Purchasing power parity exchange rates (PPPs) are used to estimate the international poverty line (IPL) in a common currency and account for relative price differences across countries when measuring global poverty. This paper assesses the impact of the 2017 PPPs on the nominal value of the IPL and global poverty. The analysis indicates that updating the $1.90 IPL in 2011 PPP dollars to 2017 PPP dollars results in an IPL of approximately $2.15—a finding that is robust to various methods and assumptions. Based on an updated IPL of $2.15, the global extreme poverty rate in 2017 falls from the previously estimated 9.3 to 9.1 percent, reducing the count of people who are poor by 15 million. This is a modest change compared with previous updates of PPP data. The paper also assesses the methodological stability between the 2011 and 2017 PPPs, scrutinizes large changes at the country level, and analyzes higher poverty lines with the 2017 PPPs.
Detalhes
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Autor
Jolliffe,Dean Mitchell, Mahler,Daniel Gerszon, Lakner,Christoph, Atamanov,Aziz, Tetteh Baah,Samuel Kofi
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Data do documento
2022/02/21
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TIpo de documento
Documento de trabalho sobre pesquisa de políticas
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No. do relatório
WPS9941
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Nº do volume
1
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Total Volume(s)
1
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País
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Região
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Data de divulgação
2022/02/21
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Disclosure Status
Disclosed
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Nome do documento
Assessing the Impact of the 2017 PPPs on the International Poverty Line and Global Poverty
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Palavras-chave
national poverty line; global poverty; Poverty and Equity; public-private partnership; household final consumption expenditure; purchasing power parity; Research Support; international poverty line; national poverty rate; median poverty line; market exchange rate; absolute poverty line; global poverty estimates; change in poverty; relative price difference; classification of expenditure; basket of good; high poverty line; value of inventory; bundle of goods; cumulative distribution function; poverty line approach; per capita term; analysis of poverty; extremely poor people; correlates of poverty; multidimensional poverty index; spatial price index; measurement of poverty; representative household surveys; consumer price index; household survey data; measuring global poverty; relative poverty line; regional poverty line; value of consumption; household consumption expenditure; measure of poverty; rural poverty line; global poverty measurement; extreme poverty; Learning and Innovation Credit
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