Poverty Measurement — Definition

Definition

Poverty measurement identifies deprivation through an explicit rule, such as consumption below a monetary threshold or a weighted combination of shortfalls in health, education and living conditions. Different measures answer different questions.

A headcount ratio counts the share classified as poor, while depth or intensity measures capture aspects of how deprived they are. India's national Multidimensional Poverty Index combines incidence and average intensity among the poor.

Sound comparison requires a consistent definition, observation period and population. A projected estimate, a survey observation and an internationally comparable monetary line should therefore be labelled distinctly rather than treated as interchangeable poverty percentages.