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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]
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 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 ]
According to World Bank, "Poverty headcount ratio at a defined value a day is the percentage of the population living on less than that value a day at 2017 purchasing power adjusted prices. As a result of revisions in PPP exchange rates, poverty rates for individual countries cannot be compared with poverty rates reported in earlier editions."
For example, a low-income state like Mississippi — where the median income for an individual is the lowest in the country at $47,446 — also has the highest rate of persistent poverty at 24.4% ...
Adjusted headcount ratio (M0), otherwise known as the MPI: This measure reflects both the incidence of poverty (the percentage of the population who are poor) and the intensity of poverty (the percentage of deprivations suffered by each person or household on average). M0 is calculated by multiplying the incidence (H) by the intensity (A). M0 ...
Poverty headcount ratio at $1.90 a day (2011 PPP) (% of population). Based on World Bank data ranging from 1998 to 2018. [16] To assist in measuring this, the World Bank has a daily per capita international poverty line (IPL), a global absolute minimum, of $2.15 a day as of September 2022. [17]
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