Poverty gap at dollar 3.65 a day (2017 PPP) (%)
Quick info | |
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Data type | Numeric |
Scale | Metric |
Value labels | Not applicable |
Technical name | socstr_povgap320_11_wb_new |
Category | Social structure |
Label | Poverty gap at dollar 3.65 a day (2017 PPP) (%) |
Related indicators |
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The "Poverty gap at dollar 3.65 a day (2017 PPP) (%)" measures the percentage of the population living on less than $3.65 a day, adjusted for 2017 international prices (in terms of 2017 purchasing power parity (PPP)). This poverty line reflects the value of national poverty lines in the world’s countries classified as lower-middle-income countries.
Coding rules
The variable measures the percentage of the population living on less than $3.65 a day, adjusted for 2017 international prices. Using the poverty threshold of less than $3.65 a day allows for the aggregation and comparison of poverty rates across countries, ensuring a consistent real standard of living is used in each case. PPP exchange rates are employed to estimate global poverty because they account for differences in prices between countries. However, PPP rates were designed primarily for comparing national accounts and may not be perfectly suited for international poverty comparisons. Consequently, the international poverty line may not reflect the same level of need or deprivation in every country it is applied to. To ensure consistent comparisons across countries with different poverty definitions, a common standard for measuring extreme poverty is defined, reflecting what poverty means in the lower-middle-income countries. Despite efforts to standardize the poverty line, comparability across countries remains challenging. Even similar surveys may not be directly comparable due to differences in timing, survey methods, or the quality and training of enumerators. Additionally, comparisons between countries at different levels of development may face difficulties, particularly due to the varying significance of non-market goods (such as home-grown food) in consumption. Although most surveys now include estimations for the value of own production, the methods for valuing such goods can vary, further complicating cross-country comparisons. Teorell et al. (2024:1579) define the variable as "Poverty gap at $3.65 a day (2017 PPP) is the mean shortfall in income or consumption from the poverty line $3.65 a day (counting the nonpoor as having zero shortfall), expressed as a percentage of the poverty line. This measure reflects the depth of poverty as well as its incidence."
Bibliographic info
Citation:- Teorell, Jan, Aksel Sundström, Sören Holmberg, Bo Rothstein, Natalia Alvarado Pachon, Cem Mert Dalli, Rafael Lopez Valverde & Paula Nilsson (2024). The Quality of Government Standard Dataset, version Jan24. University of Gothenburg: The Quality of Government Institute, https://www.gu.se/en/quality-government, doi:10.18157/qogstdjan24
- World Bank. (2023). World development indicators. The World Bank Washington DC. https://databank.worldbank.org/source/world-development-indicators
- Tetteh Baah, Samuel Kofi; Jolliffe, Dean Mitchell; Mahler, Daniel Gerszon; Lakner, Christoph; Atamanov, Aziz. (2022). Assessing the Impact of the 2017 PPPs on the International Poverty Line and Global Poverty. Policy Research Working Paper; 9941. Washington, DC: World Bank. http://hdl.handle.net/10986/37061 License: CC BY 3.0 IGO; at: https://openknowledge.worldbank.org/entities/publication/b7181197-311d-5721-9f84-bad27677e2f3
- World Bank. (2024). Poverty and Inequality Platform Methodology Handbook. Edition 2024-09. Available at https://datanalytics.worldbank.org/PIP-Methodology/
Misc
Project manager(s): Responsible for data editing, description (WESIS) and entry: Andrea Schäfer (2021-2025, Version 0.001); Principal Investigator: Irene Dingeldey, Ulrich Mückenberger
Data release:- Version 0.001: Initial release with data from The Quality of Government Standard Dataset, version January 2024
Revisions: No revisions yet
Sources
- Teorell, Jan and Sundström, Aksel and Holmberg, Sören and Rothstein, Bo and Alvarado Pachon, Natalia and Dalli, Cem Mert and Lopez Valvarde, Rafael and Nilsson, Paula (2024). The Quality of Government Standard Dataset, version Jan24. University of Gothenburg: The Quality of Government Institute, Available at: https://www.gu.se/en/quality-government/qog-data/data-downloads/standard-dataset
- World Bank. (2023). World development indicators. The World Bank Washington DC. https://databank.worldbank.org/source/world-development-indicators