3.4.4—Poverty and poverty measurement

Absolute poverty concerns resources below a basic threshold; relative poverty compares resources with a society’s typical standard.

Measures depend on prices, household composition, non-cash support and the chosen threshold.

State the threshold and compare monetary measure with living conditions.

A household can rise above an absolute line but remain far below median income.

Poverty is multidimensional, not only a dollar figure.

Single poverty indicators include an international poverty line for cross-country extreme-poverty comparisons and a minimum income standard defined for a particular society. Relative poverty is commonly tied to typical income, so it can persist while absolute living standards rise. The Multidimensional Poverty Index combines deprivations such as health, education and living standards. Results depend on prices, household size, informal income, missing data, thresholds, dimensions and weights; therefore state the definition before comparing places or years.