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The Effect of New PPP Estimates on Global Poverty: A First Look

Author

Listed:
  • Aziz Atamanov
  • Christoph Lakner
  • Daniel Gerszon Mahler
  • Samuel Kofi Tetteh Baah
  • Judy Yang

Abstract

This paper provides an initial analysis of the impact on the World Bank’s global poverty estimates of the revised 2011 and new 2017 PPPs published in May 2020. The revised 2011 PPPs slightly increase poverty in South Asia and Sub-Saharan Africa, causing the extreme poverty headcount ratio for the world to rise by 0.3 percentage points to 10.3% in 2015 (equivalent to 20 million more poor people). The 2017 PPPs have the opposite effect: extreme poverty decreases in Sub-Saharan Africa, reducing the global poverty estimate slightly by 0.6pp to 9.4% in 2015 (equivalent to 46 million fewer poor people). The long-run trends in global and regional poverty remain unchanged. Length: 36 pages

Suggested Citation

  • Aziz Atamanov & Christoph Lakner & Daniel Gerszon Mahler & Samuel Kofi Tetteh Baah & Judy Yang, 2020. "The Effect of New PPP Estimates on Global Poverty: A First Look," Global Poverty Monitoring Technical Note Series 12, The World Bank.
    • Handle: RePEc:wbk:wbgpmt:12
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    File URL: https://documents.worldbank.org/en/publication/documents-reports/documentdetail/191631589896884566/the-effect-of-new-ppp-estimates-on-global-poverty-a-first-look
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    Cited by:

    1. Angus Deaton & Paul Schreyer, 2022. "GDP, Wellbeing, and Health: Thoughts on the 2017 Round of the International Comparison Program," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 68(1), pages 1-15, March.
    2. Cheng, Xiaoyu & Wang, Jianying & Chen, Kevin Z., 2022. "Does villager social capital hinder poverty targeting? Evidence from poverty-stricken county of Western China," China Economic Review, Elsevier, vol. 71(C).
    3. Warda Najeeb Jamal & Rana M. Zahid Hafeez & Owais Shafique & Razi Razzaq & Gulfam Asif & Muhammad Waqas Ashraf, 2021. "Impact Of Microcredit Finance On The Socioeconomic Status Of The Underprivileged Populace Of Punjab: Through The Mediating Effect Of Knowledge Sharing Ability And Financial And Legal Awareness," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 10(4), pages 113-125, December.
    4. Alan Heston & D.S. Prasada Rao, 2021. "Price Levels, Size, Distribution and Growth of the World Economy: Insights from recent International Comparisons of Prices and Real Product," PIER Working Paper Archive 21-013, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    5. Christoph Lakner & Daniel Gerszon Mahler & Mario Negre & Espen Beer Prydz, 2022. "How much does reducing inequality matter for global poverty?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(3), pages 559-585, September.
    6. Jolliffe,Dean Mitchell & Mahler,Daniel Gerszon & Lakner,Christoph & Atamanov,Aziz & Tetteh Baah,Samuel Kofi, 2022. "Assessing the Impact of the 2017 PPPs on the International Poverty Line and Global Poverty," Policy Research Working Paper Series 9941, The World Bank.
    7. Edochie,Ifeanyi Nzegwu & Freije-Rodriguez,Samuel & Lakner,Christoph & Moreno Herrera,Laura Liliana & Newhouse,David Locke & Sinha Roy,Sutirtha & Yonzan,Nishant, 2022. "What Do We Know about Poverty in India in 2017/18 ?," Policy Research Working Paper Series 9931, The World Bank.
    8. Andy Sumner & Eduardo Ortiz-Juarez & Christopher Hoy, 2020. "Precarity and the pandemic: COVID-19 and poverty incidence, intensity, and severity in developing countries," WIDER Working Paper Series wp-2020-77, World Institute for Development Economic Research (UNU-WIDER).
    9. Christopher Hoy & Andy Sumner, 2021. "The End of Global Poverty: Is the UN Sustainable Development Goal 1 (Still) Achievable?," Global Policy, London School of Economics and Political Science, vol. 12(4), pages 419-429, September.

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