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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, 2020. "GDP, Wellbeing, and Health: Thoughts on the 2017 Round of the International Comparison Program," NBER Working Papers 28177, National Bureau of Economic Research, Inc.

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