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Measuring poverty using qualitative perceptions of welfare

Author

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  • Pradhan, Menno
  • Ravallion, Martin

Abstract

The authors show how subjective poverty lines can be derived using simple qualitative assessments of perceived consumption adequacy, based on a household survey. Respondents were asked whether their consumption of food, housing, and clothing was adequate for their family's needs. The author's approach, by identifying the subjective poverty line without the usual"minimum-income question,"offers wide applications in developing country settings. They implement it using survey data for Jamaica and Nepal. The implied subjective poverty lines are robust to alternative methods of dealing with other components of consumption, for which the subjective"adequacy"question was not asked. The aggregate poverty rates based on subjective poverty lines come close to those based on independent"objective"poverty lines. There are notable differences, however, when geographic and demographic poverty profiles are constructed.

Suggested Citation

  • Pradhan, Menno & Ravallion, Martin, 1998. "Measuring poverty using qualitative perceptions of welfare," Policy Research Working Paper Series 2011, The World Bank.
  • Handle: RePEc:wbk:wbrwps:2011
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. F. le R. Booysen, 2001. "Non-Payment Of Services: A Problem Of Ability-To-Pay," South African Journal of Economics, Economic Society of South Africa, vol. 69(4), pages 674-697, December.
    2. Mussa, Richard, 2009. "Impact of fertility on objective and subjective poverty in Malawi," MPRA Paper 16089, University Library of Munich, Germany.
    3. Ravallion, Martin & Lokshin, Michael, 1999. "Subjective economic welfare," Policy Research Working Paper Series 2106, The World Bank.
    4. Christiaensen, Luc J.M. & Boisvert, Richard N., 2000. "On Measuring Household Food Vulnerability: Case Evidence from Northern Mali," Working Papers 127676, Cornell University, Department of Applied Economics and Management.
    5. Coudouel, Aline & Hentschel, Jesko & Wodon, Quentin, 2002. "Medición y análisis de la pobreza
      [Poverty Measurement and Analysis]
      ," MPRA Paper 10491, University Library of Munich, Germany.
    6. Khandker, Shahidur R. & Barnes, Douglas F. & Samad, Hussain A., 2010. "Energy poverty in rural and urban India : are the energy poor also income poor ?," Policy Research Working Paper Series 5463, The World Bank.
    7. Christophe Muller, 2006. "Defining Poverty Lines As a Fraction of Central Tendency," Southern Economic Journal, Southern Economic Association, vol. 72(3), pages 720-729, January.
    8. Bronfman, Javier, 2007. "Poverty Lines, What are they telling us?," MPRA Paper 63263, University Library of Munich, Germany, revised 15 Apr 2009.
    9. Coudouel, Aline & Hentschel, Jesko & Wodon, Quentin, 2002. "Измерение И Анализ Бедности
      [Poverty Measurement and Analysis]
      ," MPRA Paper 10492, University Library of Munich, Germany.
    10. Ravallion, Martin & Lokshin, Michael, 2001. "Identifying Welfare Effects from Subjective Questions," Economica, London School of Economics and Political Science, vol. 68(271), pages 335-357, August.
    11. Barnes, Douglas F. & Khandker, Shahidur R. & Samad, Hussain A., 2010. "Energy access, efficiency, and poverty : how many households are energy poor in Bangladesh ?," Policy Research Working Paper Series 5332, The World Bank.
    12. repec:dau:papers:123456789/4745 is not listed on IDEAS
    13. Mireille Razafindrakoto & François Roubaud, 2005. "Les multiples facettes de la pauvreté dans un pays en développement. Le cas de la capitale malgache," Économie et Statistique, Programme National Persée, vol. 383(1), pages 131-155.
    14. repec:crs:ecosta:es383-384-385g is not listed on IDEAS
    15. repec:pal:eurjdr:v:29:y:2017:i:5:d:10.1057_s41287-016-0071-2 is not listed on IDEAS
    16. Coudouel, Aline & Hentschel, Jesko & Wodon, Quentin, 2002. "Mesure et analyse de la pauvreté
      [Poverty Measurement and Analysis]
      ," MPRA Paper 10490, University Library of Munich, Germany.
    17. Paul Shaffer, 2008. "New Thinking on Poverty: Implications for Globalisation and Poverty Reduction Strategies," Working Papers 65, United Nations, Department of Economics and Social Affairs.
    18. Lanjouw, Peter & Milanovic, Branko & Paternostro, Stefano, 1998. "Poverty and the economic transition : how do changes in economies of scale affect poverty rates for different households?," Policy Research Working Paper Series 2009, The World Bank.

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