Abbreviated Name:
Proportion of population below the international poverty line
Indicator Name:
Proportion of population below the international poverty line
Domain:
Health determinants and risks / Demographic and socioeconomic determinants
Related Terms:
Below poverty line, consumption pattern
Definition:
The national poverty rate is the percentage of the total population living below the national poverty line (less than $2.15 a day). The rural poverty rate is the percentage of the rural population living below the national poverty line (or in cases where a separate, rural poverty line is used, the rural poverty line). Urban poverty rate is the percentage of the urban population living below the national poverty line (or in cases where a separate, urban poverty line is used, the urban poverty line). Estimates are based on population-weighted subgroup estimates from household surveys.
Measurment Method:
Information on consumption and income is obtained through sample surveys in which households are asked to answer detailed questions on their spending habits and sources of income. Information on consumption and income is obtained through sample surveys in which households are asked to answer detailed questions on their spending habits and sources of income. Individual income or consumption levels are calculated as total household income or consumption divided by household size or “effective” household size in some cases. An “effective” household size is calculated based on household composition to reflect assumed efficiencies in consumption; adjustments may also be made to reflect the number of children in a household. However, the World Bank’s preferred methodology is to make no such adjustments. National poverty rates use a country specific poverty line, which reflects the country’s economic and social circumstances. In some case, the national poverty line is adjusted for different areas (such as urban and rural) within the country, especially when prices or the availability of goods and services differs. National poverty lines tend to have higher purchasing power in rich countries, where more generous standards are used, than in poor countries. In some countries the urban poverty line in common use has a higher real value—meaning that it allows the purchase of more commodities for consumption—than does the rural poverty line.
Numerator:
Total household income or consumption
Denominator
Household size or “effective” household size (based on household composition
Estimation method:
Numerator: total household income or consumption; denominator: household size or “effective” household size (based on household composition); divide then express as percentage adjusted for different areas (e.g. urban / rural) within the country.
Disaggregation:
Residence (urban / rural)
Primary data sources:
Nationally representative household surveys
Alternate data sources:
World Bank reports
Measurment frequency:
3-5 years