Search results
Results from the WOW.Com Content Network
It is calculated by averaging the square of the poverty gap ratio. By squaring each poverty gap data, the measure puts more weight the further a poor person's observed income falls below the poverty line. The squared poverty gap index is one form of a weighted sum of poverty gaps, with the weight proportionate to the poverty gap. [9]
The poverty gap index denotes the extent to which individuals fall below the poverty line (poverty gap) as a proportion of the poverty line. By summing these poverty gaps we derive the minimum cost of eliminating poverty. [10] This method is only reasonable if the transfers could be made perfectly efficiently, which is unlikely. [14]
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.
M1: This measure reflects the incidence, intensity and depth of poverty. The depth of poverty is the 'gap' (G) between poverty and the poverty line (M1 = H x A x G). [12] M2: This measures reflects the incidence, intensity, depth of poverty and inequality among the poor (the squared gap, S) (M2 = H x A x S). [13]
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.
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]
Sen poverty measure combines the Gini coefficient for people living below the poverty line with headcount ration of poverty and the average income of these below the poverty line. [20] This measure has been developed by Nobel Prize winner Amartya Sen but has not yet been used in the field of income inequality hypothesis.
The World Bank has estimated that SSNs have helped around 36% of the poorest in the world escape extreme poverty, the number being 8% for relative poverty The contribution to narrowing the inequality gap has been even bigger. Here the SSN has helped reducing the absolute poverty gap with 45% whereas the relative poverty gap is reduced by 16%.