On the Estimation of an Absolute Poverty Line: An Empirical Appraisal

Abstract

The fad that different studies seeking to measure poverty in a given country often give differing results, although they apparently use the same method and same data source, has long disconcerted both experts in the field and the public in general. Such differences regarding poverty incidences reduce the credibility and technical reliability of these measurements, shed doubts on estimates of the level and evolution of poverty, and hinders inter-temporal comparisons. That is why it is important to foster greater consensus among researchers regarding the criteria and procedure to be used, with a view to progressing towards a common pattern, which will make the measurements more consistent and homogeneous, and guarantee their effective comparability. This policy paper provides a recommended strategy for estimating an absolute poverty line using household survey data of the years 1987-88, 1996-97 and 1998.