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Living on less than a dollar a day

103686006_a17fae290cBy swoodie on May 09, 2007
Viewed 2524 times
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Proportion of population below $1 per day is the percentage of the population living on less than $1.08 a day at 1993 international prices. The one dollar a day poverty line is compared to consumption or income per person and includes consumption from own production and income in kind. This poverty line has fixed purchasing power across countries or areas and is often called an “absolute poverty line” or measure of extreme poverty.

GOAL AND TARGET ADDRESSED
Goal 1. Eradicate extreme poverty and hunger Target 1. Halve, between 1990 and 2015, the proportion of people whose income is less than one dollar a day

RATIONALE
The indicator allows for comparing and aggregating progress across countries in reducing the number of people living under extreme poverty and for monitoring trends at the global level.

METHOD OF COMPUTATION
The World Bank regularly estimates poverty based on the one dollar a day poverty line. Estimates are based on incomes or consumption levels derived from household surveys. Whenever possible, consumption is preferred to income for measuring poverty. When consumption data are not available, income is used.

Consumption, which includes consumption for own production, or income per person, and its distribution are estimated from household surveys. Household consumption or income is divided by the number of people in the household to establish the income per person.

The distribution of consumption or income is estimated using empirical Lorenz (distribution) curves weighted by household size. In all cases measures of poverty to obtain Lorenz curves are calculated from primary data sources rather than existing estimates.

Poverty in a country is estimated by converting the one dollar a day poverty line to local currency using the latest purchasing power parity (PPP) exchange rates for consumption taken from World Bank estimates. Local consumer price indices are then used to adjust the international poverty line in local currency to prices prevailing around the time of the surveys. This international poverty line is used to identify how many people are below the one dollar a day threshold.

The PPP-based international poverty line is required only to allow comparisons across countries and to produce estimates of poverty at the aggregate level. Most countries also set their own poverty lines.

Source

Summary

    Time Series Data

  • 2002 to 2002
    (less than a minute)
    Yearly
  • 6
    3

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Column Summaries

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Region
Clear
Percent of people on <$1 a day by Region

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6
East Asia & Pacific … Sub-Saharan Africa
Year
Clear
Percent of people on <$1 a day

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2002 to 2002
(less than a minute)
Yearly
Percent of people on <$1 a day
Clear
Percent of people on <$1 a day

see all graphs

44.0
16.55
1.6
99.3
15.71