Entries tagged with poverty rates

Sharada Ramanathan's picture
Sharada Ramanathan
• 01/25/18
• 0 Comments

As you may know, in October 2015, the World Bank released the new International Poverty Line. The new line boosts the 2005 level, $1.25 based on 2011 local prices converted to US dollars, up to $1.90/day. While it seems like a simple adjustment, measuring poverty across times and countries is an inherently fuzzy process.

The purpose of this second installment of the PPI Practitioner Guidance Series (read the first installment here) is to explain why these two lines are not necessarily equivalent at the level of individual countries, and how PPI users who are currently using the 2005 PPP lines to measure poverty may transition to using the 2011 PPP lines.

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Frank Ballard's picture
Frank Ballard
• 10/09/13
• 4 Comments

When using the PPI and reporting its results, it’s helpful to understand the difference between the terms poverty likelihood and poverty rate—sometimes referred to as estimated poverty. These terms are not interchangeable and express different concepts, so it is important to use them correctly.

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Frank Ballard's picture
Frank Ballard
• 04/10/13
• Posted in poverty rates, best practices
• 2 Comments

By Frank Ballard

If there were a one-to-one relationship between scores and likelihoods, there would be nothing wrong with averaging scores to calculate the poverty rate of a group. However, this is not the case and averaging scores will consistently lead to an incorrect poverty rate.

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