASURES POVERTY RATE POVERTY REDUCTION POVERTY REDUCTION STRATEGY POVERTY REDUCTION STRATEGY PAPERS PROGRESS PURCHASING POWER PURCHASING POWER PARITY RATES OF GROWTH RELATIVE INCOME RELATIVE INCOMES RELATIVE INEQUALITY RELATIVE POSITION RESPECT RURAL RURAL POVERTY RURAL POVERTY LINES SOCIAL AFFAIRS SOCIAL JUSTICE SOCIAL POLICY SOCIAL SCIENCE SOCIAL SECURITY STANDARD DEVIATION SUBSISTENCE URBAN BIAS URBAN POVERTY URBANIZATION Prevailing measures of relative poverty put an implausibly high weight on relative deprivation, such that measured poverty does not fall when all incomes grow at the same rate. This stems from the (implicit) assumption in past measures that very poor people incur a negligible cost of social inclusion. That assumption is inconsistent with evidence on the social roles of certain private expenditures in poor settings and with data on national poverty lines. The authors propose a new schedule of "weakly relative" lines that relax this assumption and estimate the implied poverty measures for 116 developing countries. The authors find that there is more relative poverty than past estimates have suggested. In 2005, one half of the population of the developing world lived in relative poverty, half of whom were absolutely poor. The total number of relatively poor rose over 1981-2005, despite falling numbers of absolutely poor. With sustained economic growth, the incidence of relative poverty becomes less responsive to further growth. Slower progress against relative poverty can thus be seen as the "other side of the coin" to success against absolute poverty. 2012-03-19T19:11:10Z 2012-03-19T19:11:10Z 2009-02-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090622100104 http://hdl.handle.net/10986/4168 English Policy Research working paper ; no. WPS 4844 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region
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
AGGREGATE INCOME
AGGREGATE POVERTY
AVERAGE INCOME
BULLETIN
CALORIES PER DAY
CONSUMPTION PER CAPITA
COUNTRY LEVEL
CULTURAL CHANGE
DATA QUALITY
DECOMPOSABLE POVERTY
DECOMPOSABLE POVERTY MEASURES
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPING WORLD
DEVELOPMENT ECONOMICS
DEVELOPMENT RESEARCH
DIET
DISCRIMINATION
DISTRIBUTION DATA
ECONOMIC ACTIVITIES
ECONOMIC CHANGE
ECONOMIC CONDITIONS
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC INEQUALITY
ECONOMIC LITERATURE
ECONOMIC PERFORMANCE
ECONOMICS
EMPIRICAL EVIDENCE
FIGHT AGAINST POVERTY
FOOD BASKET
FOOD CONSUMPTION
FOOD STAPLES
GLOBAL LEVEL
GLOBAL MARKETS
GLOBAL POVERTY
GROWTH PROCESS
GROWTH RATE
HOUSEHOLD CONSUMPTION
HOUSEHOLD SIZE
HOUSEHOLD SURVEYS
HUMAN DEVELOPMENT
HUMAN DEVELOPMENT REPORT
INCIDENCE OF POVERTY
INCOME
INCOME DISTRIBUTION
INCOME ELASTICITY
INCOME INEQUALITY
INCOME LEVELS
INCOME POVERTY
INCOMES INCREASE
INEQUALITY
INTERNATIONAL AGENCIES
INTERNATIONAL POLICY
INTERNATIONAL POVERTY LINE
LEVELS OF CONSUMPTION
LIVING STANDARDS
LOW-INCOME COUNTRIES
LOW-INCOME COUNTRY
MEAN INCOME
MEAN INCOMES
MEASUREMENT OF POVERTY
MEASURING POVERTY
NATIONAL ACCOUNTS
NATIONAL GOVERNMENTS
NATIONAL POVERTY
NATIONAL POVERTY LINE
NATIONAL POVERTY LINES
NATIONAL RESEARCH COUNCIL
NEGATIVE EXTERNALITIES
NEWSLETTER
NUMBER OF PEOPLE
NUTRITIONAL NEEDS
PER CAPITA CONSUMPTION
PHYSICAL NEEDS
POLICY ANALYSIS
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POOR
POOR COUNTRIES
POOR PEOPLE
POPULATION AND DEVELOPMENT
POPULATION GROWTH
POVERTY ASSESSMENTS
POVERTY COMPARISONS
POVERTY DYNAMICS
POVERTY GAP
POVERTY GAP INDEX
POVERTY INCIDENCE
POVERTY INCREASES
POVERTY LINE
POVERTY MEASURE
POVERTY MEASUREMENT
POVERTY MEASURES
POVERTY RATE
POVERTY REDUCTION
POVERTY REDUCTION STRATEGY
POVERTY REDUCTION STRATEGY PAPERS
PROGRESS
PURCHASING POWER
PURCHASING POWER PARITY
RATES OF GROWTH
RELATIVE INCOME
RELATIVE INCOMES
RELATIVE INEQUALITY
RELATIVE POSITION
RESPECT
RURAL
RURAL POVERTY
RURAL POVERTY LINES
SOCIAL AFFAIRS
SOCIAL JUSTICE
SOCIAL POLICY
SOCIAL SCIENCE
SOCIAL SECURITY
STANDARD DEVIATION
SUBSISTENCE
URBAN BIAS
URBAN POVERTY
URBANIZATION
spellingShingle ABSOLUTE POVERTY
AGGREGATE INCOME
AGGREGATE POVERTY
AVERAGE INCOME
BULLETIN
CALORIES PER DAY
CONSUMPTION PER CAPITA
COUNTRY LEVEL
CULTURAL CHANGE
DATA QUALITY
DECOMPOSABLE POVERTY
DECOMPOSABLE POVERTY MEASURES
DEVELOPED COUNTRIES
DEVELOPING COUNTRIES
DEVELOPING WORLD
DEVELOPMENT ECONOMICS
DEVELOPMENT RESEARCH
DIET
DISCRIMINATION
DISTRIBUTION DATA
ECONOMIC ACTIVITIES
ECONOMIC CHANGE
ECONOMIC CONDITIONS
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC INEQUALITY
ECONOMIC LITERATURE
ECONOMIC PERFORMANCE
ECONOMICS
EMPIRICAL EVIDENCE
FIGHT AGAINST POVERTY
FOOD BASKET
FOOD CONSUMPTION
FOOD STAPLES
GLOBAL LEVEL
GLOBAL MARKETS
GLOBAL POVERTY
GROWTH PROCESS
GROWTH RATE
HOUSEHOLD CONSUMPTION
HOUSEHOLD SIZE
HOUSEHOLD SURVEYS
HUMAN DEVELOPMENT
HUMAN DEVELOPMENT REPORT
INCIDENCE OF POVERTY
INCOME
INCOME DISTRIBUTION
INCOME ELASTICITY
INCOME INEQUALITY
INCOME LEVELS
INCOME POVERTY
INCOMES INCREASE
INEQUALITY
INTERNATIONAL AGENCIES
INTERNATIONAL POLICY
INTERNATIONAL POVERTY LINE
LEVELS OF CONSUMPTION
LIVING STANDARDS
LOW-INCOME COUNTRIES
LOW-INCOME COUNTRY
MEAN INCOME
MEAN INCOMES
MEASUREMENT OF POVERTY
MEASURING POVERTY
NATIONAL ACCOUNTS
NATIONAL GOVERNMENTS
NATIONAL POVERTY
NATIONAL POVERTY LINE
NATIONAL POVERTY LINES
NATIONAL RESEARCH COUNCIL
NEGATIVE EXTERNALITIES
NEWSLETTER
NUMBER OF PEOPLE
NUTRITIONAL NEEDS
PER CAPITA CONSUMPTION
PHYSICAL NEEDS
POLICY ANALYSIS
POLICY RESEARCH
POLICY RESEARCH WORKING PAPER
POOR
POOR COUNTRIES
POOR PEOPLE
POPULATION AND DEVELOPMENT
POPULATION GROWTH
POVERTY ASSESSMENTS
POVERTY COMPARISONS
POVERTY DYNAMICS
POVERTY GAP
POVERTY GAP INDEX
POVERTY INCIDENCE
POVERTY INCREASES
POVERTY LINE
POVERTY MEASURE
POVERTY MEASUREMENT
POVERTY MEASURES
POVERTY RATE
POVERTY REDUCTION
POVERTY REDUCTION STRATEGY
POVERTY REDUCTION STRATEGY PAPERS
PROGRESS
PURCHASING POWER
PURCHASING POWER PARITY
RATES OF GROWTH
RELATIVE INCOME
RELATIVE INCOMES
RELATIVE INEQUALITY
RELATIVE POSITION
RESPECT
RURAL
RURAL POVERTY
RURAL POVERTY LINES
SOCIAL AFFAIRS
SOCIAL JUSTICE
SOCIAL POLICY
SOCIAL SCIENCE
SOCIAL SECURITY
STANDARD DEVIATION
SUBSISTENCE
URBAN BIAS
URBAN POVERTY
URBANIZATION
Chen, Shaohua
Ravallion, Martin
Weakly Relative Poverty
geographic_facet The World Region
The World Region
relation Policy Research working paper ; no. WPS 4844
description Prevailing measures of relative poverty put an implausibly high weight on relative deprivation, such that measured poverty does not fall when all incomes grow at the same rate. This stems from the (implicit) assumption in past measures that very poor people incur a negligible cost of social inclusion. That assumption is inconsistent with evidence on the social roles of certain private expenditures in poor settings and with data on national poverty lines. The authors propose a new schedule of "weakly relative" lines that relax this assumption and estimate the implied poverty measures for 116 developing countries. The authors find that there is more relative poverty than past estimates have suggested. In 2005, one half of the population of the developing world lived in relative poverty, half of whom were absolutely poor. The total number of relatively poor rose over 1981-2005, despite falling numbers of absolutely poor. With sustained economic growth, the incidence of relative poverty becomes less responsive to further growth. Slower progress against relative poverty can thus be seen as the "other side of the coin" to success against absolute poverty.
format Publications & Research :: Policy Research Working Paper
author Chen, Shaohua
Ravallion, Martin
author_facet Chen, Shaohua
Ravallion, Martin
author_sort Chen, Shaohua
title Weakly Relative Poverty
title_short Weakly Relative Poverty
title_full Weakly Relative Poverty
title_fullStr Weakly Relative Poverty
title_full_unstemmed Weakly Relative Poverty
title_sort weakly relative poverty
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090622100104
http://hdl.handle.net/10986/4168
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