Poverty gap at dollar 3.65 a day (2017 PPP) (%)

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Quick info
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

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: Related publications:

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