Measuring Poverty
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Chapter III the Poverty of Poverty Measurement
45 Chapter III The poverty of poverty measurement Measuring poverty accurately is important within the context of gauging the scale of the poverty challenge, formulating policies and assessing their effectiveness. However, measurement is never simply a counting and collating exercise and it is necessary, at the outset, to define what is meant by the term “poverty”. Extensive problems can arise at this very first step, and there are likely to be serious differences in the perceptions and motivations of those who define and measure poverty. Even if there is some consensus, there may not be agreement on what policies are appropriate for eliminating poverty. As noted earlier, in most developed countries, there has emerged a shift in focus from absolute to relative poverty, stemming from the realization that the perception and experience of poverty have a social dimension. Although abso- lute poverty may all but disappear as countries become richer, the subjective perception of poverty and relative deprivation will not. As a result, led by the European Union (EU), most rich countries (with the notable exception of the United States of America), have shifted to an approach entailing relative rather than absolute poverty lines. Those countries treat poverty as a proportion, say, 50 or 60 per cent, of the median per capita income for any year. This relative measure brings the important dimension of inequality into the definition. Alongside this shift in definition, there has been increasing emphasis on monitoring and addressing deficits in several dimensions beyond income, for example, housing, education, health, environment and communication. Thus, the prime concern with the material dimensions of poverty alone has expanded to encompass a more holistic template of the components of well-being, includ- ing various non-material, psychosocial and environmental dimensions. -
Standard of Living in America Today
STANDARD OF LIVING IN AMERICA TODAY Standard of Living is one of the three areas measured by the American Human Development Index, along with health and education. Standard of living is measured using median personal earnings, the wages and salaries of all workers 16 and over. While policymakers and the media closely track Gross Domestic Product (GDP) and judge America’s progress by it, the American Human Development Index tracks median personal earnings, a better gauge of ordinary Americans’ standard of living. The graph below chronicles two stories of American economic history over the past 35 years. One is the story of extraordinary economic growth as told by GDP; the other is a story of economic stagnation as told by earnings, which have barely budged since 1974 (both in constant dollars). GDP vs. Median Earnings: Change Since 1974 STRIKING FINDINGS IN STANDARD OF LIVING FROM THE MEASURE OF AMERICA 2010-2011: The Measure of America 2010-2011 explores the median personal earnings of various groups—by state, congressional district, metro area, racial/ethnic groups, and for men and women—and reveals alarming gaps that threaten the long-term well-being of our nation: American women today have higher overall levels of educational attainment than men. Yet men earn an average of $11,000 more. In no U.S. states do African Americans, Latinos, or Native Americans earn more than Asian Americans or whites. By the end of the 2007-9 recession, unemployment among the bottom tenth of U.S. households, those with incomes below $12,500, was 31 percent, a rate higher than unemployment in the worst year of the Great Depression; for households with incomes of $150,000 and over, unemployment was just over 3 percent, generally considered as full employment. -
An Evaluation of Poverty Prevalence in China: New Evidence from Four
An Evaluation of Poverty Prevalence in China: New Evidence from Four Recent Surveys Chunni ZHANG, Qi XU, Xiang ZHOU, Xiaobo ZHANG, Yu XIE Abstract In this paper, we calculate and compare the poverty incidence rate in China using four nationally representative surveys: the China Family Panel Studies (CFPS, 2010), the Chinese General Social Survey (CGSS, 2010), the Chinese Household Finance Survey (CHFS, 2011), and the Chinese Household Income Project (CHIP, 2007). Using both international and official domestic poverty standards, we show that poverty prevalence at the national, rural, and urban levels based on the CFPS, CGSS and CHFS are much higher than official estimation and those based on the CHIP. The study highlights the importance of using independent datasets to validate official statistics of public and policy concern in contemporary China. 1 An Evaluation of Poverty Prevalence in China: New Evidence from Four Recent Surveys Since the economic reform began in 1978, China’s economic growth has not only greatly improved the average standard of living in China but also been credited with lifting hundreds of millions of Chinese out of poverty. According to one report (Ravallion and Chen, 2007), the poverty rate dropped from 53% in 1981 to 8% in 2001. Because of the vast size of the Chinese population, even a seemingly low poverty rate of 8% implies that there were still more than 100 million Chinese people living in poverty, a sizable subpopulation exceeding the national population of the Philippines and falling slightly short of the total population of Mexico. Hence, China still faces an enormous task in eradicating poverty. -
Poverty and Food Security in La Crosse County, Wisconsin
Poverty and Food Security in La Crosse County, Wisconsin Katherine J. Curtis, Judi Bartfeld, and Sarah Lessem Poverty in Wisconsin rose substantially in the 2000s and early 2010s. In 2012, 13.2% of the state’s population— roughly 737,356 people1—lived in poverty, as compared to 8.7% in 2000.2 Wisconsin residents are better off economically than the nation as a whole, which has a 15.9% poverty rate. Nonetheless, the official statewide poverty rate has remained well above 12% since 2009. Two recessions and persistently high unemployment have increased economic hardship in Wisconsin. As a result, a larger proportion of households in the state now live in poverty and struggle to secure adequate and nutritious food. What is poverty? ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– The poverty threshold is intended to indicate the do not account for geographic differences in costs income people need for a minimally adequate of living, they are one way to compare economic standard of living. The threshold varies according hardship among groups, across locations, and over to the number of household members and their time. ages, and is adjusted each year to account for Most researchers and many policymakers agree inflation. that poverty lines underestimate the minimum In 2012, the poverty threshold was $23,050 for a resources necessary to meet basic needs. At the family of four and $11,170 for one person.3 same time, Wisconsin residents with incomes Households are considered poor if their pre-tax higher than the federal poverty line still qualify for income is below this amount. While poverty rates several state and federal needs-based programs. -
The Human Development Index (HDI)
Contribution to Beyond Gross Domestic Product (GDP) Name of the indicator/method: The Human Development Index (HDI) Summary prepared by Amie Gaye: UNDP Human Development Report Office Date: August, 2011 Why an alternative measure to Gross Domestic Product (GDP) The limitation of GDP as a measure of a country’s economic performance and social progress has been a subject of considerable debate over the past two decades. Well-being is a multidimensional concept which cannot be measured by market production or GDP alone. The need to improve data and indicators to complement GDP is the focus of a number of international initiatives. The Stiglitz-Sen-Fitoussi Commission1 identifies at least eight dimensions of well-being—material living standards (income, consumption and wealth), health, education, personal activities, political voice and governance, social connections and relationships, environment (sustainability) and security (economic and physical). This is consistent with the concept of human development, which focuses on opportunities and freedoms people have to choose the lives they value. While growth oriented policies may increase a nation’s total wealth, the translation into ‘functionings and freedoms’ is not automatic. Inequalities in the distribution of income and wealth, unemployment, and disparities in access to public goods and services such as health and education; are all important aspects of well-being assessment. What is the Human Development Index (HDI)? The HDI serves as a frame of reference for both social and economic development. It is a summary measure for monitoring long-term progress in a country’s average level of human development in three basic dimensions: a long and healthy life, access to knowledge and a decent standard of living. -
POOR MEASUREMENT: New Census Report on Measuring Poverty Raises Concerns by Jared Bernstein and Arloc Sherman
820 First Street, NE, Suite 510 Washington, DC 20002 1333 H Street, NW, Suite 300, Washington, DC 20005 202-408-1080 www.cbpp.org 202-775-8810 www.epinet.org March 28, 2006 POOR MEASUREMENT: New Census Report on Measuring Poverty Raises Concerns By Jared Bernstein and Arloc Sherman On February 14, the Bureau of the KEY FINDINGS Census released its latest report on 1 alternative measures of poverty. • The Census Bureau recently unveiled new Among social scientists, there is alternative poverty measures “intended to provide considerable dissatisfaction with the a more complete measure of economic well- official approach to poverty being.” The new poverty measures, which measurement, and this document is produce poverty rates as much as one-third below part of a welcome research initiative the official poverty rate, contain some features by Census analysts to improve the that have been characterized by poverty experts way that poverty in America is and past Census reports as flawed or incomplete. measured and understood. The • Unlike past Census reports on alternative Census Bureau has consistently measures of poverty, this report does not include a produced important and insightful set of poverty measures that follow the work in this area, carrying on the recommendations of an expert panel of the mission set forth by a 1995 National National Academy of Sciences (NAS) and that are Academy of Sciences (NAS) report, more complete than either the official poverty rate Measuring Poverty: A New Approach. or the new measures. Poverty rates under the The NAS report has been widely NAS measures are generally higher than the viewed in the research community as official poverty rate. -
The Economic Foundations of Authoritarian Rule
University of South Carolina Scholar Commons Theses and Dissertations 2017 The conomicE Foundations of Authoritarian Rule Clay Robert Fuller University of South Carolina Follow this and additional works at: https://scholarcommons.sc.edu/etd Part of the Political Science Commons Recommended Citation Fuller, C. R.(2017). The Economic Foundations of Authoritarian Rule. (Doctoral dissertation). Retrieved from https://scholarcommons.sc.edu/etd/4202 This Open Access Dissertation is brought to you by Scholar Commons. It has been accepted for inclusion in Theses and Dissertations by an authorized administrator of Scholar Commons. For more information, please contact [email protected]. THE ECONOMIC FOUNDATIONS OF AUTHORITARIAN RULE by Clay Robert Fuller Bachelor of Arts West Virginia State University, 2008 Master of Arts Texas State University, 2010 Master of Arts University of South Carolina, 2014 Submitted in Partial Fulfillment of the Requirements For the Degree of Doctor of Philosophy in Political Science College of Arts and Sciences University of South Carolina 2017 Accepted by: John Hsieh, Major Professor Harvey Starr, Committee Member Timothy Peterson, Committee Member Gerald McDermott, Committee Member Cheryl L. Addy, Vice Provost and Dean of the Graduate School © Copyright Clay Robert Fuller, 2017 All Rights Reserved. ii DEDICATION for Henry, Shannon, Mom & Dad iii ACKNOWLEDGEMENTS Special thanks goes to God, the unconditional love and support of my wife, parents and extended family, my dissertation committee, Alex, the institutions of the United States of America, the State of South Carolina, the University of South Carolina, the Department of Political Science faculty and staff, the Walker Institute of International and Area Studies faculty and staff, the Center for Teaching Excellence, undergraduate political science majors at South Carolina who helped along the way, and the International Center on Nonviolent Conflict. -
Income and Poverty in the United States: 2018 Current Population Reports
Income and Poverty in the United States: 2018 Current Population Reports By Jessica Semega, Melissa Kollar, John Creamer, and Abinash Mohanty Issued September 2019 Revised June 2020 P60-266(RV) Jessica Semega and Melissa Kollar prepared the income section of this report Acknowledgments under the direction of Jonathan L. Rothbaum, Chief of the Income Statistics Branch. John Creamer and Abinash Mohanty prepared the poverty section under the direction of Ashley N. Edwards, Chief of the Poverty Statistics Branch. Trudi J. Renwick, Assistant Division Chief for Economic Characteristics in the Social, Economic, and Housing Statistics Division, provided overall direction. Vonda Ashton, David Watt, Susan S. Gajewski, Mallory Bane, and Nancy Hunter, of the Demographic Surveys Division, and Lisa P. Cheok of the Associate Directorate for Demographic Programs, processed the Current Population Survey 2019 Annual Social and Economic Supplement file. Andy Chen, Kirk E. Davis, Raymond E. Dowdy, Lan N. Huynh, Chandararith R. Phe, and Adam W. Reilly programmed and produced the historical, detailed, and publication tables under the direction of Hung X. Pham, Chief of the Tabulation and Applications Branch, Demographic Surveys Division. Nghiep Huynh and Alfred G. Meier, under the supervision of KeTrena Phipps and David V. Hornick, all of the Demographic Statistical Methods Division, conducted statistical review. Lisa P. Cheok of the Associate Directorate for Demographic Programs, provided overall direction for the survey implementation. Roberto Cases and Aaron Cantu of the Associate Directorate for Demographic Programs, and Charlie Carter and Agatha Jung of the Information Technology Directorate prepared and pro- grammed the computer-assisted interviewing instrument used to conduct the Annual Social and Economic Supplement. -
NYC Opportunity 2018 Poverty Report
The New York City Government Poverty Measure is released NYC Opportunity annually by the Mayor’s Office for Economic Opportunity. The measure is a more realistic metric than the official poverty measure released by the federal government and one that 2018 Poverty Report provides a detailed description of the nature of poverty in New York City. This year’s report contains data from 2005-2016, www1.nyc.gov/site/opportunity/poverty-in-nyc/poverty-measure.page the most recent data available. Highlights of our findings are shown below. What is the NYCgov NYCgov Poverty and Near Poverty Measure? Poverty Rates, 2014–2016 Measuring poverty involves setting a threshold (where is the poverty line?) and calculating income (how much of what?) The NYCgov poverty measure is a more realistic 45.1% NYCgov Near Poverty measure of poverty than the federal poverty measure. The NYCgov threshold is based on national spending on necessities: food, shelter, clothing and utilities and is adjusted for the higher cost of housing in New York City. The threshold varies by family size. 44.2% The NYCgov income measure includes multiple resources: after-tax earnings (including tax credits) and the value of cash and in-kind benefits (SNAP, housing vouchers, etc.). We subtract from this necessary expenses: medical spending plus commuting and 43.6% childcare for workers to derive total income. 20.6% NYCgov Poverty The poverty rate is the percent of the population whose NYCgov income is less than the NYCgov threshold. The near poverty rate shown here represents the percent 19.9% of the population with income up to 150 percent of their threshold. -
The Challenge of Measuring Poverty and Inequality: a Comparative Analysis of the Main Indicators
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Martín-Legendre, Juan Ignacio Article The challenge of measuring poverty and inequality: a comparative analysis of the main indicators European Journal of Government and Economics (EJGE) Provided in Cooperation with: Universidade da Coruña Suggested Citation: Martín-Legendre, Juan Ignacio (2018) : The challenge of measuring poverty and inequality: a comparative analysis of the main indicators, European Journal of Government and Economics (EJGE), ISSN 2254-7088, Universidade da Coruña, A Coruña, Vol. 7, Iss. 1, pp. 24-43, http://dx.doi.org/10.17979/ejge.2018.7.1.4331 This Version is available at: http://hdl.handle.net/10419/217762 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. -
Does Welfare Reduce Poverty?
Research in Economics 70 (2016) 143–157 Contents lists available at ScienceDirect Research in Economics journal homepage: www.elsevier.com/locate/rie Does welfare reduce poverty? George J. Borjas a,b a Robert W. Scrivner Professor of Economics and Social Policy, Harvard Kennedy School, USA b National Bureau of Economic Research, USA article info abstract Article history: The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 made Received 6 October 2015 fundamental changes in the federal system of public assistance in the United States, and Accepted 6 November 2015 specifically limited the eligibility of immigrant households to receive many types of aid. Available online 22 November 2015 Many states chose to protect their immigrant populations from the presumed adverse Keywords: effects of welfare reform by offering state-funded assistance to these groups. I exploit Immigration these changes in eligibility rules to examine the link between welfare and poverty rates in Poverty the immigrant population. My empirical analysis documents that the welfare cutbacks did Welfare reform not increase poverty rates. The immigrant families most affected by welfare reform responded by substantially increasing their labor supply, thereby raising their family income and slightly lowering their poverty rate. In the targeted immigrant population, therefore, welfare does not reduce poverty; it may actually increase it. & 2015 University of Venice. Published by Elsevier Ltd. All rights reserved. 1. Introduction The rapid growth of the welfare state spawned a large literature examining the factors that determine whether families participate in public assistance programs, and investigating the programs’ impact on various social and economic outcomes, such as labor supply, household income, and family structure.1 Remarkably, little attention has been paid to the impact of welfare programs on a summary measure of the family’s well being: the family’s poverty status. -
Lecture 1: Measuring Poverty, Slide 0
AREC 345: Global Poverty & Economic Development Lecture 1: Measuring Poverty and Inequality Professor: Pamela Jakiela Department of Agricultural and Resource Economics University of Maryland, College Park TheGoodNews Worldwide, the total number of people living in extreme poverty has been declining at an increasing rate since the 1970s Source: Max Roser, Our World in Data (2016) AREC 345: Global Poverty & Economic Development Lecture 1: Measuring Poverty, Slide 2 TheGoodNews Three Questions: 1. How did we arrive at this number? 2. What do we mean by extreme poverty? 3. Where would we find the people living in extreme poverty? Oxford English Dictionary definition of poverty: “lacking sufficient money to live at a standard considered comfortable or normal in society” • Until recently, the poorest people in every country lived in absolute poverty, unable to afford basic necessities like food, shelter, etc. • Now we are lucky enough that this is no longer the case (OED example: “people who were too poor to afford a telephone”) AREC 345: Global Poverty & Economic Development Lecture 1: Measuring Poverty, Slide 3 Measuring Inequality Measuring Inequality Standard approach to measuring income inequality: examine the share of total income received by each quintile (or fifth of the population) Inequality in the U.S. Quintile Income Share 13.8 29.3 3 15.1 4 23.0 5 48.8 Source: 2013 data from US Census Bureau AREC 345: Global Poverty & Economic Development Lecture 1: Measuring Poverty, Slide 5 Measuring Inequality We can present the same information graphically