What Is a Poverty Line Definition

National estimates are based on population-weighted subgroup estimates from household surveys. Definitions of the poverty line vary considerably from country to country. For example, rich countries generally apply more generous poverty standards than poor countries. Even between rich countries, standards vary widely. As a result, the figures are not comparable from one country to another. Even if nations use the same method, some problems may remain. [60] The term relative poverty can also be used in another sense to refer to “moderate poverty” – for example, a standard of living or income high enough to meet basic needs (such as water, food, clothing, housing, and basic health care), but still significantly lower than that of the majority of the population considered. An example of this could be a person who lives in poor conditions or poor housing in a high-crime area of a developed country and struggles to pay their bills each month due to low wages, debt or unemployment. Although this person still benefits from the infrastructure of the developed country, he still has a less than ideal lifestyle compared to his wealthier compatriots or even wealthier individuals from less developed countries who have a lower cost of living. [52] In 1978, Ghai reviewed the literature criticizing the basic needs approach. Critics have argued that the basic needs approach lacks scientific rigour; It was consumerist and anti-growth. Some saw it as “a recipe for keeping the economy behind” and giving the impression “that eradicating poverty is all too easy”.

[28] Amartya Sen focused on “skills” rather than consumption. The poverty line is the minimum amount a person needs to meet basic life needs such as shelter and food. If families live below the poverty line, they are eligible for government assistance. * The Census Bureau warns that the thresholds should be interpreted as a “statistical measure” rather than a complete calculation of the income people need to live. They should define and quantify poverty in America and capture changes in the number of individuals and families living in poverty and their characteristics over time. As its name suggests, the GPS complements, but does not replace, the official measure of poverty, which remains the country`s source for official poverty statistics and for determining eligibility for means-tested programs. (For more information on the use of poverty lines or their administrative counterpoint, poverty policies, determining eligibility for programs, see FAQ: What are poverty lines and poverty policies?) Charles Booth, a pioneer of poverty reduction in London at the turn of the 20th century, popularized the idea of a poverty line, a concept originally conceived by the London School Board. [13] Booth set the limit at 10 (50p) to 20 shillings (£1) per week, which he considered to be the minimum amount required for a family of four or five. [14] Benjamin Seebohm Rowntree (1871-1954), a British sociology researcher, social and industrial reformer, studied wealthy families in York and drew a poverty line in the form of a minimum weekly sum “necessary to provide for families.” to ensure the necessities of a healthy life,” which included fuel and lighting, rent, food, clothing, and household and personal items. Based on data from leading nutritionists at the time, he calculated the cheapest price for the minimum calorie intake and nutritional balance needed before people get sick or lose weight.

He considered this amount to be his poverty line and concluded that 27.84% of York`s total population lived below that poverty line. [15] This conclusion was consistent with that of Booth`s study of poverty in London, challenging the prevailing view at the time that abject poverty was a problem specific to London and was not prevalent in the rest of Britain. Rowntree distinguished between primary poverty, low income and secondary poverty, those who had sufficient income but spent it elsewhere (1901: 295-96). [15] Living income refers to the income necessary to afford a decent standard of living where one lives.