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Estimating a Poverty Line for Brazil Based on the 2017-18 Household Budget Survey

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  • Lara Ibarra,Gabriel
  • Paffhausen,Anna Luisa
  • Vasconcellos Archer Duque,Daniel

Abstract

This study applies the cost-of-basic-needs approach to estimate food and totalpoverty lines for the Brazilian case. Using detailed data on expenditures from a 2017/18 household budget survey andcaloric information from the Brazilian Table of Food Composition, calorie intake is assigned to more than 1,400items to estimate the cost per calorie for a representative group of the population. The preferred results estimate thevalue of the food poverty line at R$258 (in 2018 urban Southeast prices), and the lower total poverty line(covering also nonfood necessities) at R$455. Robustness checks show that varying the assumptions leads toqualitatively similar results. The findings are also close in value to lines found in earlier studies and the societalpoverty line. Finally, this work provides a data-driven validation of the income threshold used to determineeligibility for Brazil’s social registry.

Suggested Citation

  • Lara Ibarra,Gabriel & Paffhausen,Anna Luisa & Vasconcellos Archer Duque,Daniel, 2021. "Estimating a Poverty Line for Brazil Based on the 2017-18 Household Budget Survey," Policy Research Working Paper Series 9878, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9878
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    References listed on IDEAS

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    1. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    2. Sergei Suarez Dillon Soares, 2009. "Metodologias para Estabelecer a Linha de Pobreza: Objetivas, Subjetivas, Relativas, Multidimensionais," Discussion Papers 1381, Instituto de Pesquisa Econômica Aplicada - IPEA.
    3. Robert C. Allen, 2017. "Absolute Poverty: When Necessity Displaces Desire," American Economic Review, American Economic Association, vol. 107(12), pages 3690-3721, December.
    4. Ferreira, Francisco H. G. & Lanjouw, Peter & Neri, Marcelo Côrtes, 2003. "A Robust Poverty Profile for Brazil Using Multiple Data Sources," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 57(1), January.
    5. World Bank, 2007. "Brazil : Measuring Poverty Using Household Consumption," World Bank Publications - Reports 8037, The World Bank Group.
    6. Robert C. Allen, 2017. "Absolute Poverty: When Necessity Displaces Desire REVISED," Working Papers 20170005, New York University Abu Dhabi, Department of Social Science, revised Jun 2017.
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