Dollar a Day Revisited

Ravallion, Martin; Chen, Shaohua; Sangraula, Prem

Dollar a Day Revisited

2008

Ravallion, Martin | Chen, Shaohua | Sangraula, Prem

The paper presents the first major update of the international "$1 a day" poverty line, first proposed in 1990 for measuring absolute poverty by the standards of the world's poorest countries. In a new data set of national poverty lines we find that a marked economic gradient only emerges when consumption per person is above about $2.00 a day at 2005 purchasing power parity. Below this, the average poverty line is $1.25, which we propose as the new international poverty line. Relative poverty appears to matter more to developing countries than has been thought. The authors' proposed schedule of relative poverty lines is bounded below by $1.25, and rises at a gradient of $1 in $3 when mean consumption is above $2.00 a day.

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AGROVOC Keywords

basic needs bulletin data quality developed countries developing countries development research economics exchange rate food consumption food security household budget household consumption household surveys housing income income distribution living conditions living standards meat poverty reduction public sector rural areas rural population rural poverty social protection subsistence trinidad and tobago urban areas urban poverty urbanization vegetables vulnerability

Bibliographic information

Publisher

World Bank, Washington, DC

Other Subjects

Urban poverty lines; Poor; Consumption aggregate; Levels of consumption; Poverty reduction strategy; Food share; Aggregate poverty; Social sectors; Conflict; Food bundle; Purchasing power; Progress; Rural; Pro-poor; Poverty line; Poverty update; Food basket; Poverty reduction strategy paper; Measurement of poverty; Poverty comparisons; Reducing poverty; Policy research; Poor person; Income poverty; Income inequality; Total poverty line; Measuring poverty; Poverty gap; Consumption per capita; Poverty study; Social equity; Poverty reduction strategy papers; Social justice; Calories per person; Global markets; Population size; Consumer price index; Rich countries; Rural poverty line; National poverty lines; Global poverty; Total poverty; Poverty measures; Labor market; Income elasticity; Poverty assessment; Country specific; Vulnerability assessment; Food poverty line; Household incomes; Fight against poverty; Absolute poverty line; Job creation; International poverty line; Exchange rates; Individual welfare; Density function; Food poverty; Poverty assessments; Significant correlation; Purchasing power parity; Poor people; Absolute poverty; Low-income; Poverty profile; Income levels; Policy research working paper; Food needs; Country level; Country data; Risk sharing; Developing world; Calories per person per day; Population share; Poverty reduction program; Economic performance; Poverty profiles; Local markets; Poor countries; Poverty rates; Capital city; Low-income countries; Development report; Poverty measurement; National accounts; Schooling; Micro data; Empirical model; Food components; Good governance; Rural poverty lines; Urban centers; International poverty lines; Developing country; Population and development; Prevailing notions; Social policy; Functional form; Consumption expenditure; Empirical results; Standard deviation; Pro-poor growth; Aid donors; Error term; National poverty; Poverty measure

License

Policy Research Working Paper No. 4620http://creativecommons.org/licenses/by/3.0/World BankCC BY 3.0 Unported

Source

Policy Research Working Paper No. 4620

In AGRIS since: 2014-09-15

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http://hdl.handle.net/10986/6781

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