Measuring Poverty Using Qualitative Perceptions of Consumption Adequacy

We show that subjective poverty lines can be derived using simple qualitative assessments of perceived consumption adequacy based on a household survey. We implement the method using survey data for Jamaica and Nepal. Respondents were asked whether their consumptions of food, housing, and clothing w...

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Bibliographic Details
Published in:The review of economics and statistics 2000-08, Vol.82 (3), p.462-471
Main Authors: Pradhan, Menno, Ravallion, Martin
Format: Article
Language:English
Subjects:
Consumer goods
Consumption (Economics)
Cost and standard of living
Econometrics
Estimation methods
Food consumption
Household consumption
Household food consumption
Household size
Housing
Poverty
Poverty line
Statistical analysis
Studies
United States
United States economic conditions
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Summary:We show that subjective poverty lines can be derived using simple qualitative assessments of perceived consumption adequacy based on a household survey. We implement the method using survey data for Jamaica and Nepal. Respondents were asked whether their consumptions of food, housing, and clothing were adequate for their family's needs. The implied poverty lines are robust to alternative methods of dealing with other components of expenditure. The aggregate poverty rates accord quite closely with those based on independent "objective" poverty lines. However, there are notable differences in the geographic and demographic poverty profiles.
ISSN:0034-6535
1530-9142
DOI:10.1162/003465300558821