Estimating International Poverty Lines from Comparable National Thresholds

36 Pages Posted: 20 Apr 2016 Last revised: 21 May 2020

See all articles by Dean Jolliffe

Dean Jolliffe

World Bank, DECDG; IZA Institute of Labor Economics; Global Labor Organization (GLO); Johns Hopkins University, Paul H. Nitze School of Advanced International Studies (SAIS), Students

Espen Beer Prydz

World Bank - Development Research Group (DECRG)

Date Written: March 17, 2016

Abstract

World Bank's international poverty line of $1.90/day, at 2011 purchasing power parity, is based on a collection of national poverty lines, which were originally used to set the international poverty line of $1.25/day at 2005 purchasing power parity. This paper proposes an approach for estimating a more recent, complete, and comparable collection of national poverty thresholds from reported national poverty rates. The paper presents a set of international poverty lines based on this new database of national poverty lines. In contrast to the lines used to estimate the $1.90 international poverty line, this approach produces national poverty lines that are (1) consistent with national poverty rates, (2) expressed in common units, and (3) provide greater support to the estimated international poverty line. These national poverty lines are used to estimate an extreme international poverty line, and three higher lines that are more relevant for higher-income countries. A key finding provides evidence of the robustness and relevance of the $1.90 international poverty line as a measure of extreme poverty for low-income countries.

Keywords: Inequality, Inflation, Poverty Reduction Strategies, Poverty Diagnostics, Poverty Monitoring & Analysis, Poverty Lines, Poverty Impact Evaluation, Small Area Estimation Poverty Mapping, Poverty Assessment, Economic Theory & Research, Economic Growth, Industrial Economics

Suggested Citation

Jolliffe, Dean and Prydz, Espen Beer, Estimating International Poverty Lines from Comparable National Thresholds (March 17, 2016). World Bank Policy Research Working Paper No. 7606, Available at SSRN: https://ssrn.com/abstract=2749432

Dean Jolliffe (Contact Author)

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Espen Beer Prydz

World Bank - Development Research Group (DECRG) ( email )

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United States

HOME PAGE: http://www.worldbank.org/en/about/people/espen-beer-prydz

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