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Squaring the poverty gap severity of poverty gives an indication of inequality among the population living below the poverty line in other words a measure of the severity of deprivation of those living in absolute poverty.
Income gap poverty measurement. This is also known as living below the poverty line an income level below which a person is unable to meet basic needs depth of poverty. Captures the average shortfall in income of the population living below the poverty line. If y p stands for minimum income or consumption expenditure representing poverty line y t stands for income or consumption expenditure of any individual the y r y t will indicate the severity or depth of this poverty. Poverty severity squared poverty gap.
0 20 40 60 2005 2008 latin. For example if we say poverty line in terms of per capita income is rs 1000 then any household earning below rs 1000 is considered as poor. Measuring the gap between rich and poor over the last 30 years income inequality has been rising in most unece countries. How far below the poverty line the poor population lives.
301 which is the aggregate short fall of the income of all the poor taken together from the poverty line. Also called the poverty gap. A threshold level of income also called poverty line is defined to differentiate between poor and non poor. Squared poverty gap index also known poverty severity index or is related to poverty gap index.
Measures how poor the poor are. Poverty gap concept seeks to measure severity or depth of poverty of a person. In other words poverty severity. This is the mean shortfall in income or consumption from the poverty line of 3 20 a day counting the nonpoor as having zero shortfall expressed as a percentage of the poverty line.
The poverty gap is a ratio showing the average shortfall of the total population from the poverty line the minimum level of income required to secure the basic necessities for survival. Another common measure is the so called poverty gap used by the united states social security administration see 5 p. In many countries the widening gap between the rich and the poor has stimulated increasing public debate on inequalities particularly since the beginning of the global economic downturn. In 2013 48 7 of world population had income less than 5 50.
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