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The most common method measuring and reporting poverty is the headcount ratio, given as the percentage of the population that is below the poverty line. For example, The New York Times in July 2012 reported the poverty headcount ratio as 11.1% of American population in 1973, 15.2% in 1983, and 11.3% in 2000. [6] One of the undesirable features ...
Head count ratio in South Africa. The head count ratio (HCR) is the population proportion that exists, or lives, below the poverty threshold. [1] One of the undesirable features of the head count ratio is that it ignores the depth of poverty; if the poor become poorer, the head count index does not change. [2]
As a result of revisions in PPP exchange rates, poverty rates for individual countries cannot be compared with poverty rates reported in earlier editions." [11] "National poverty headcount ratio is the percentage of the population living below the national poverty line(s). National estimates are based on population-weighted subgroup estimates ...
The Foster–Greer–Thorbecke indices are a family of poverty metrics.The most commonly used index from the family, FGT 2, puts higher weight on the poverty of the poorest individuals, making it a combined measure of poverty and income inequality and a popular choice within development economics.
The depth of poverty is the average 'gap' (G) between the level of deprivation poor people experience and the poverty cut-off line. M1 = H x A x G. Adjusted Squared Poverty Gap (M2): This measure reflects the incidence, intensity, and depth of poverty, as well as inequality among the poor (captured by the squared gap, S). M2 = H x A x S.
Global map of countries by poverty headcount ratio at $6.85 a day (2017 PPP) (% of population), 2021 Romanian Harta globală în funcție de pragul de sărăcie de 6,85 USD pe zi (PPC 2017) (% din populație), 2021
Each nation has its own threshold for absolute poverty line; in the United States, for example, the absolute poverty line was US$15.15 per day in 2010 (US$22,000 per year for a family of four), [22] while in India it was US$1.0 per day [23] and in China the absolute poverty line was US$0.55 per day, each on PPP basis in 2010. [24]
When measured, poverty may be absolute or relative.Absolute poverty refers to a set standard which is consistent over time and between countries. An example of an absolute measurement would be the percentage of the population eating less food than is required to sustain the human body (approximately 2000–2500 calories per day).