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Poverty is usually defined as a percentage on the income distribution. This may be useful in deciding who qualifies for aid, but is useless as a KPI. There will
by closeparen 7y ago
Poverty is usually defined as a percentage on the income distribution. This may be useful in deciding who qualifies for aid, but is useless as a KPI. There will always be 10% of the population in the bottom 10% of the population.
Inequality is defined as the difference in income between points on the distribution. Inequality can get worse, even as material conditions at the bottom get better, when growth accrues more quickly to the top. Inequality can also get better, even as conditions at the bottom decline, if conditions at the top are declining faster.
Absolute poverty would be the share of people living without some fixed level of material comfort (i.e. shelter). This is probably what we should focus on.
- tremon 7y agoWhere is poverty defined like that? I have always seen poverty defined as a function of the standard of living, not of income distribution.