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9.6B: Measuring Poverty
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- Compare the differences between absolute and relative poverty
- Economic measures of poverty include access to material needs, typically necessities such as food, clothing, shelter, and safe drinking water, measures of income, or measure of wealth.
- Social measures of poverty include access to information, education, health care, or political power.
- Absolute poverty refers to a fixed threshold based on access to income and material resources, while relative inequality is measured using a region’s median income and standard of living and therefore reflects income inequality.
- Relative poverty explains poverty as socially defined and dependent on social context. Usually, relative poverty is measured as the percentage of the population with income less than some fixed proportion of median income.
- World Bank: A group of five financial organizations whose purpose is economic development and the elimination of poverty.
- absolute poverty: A measure of poverty based on a set standard that is consistent over time and between countries, referring to the ability of individuals or groups to meet their basic needs.
- relative poverty: A measure of wealth inequality, describing an individual or group’s wealth relative to an other individual or group.