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Unambiguous Trends Combining Absolute and Relative Income Poverty ; New Results and Global Application

Title: Unambiguous Trends Combining Absolute and Relative Income Poverty ; New Results and Global Application
Authors: Decerf, Benoit; Ferrando, Mary
Publisher Information: Published by Oxford University Press on behalf of the World Bank
Publication Year: 2022
Collection: The World Bank: Open Knowledge Repository (OKR)
Subject Terms: INCOME POVERTY; RELATIVE POVERTY; ABSOLUTE POVERTY; GLOBAL POVERTY
Description: Over the period 1990–2015, many countries experienced a reduction in extreme absolute poverty and an increase in relative poverty. As a result, the global trend of “overall” income poverty, which combines absolute and relative poverty, may depend on arbitrary normative choices such as the priority given to the absolutely poor over the relatively poor. This article proves that, if one assumes that an individual who is absolutely poor is poorer than an individual who is only relatively poor, the overall poverty trend is sometimes independent of the priority parameter, even for cases for which absolute and relative poverty follow opposite trends. A survey conducted for this study suggests that this normative assumption collects broad support. This article applies overall poverty measures satisfying this assumption to assess the evolution of global poverty from 1990 to 2015. Results show that global overall poverty has been (at least) halved, regardless of the value chosen for the priority parameter.
Document Type: article in journal/newspaper
File Description: application/pdf
Language: English
Relation: World Bank Economic Review; The World Bank Economic Review; https://hdl.handle.net/10986/41095
DOI: 10.1596/41095
Availability: https://hdl.handle.net/10986/41095; https://doi.org/10.1596/41095
Rights: https://creativecommons.org/licenses/by-nc-nd/3.0/igo/ ; World Bank ; CC BY-NC-ND 3.0 IGO
Accession Number: edsbas.7F1149EC
Database: BASE