Poverty threshold - Wikipedia

In the United States, the poverty thresholds are updated every year by Census Bureau. The threshold in the United States is updated and used for statistical ... Povertythreshold FromWikipedia,thefreeencyclopedia Jumptonavigation Jumptosearch Minimumincomedeemedadequatetoliveinaspecificcountryorplace TheexamplesandperspectiveinthisarticledealprimarilywiththeUnitedStatesanddonotrepresentaworldwideviewofthesubject.Youmayimprovethisarticle,discusstheissueonthetalkpage,orcreateanewarticle,asappropriate.(April2019)(Learnhowandwhentoremovethistemplatemessage) Graphofglobalpopulationlivingonunder1,1.25and2equivalentof2005USdollarsdaily(red)andasaproportionofworldpopulation(blue)basedon1981–2008WorldBankdata PovertyThresholdsfor2013 Thepovertythreshold,povertylimit,povertylineorbreadline[1]istheminimumlevelofincomedeemedadequateinaparticularcountry.[2]Thepovertylineisusuallycalculatedbyfindingthetotalcostofalltheessentialresourcesthatanaveragehumanadultconsumesinoneyear.[3]Thelargestoftheseexpensesistypicallytherentrequiredforaccommodation,sohistorically,economistshavepaidparticularattentiontotherealestatemarketandhousingpricesasastrongpovertylineaffect.[4]Individualfactorsareoftenusedtoaccountforvariouscircumstances,suchaswhetheroneisaparent,elderly,achild,married,etc.Thepovertythresholdmaybeadjustedannually.Inpractice,likethedefinitionofpoverty,theofficialorcommonunderstandingofthepovertylineissignificantlyhigherindevelopedcountriesthanindevelopingcountries.[5][6] InOctober2015,theWorldBankupdatedtheInternationalPovertyLine(IPL),aglobalabsoluteminimum,to$1.90perday[7](inPPP),[8]whereitcurrentstands(asof2022),[9]andalsoasof2022,$3.20perdayinPPPforlower-middleincomecountries,and$5.50perdayinPPPforupper-middleincomecountries.[8][9]Perthe$1.90/daystandard,thepercentageoftheglobalpopulationlivinginabsolutepovertyfellfromover80%in1800to10%by2015,accordingtoUnitedNationsestimates,whichfoundroughly734millionpeopleremainedinabsolutepoverty.[10][11] Contents 1History 2AbsolutepovertyandtheInternationalPovertyLine 2.1Basicneeds 3Relativepoverty 3.1Historyoftheconceptofrelativepoverty 3.2Relativepovertycomparedwithotherstandards 3.3LivingIncomeConcept 4Whypovertythresholdmatters 5Thresholdlimitations 6Nationalpovertylines 6.1UnitedKingdom 6.2India 6.3Singapore 6.4UnitedStates 6.4.1Womenandchildren 6.4.2Racialminorities 6.4.3Impactsoneducation 6.4.4Impactsonhealthcare 6.4.5Povertymobilityandhealthcare 6.4.6Povertydynamics 6.4.7Cutoffissues 6.4.7.1Variability 6.4.8Governmenttransferstoalleviatepoverty 7Seealso 8References 9Furtherreading 10Externallinks History[edit] ThepovertythresholdwasfirstdevelopedbyMollieOrshanskybetween1963and1964.Sheattributedthepovertythresholdasameasureofincomeinadequacybytakingthecostoffoodplanperfamilyofthreeorfourandmultiplyingitbyafactorofthree.In1969theinteragencypovertylevelreviewcommitteeadjustedthethresholdforonlypricechanges.[12] CharlesBooth,apioneeringinvestigatorofpovertyinLondonattheturnofthe20thcentury,popularisedtheideaofapovertyline,aconceptoriginallyconceivedbytheLondonSchoolBoard.[13]Boothsetthelineat10 (50p)to20shillings (£1)perweek,whichheconsideredtobetheminimumamountnecessaryforafamilyoffourorfivepeopletosubsiston.[14]BenjaminSeebohmRowntree(1871–1954),aBritishsociologicalresearcher,socialreformerandindustrialist,surveyedrichfamiliesinYork,anddrewapovertylineintermsofaminimumweeklysumofmoney"necessarytoenablefamilies …tosecurethenecessariesofahealthylife",whichincludedfuelandlight,rent,food,clothing,andhouseholdandpersonalitems.Basedondatafromleadingnutritionistsoftheperiod,hecalculatedthecheapestpricefortheminimumcalorificintakeandnutritionalbalancenecessary,beforepeoplegetillorloseweight.Heconsideredthisamounttosethispovertylineandconcludedthat27.84%ofthetotalpopulationofYorklivedbelowthispovertyline.[15]ThisresultcorrespondedwiththatfromBooth'sstudyofpovertyinLondonandsochallengedtheview,commonlyheldatthetime,thatabjectpovertywasaproblemparticulartoLondonandwasnotwidespreadintherestofBritain.Rowntreedistinguishedbetweenprimarypoverty,thoselackinginincomeandsecondarypoverty,thosewhohadenoughincome,butspentitelsewhere(1901:295–96).[15] AbsolutepovertyandtheInternationalPovertyLine[edit] Seealso:Extremepoverty Theterm"absolutepoverty"isalsosometimesusedasasynonymforextremepoverty.Absolutepovertyistheabsenceofenoughresourcestosecurebasiclifenecessities. Povertyheadcountratioat$1.90aday(2011PPP)(%ofpopulation).BasedonWorldBankdatarangingfrom1998to2018.[16] Toassistinmeasuringthis,theWorldBankhasadailypercapitainternationalpovertyline(IPL),aglobalabsoluteminimum,of$1.90adayasofOctober2015.[17] ThenewIPLreplacesthe$1.25perdayfigure,whichused2005data.[18]In2008,theWorldBankcameoutwithafigure(revisedlargelyduetoinflation)of$1.25adayat2005purchasingpowerparity(PPP).[19]Thenewfigureof$1.90isbasedonICPPPPcalculationsandrepresentstheinternationalequivalentofwhat$1.90couldbuyintheUSin2011.Mostscholarsagreethatitbetterreflectstoday'sreality,particularlynewpricelevelsindevelopingcountries.[20]ThecommonIPLhasinthepastbeenroughly$1aday.[21] ThesefiguresareartificiallylowaccordingtoPeterEdwardofNewcastleUniversity.Hebelievestherealnumberasof2015was$7.40perday.[22] Usingasinglemonetarypovertythresholdisproblematicwhenappliedworldwide,duetothedifficultyofcomparingpricesbetweencountries.[citationneeded]Pricesofthesamegoodsvarydramaticallyfromcountrytocountry;whilethisistypicallycorrectedforbyusingPPPexchangerates,thebasketofgoodsusedtodeterminesuchratesisusuallyunrepresentativeofthepoor,mostofwhoseexpenditureisonbasicfoodstuffsratherthantherelativelyluxuriousitems(washingmachines,airtravel,healthcare)oftenincludedinPPPbaskets.TheeconomistRobertC.Allenhasattemptedtosolvethisbyusingstandardizedbasketsofgoodstypicalofthoseboughtbythepooracrosscountriesandhistoricaltime,forexampleincludingafixedcalorificquantityofthecheapestlocalgrain(suchascorn,rice,oroats).[23] Basicneeds[edit] Seealso:Basicneeds Thebasicneedsapproachisoneofthemajorapproachestothemeasurementofabsolutepovertyindevelopingcountries.Itattemptstodefinetheabsoluteminimumresourcesnecessaryforlong-termphysicalwell-being,usuallyintermsofconsumptiongoods.Thepovertylineisthendefinedastheamountofincomerequiredtosatisfythoseneeds.The'basicneeds'approachwasintroducedbytheInternationalLabourOrganization'sWorldEmploymentConferencein1976.[24][25]"PerhapsthehighpointoftheWEPwastheWorldEmploymentConferenceof1976,whichproposedthesatisfactionofbasichumanneedsastheoverridingobjectiveofnationalandinternationaldevelopmentpolicy.Thebasicneedsapproachtodevelopmentwasendorsedbygovernmentsandworkers'andemployers'organizationsfromallovertheworld.Itinfluencedtheprogramsandpoliciesofmajormultilateralandbilateraldevelopmentagencies,andwastheprecursortothehumandevelopmentapproach."[24][25] Atraditionallistofimmediate"basicneeds"isfood(includingwater),shelter,andclothing.[26]Manymodernlistsemphasizetheminimumlevelofconsumptionof'basicneeds'ofnotjustfood,water,andshelter,butalsosanitation,education,andhealthcare.Differentagenciesusedifferentlists. AccordingtoaUNdeclarationthatresultedfromtheWorldSummitonSocialDevelopmentinCopenhagenin1995,absolutepovertyis"aconditioncharacterizedbyseveredeprivationofbasichumanneeds,includingfood,safedrinkingwater,sanitationfacilities,health,shelter,education,andinformation.Itdependsnotonlyonincome,butalsoonaccesstoservices."[27] DavidGordon'spaper,"IndicatorsofPovertyandHunger",fortheUnitedNations,furtherdefinesabsolutepovertyastheabsenceofanytwoofthefollowingeightbasicneeds:[27] Ahomelessmanseeksshelterunderapublicbench Food:Bodymassindexmustbeabove16. Safedrinkingwater:Watermustnotcomesolelyfromriversandponds,andmustbeavailablenearby(fewerthan15minutes'walkeachway). Sanitationfacilities:Toiletsorlatrinesmustbeaccessibleinornearthehome. Health:Treatmentmustbereceivedforseriousillnessesandpregnancy. Shelter:Homesmusthavefewerthanfourpeoplelivingineachroom.Floorsmustnotbemadeofsoil,mud,orclay. Education:Everyonemustattendschoolorotherwiselearntoread. Information:Everyonemusthaveaccesstonewspapers,radios,televisions,computers,ortelephonesathome. Accesstoservices:ThisitemisundefinedbyGordon,butnormallyisusedtoindicatethecompletepanoplyofeducation,health,legal,social,andfinancial(credit)services. In1978,Ghaiinvestigatedtheliteraturethatcriticizedthebasicneedsapproach.Criticsarguedthatthebasicneedsapproachlackedscientificrigour;itwasconsumption-orientedandantigrowth.Someconsideredittobe"arecipeforperpetuatingeconomicbackwardness"andforgivingtheimpression"thatpovertyeliminationisalltooeasy".[28]AmartyaSenfocusedon'capabilities'ratherthanconsumption. Inthedevelopmentdiscourse,thebasicneedsmodelfocusesonthemeasurementofwhatisbelievedtobeaneradicablelevelofpoverty. Relativepoverty[edit] Seealso:EconomicinequalityandRelativedeprivation IthasbeensuggestedthatthissectionbesplitoutintoanotherarticletitledRelativepoverty.(Discuss)(September2020) Relativepovertymeanslowincomerelativetoothersinacountry:[29]forexample,below60%ofthemedianincomeofpeopleinthatcountry. Relativepovertymeasurementsunlikeabsolutepovertymeasurementstakethesocialeconomicenvironmentofthepeopleobservedintoconsideration.Itisbasedontheassumptionthatwhetherapersonisconsideredpoordependsonher/hisincomesharerelativetotheincomesharesofotherpeoplewhoarelivinginthesameeconomy.[29]Thethresholdforrelativepovertyisconsideredtobeat50%ofacountry'smedianequivaliseddisposableincomeaftersocialtransfers.Thus,itcanvarygreatlyfromcountrytocountryevenafteradjustingforpurchasingpowerstandards(PPS).[30] Apersoncanbepoorinarelativetermsbutnotinabsolutetermsasthepersonmightbeabletomeether/hisbasicneeds,butnotbeabletoenjoythesamestandardsoflivingthatotherpeopleinthesameeconomyareenjoying.[31]Relativepovertyisthusaformofsocialexclusionthatcanforexampleaffectpeoplesaccesstodecenthousing,educationorjobopportunities.[31] TherelativepovertymeasureisusedbytheUnitedNationsDevelopmentProgram(UNDP),theUnitedNationsChildren'sFund(UNICEF),theOrganisationforEconomicCo-operationandDevelopment(OECD)andCanadianpovertyresearchers.[32][33][34][35][36]IntheEuropeanUnion,the"relativepovertymeasureisthemostprominentandmost–quotedoftheEUsocialinclusionindicators."[37] "Relativepovertyreflectsbetterthecostofsocialinclusionandequalityofopportunityinaspecifictimeandspace."[38] "Onceeconomicdevelopmenthasprogressedbeyondacertainminimumlevel,therubofthepovertyproblem –fromthepointofviewofboththepoorindividualandofthesocietiesinwhichtheylive –isnotsomuchtheeffectsofpovertyinanyabsoluteformbuttheeffectsofthecontrast,dailyperceived,betweenthelivesofthepoorandthelivesofthosearoundthem.Forpracticalpurposes,theproblemofpovertyintheindustrializednationstodayisaproblemofrelativepoverty(page9)."[38][39] However,some[who?]havearguedthatasrelativepovertyismerelyameasureofinequality,usingtheterm'poverty'foritismisleading.Forexample,ifeveryoneinacountry'sincomedoubled,itwouldnotreducetheamountof'relativepoverty'atall. Historyoftheconceptofrelativepoverty[edit] In1776,AdamSmitharguedthatpovertyistheinabilitytoafford"notonlythecommoditieswhichareindispensablynecessaryforthesupportoflife,butwhateverthecustomofthecountryrendersitindecentforcreditablepeople,evenofthelowestorder,tobewithout."[40][41] In1958,JohnKennethGalbraithargued,"Peoplearepovertystrickenwhentheirincome,evenifadequateforsurvival,fallsmarkedlybehindthatoftheircommunity."[41][42] In1964,inajointcommitteeeconomicPresident'sreportintheUnitedStates,Republicansendorsedtheconceptofrelativepoverty:"Noobjectivedefinitionofpovertyexists....Thedefinitionvariesfromplacetoplaceandtimetotime.InAmericaasourstandardoflivingrises,sodoesourideaofwhatissubstandard."[41][43] In1965,RoseFriedmanarguedfortheuseofrelativepovertyclaimingthatthedefinitionofpovertychangeswithgenerallivingstandards.Thoselabelledaspoorin1995,wouldhavehad"ahigherstandardoflivingthanmanylabellednotpoor"in1965.[41][44] In1967,AmericaneconomistVictorFuchsproposedthat"wedefineaspooranyfamilywhoseincomeislessthanone-halfthemedianfamilyincome."[45]Thiswasthefirstintroductionoftherelativepovertyrateastypicallycomputedtoday[46][47] In1979,Britishsociologist,PeterTownsendpublishedhisfamousdefinition:"individuals...canbesaidtobeinpovertywhentheylacktheresourcestoobtainthetypesofdiet,participateintheactivitiesandhavethelivingconditionsandamenitieswhicharecustomary,orareatleastwidelyencouragedorapproved,inthesocietiestowhichtheybelong(page31)."[48] BrianNolanandChristopherT.WhelanoftheEconomicandSocialResearchInstitute(ESRI)inIrelandexplainedthat"povertyhastobeseenintermsofthestandardoflivingofthesocietyinquestion."[49] RelativepovertymeasuresareusedasofficialpovertyratesbytheEuropeanUnion,UNICEFandtheOECD.ThemainpovertylineusedintheOECDandtheEuropeanUnionisbasedon"economicdistance",alevelofincomesetat60%ofthemedianhouseholdincome.[50] Relativepovertycomparedwithotherstandards[edit] Ameasureofrelativepovertydefines"poverty"asbeingbelowsomerelativepovertythreshold.Forexample,thestatementthat"thoseindividualswhoareemployedandwhosehouseholdequivaliseddisposableincomeisbelow60%ofnationalmedianequivalisedincomearepoor"usesarelativemeasuretodefinepoverty.[51] Thetermrelativepovertycanalsobeusedinadifferentsensetomean"moderatepoverty" –forexample,astandardoflivingorlevelofincomethatishighenoughtosatisfybasicneeds(likewater,food,clothing,housing,andbasichealthcare),butstillsignificantlylowerthanthatofthemajorityofthepopulationunderconsideration. Anexampleofthiscouldbeapersonlivinginpoorconditionsorsqualidhousinginahighcrimeareaofadevelopedcountryandstrugglingtopaytheirbillseverymonthduetolowwages,debtorunemployment.Whilethispersonstillbenefitsfromtheinfrastructureofthedevelopedcountry,theystillendurealessthanideallifestylecomparedtotheirmoreaffluentcountrymenoreventhemoreaffluentindividualsinlessdevelopedcountrieswhohavelowerlivingcosts.[52] LivingIncomeConcept[edit] LivingIncomereferstotheincomeneededtoaffordadecentstandardoflivingintheplaceonelives.Thedistinguishingfeaturebetweenalivingincomeandthepovertylineistheconceptofdecency,whereinpeoplethrive,notonlysurvive.Basedonyearsofstakeholderdialogueandexpertconsultations,theLivingIncomeCommunityofPractice,anopenlearningcommunity,establishedtheformaldefinitionoflivingincomedrawingontheworkofRichardandMarthaAnker,whoco-authored"LivingWagesAroundtheWorld:ManualforMeasurement".Theydefinealivingincomeas:[53]Thenetannualincomerequiredforahouseholdinaparticularplacetoaffordadecentstandardoflivingforallmembersofthathousehold.Elementsofadecentstandardoflivingincludefood,water,housing,education,healthcare,transport,clothing,andotheressentialneedsincludingprovisionforunexpectedevents.Likethepovertylinecalculation,usingasingleglobalmonetarycalculationforLivingIncomeisproblematicwhenappliedworldwide.[54]Additionally,theLivingIncomeshouldbeadjustedquarterlyduetoinflationandothersignificantchangessuchascurrencyadjustments.[53]Theactualincomeorproxyincomecanbeusedwhenmeasuringthegapbetweeninitialincomeandthelivingincomebenchmarks.TheWorldBanknotesthatpovertyandstandardoflivingcanbemeasuredbysocialperceptionaswell,andfoundthatin2015,roughlyone-thirdoftheworld'spopulationwasconsideredpoorinrelationtotheirparticularsociety.[55] TheLivingIncomeCommunityofPractice(LICOP)wasfoundedbyTheSustainableFoodLab,GIZandISEALAlliancetomeasurethegapbetweenwhatpeoplearoundtheworldearnversuswhattheyneedtohaveadecentstandardofliving,andfindwaystobridgethisgap.[53] AvariationontheLICOP'sLivingIncomeistheMassachusettsInstituteofTechnology'sLivingWageCalculator,whichcomparesthelocalminimumwagetotheamountofmoneyneededtocoverexpensesbeyondwhatisneededtomerelysurviveacrosstheUnitedStates.[56]Thecostoflivingvariesgreatlyiftherearechildrenorotherdependentsinthehousehold. Whypovertythresholdmatters[edit] Anoutdatedorflawedpovertymeasureisanobstacleforpolicymakers,researchersandacademicstryingtofindsolutionstotheproblemofpoverty.Thishasimplicationsforpeople.Thefederalpovertylineisusedbydozensoffederal,state,andlocalagencies,aswellasseveralprivateorganizationsandcharities,todecidewhoneedsassistance.Theassistancecantakemanyforms,butitisoftendifficulttoputinplaceanytypeofaidwithoutmeasurementswhichprovidedata.Inarapidlyevolvingeconomicclimate,povertyassessmentoftenaidsdevelopedcountriesindeterminingtheefficacyoftheirprogramsandguidingtheirdevelopmentstrategy.Inaddition,bymeasuringpovertyonereceivesknowledgeofwhichpovertyreductionstrategiesworkandwhichdonot,[57]helpingtoevaluatedifferentprojects,policiesandinstitutions.Toalargeextent,measuringthepoorandhavingstrategiestodosokeepthepoorontheagenda,makingtheproblemofpoliticalandmoralconcern. Thresholdlimitations[edit] Itishardtohaveexactnumberforpoverty,asmuchdataiscollectedthroughinterviews,meaningincomethatisreportedtotheinterviewermustbetakenatfacevalue.[58]Asaresult,datacouldnotrightlyrepresentthesituationstruenature,norfullyrepresenttheincomeearnedillegally.Inaddition,ifthedatawerecorrectandaccurate,itwouldstillnotmeanservingasanadequatemeasureofthelivingstandards,thewell-beingoreconomicpositionofagivenfamilyorhousehold.ResearchdonebyHaughtonandKhandker[59]findsthatthereisnoidealmeasureofwell-being,arguingthatallmeasuresofpovertyareimperfect.Thatisnottosaythatmeasuringpovertyshouldbeavoided;rather,allindicatorsofpovertyshouldbeapproachedwithcaution,andquestionsabouthowtheyareformulatedshouldberaised. Asaresult,dependingontheindicatorofeconomicstatusused,anestimateofwhoisdisadvantaged,whichgroupshavethehighestpovertyrates,andthenation'sprogressagainstpovertyvariessignificantly.Hence,thiscanmeanthatdefiningpovertyisnotjustamatterofmeasuringthingsaccurately,butitalsonecessitatesfundamentalsocialjudgments,manyofwhichhavemoralimplications. Nationalpovertylines[edit] 2008CIAWorldFactbook-basedmapshowingthepercentageofpopulationbycountrylivingbelowthatcountry'sofficialpovertyline Nationalestimatesarebasedonpopulation-weightedsubgroupestimatesfromhouseholdsurveys.Definitionsofthepovertylinedovaryconsiderablyamongnations.Forexample,richnationsgenerallyemploymoregenerousstandardsofpovertythanpoornations.Evenamongrichnations,thestandardsdiffergreatly.Thus,thenumbersarenotcomparableamongcountries.Evenwhennationsdousethesamemethod,someissuesmayremain.[60] UnitedKingdom[edit] IntheUKin2006,"morethanfivemillionpeople –overafifth(23percent)ofallemployees –werepaidlessthan£6.67anhour".Thisvalueisbasedonalowpayrateof60percentoffull-timemedianearnings,equivalenttoalittleover£12,000ayearfora35-hourworkingweek.InApril2006,a35-hourweekwouldhaveearnedsomeone£9,191ayear –beforetaxorNationalInsurance".[61][62] In2019,theLowPayCommissionestimatedthatabout7%ofpeopleemployedintheUKwereearningatorbelowtheNationalMinimumWage.[63]In2021,theOfficeforNationalStatisticsfoundthat3.8%ofjobswerepaidbelowtheNationalMinimumWage,adecreasefrom7.4%in2020butanincreasefrom1.4%in2019.[64]Theynotethatthisincreasefrom2019to2021isconnectedtotheCOVID-19pandemicintheUnitedKingdom.[64]TheGuardianreportedin2021that"almost5mjobs,oroneinsixnationally,paybelowthereallivingwage".[65] India[edit] India'sofficialpovertylevelasof2005[update]issplitaccordingtoruralversusurbanthresholds.Forurbandwellers,thepovertylineisdefinedaslivingonlessthan538.60rupees(approximatelyUS$12)permonth,whereasforruraldwellers,itisdefinedaslivingonlessthan356.35rupeespermonth(approximatelyUS$7.50).[66]In2019,theIndiangovernmentstatedthat6.7%ofitspopulationisbelowitsofficialpovertylimit.AsIndiaisoneofthefastest-growingeconomiesin2018,povertyisonthedeclineinthecountry,withcloseto44Indiansescapingextremepovertyeveryminute,aspertheWorldPovertyClock.Indialifted271millionpeopleoutofpovertyina10-yeartimeperiodfrom2005/06to2015/16.[67] Singapore[edit] Singaporehasexperiencedstrongeconomicgrowthoverthelasttenyearsandhasconsistentlyrankedamongtheworld'stopcountriesintermsofGDPpercapita. Inequalityhashoweverincreaseddramaticallyoverthesametimespan,yetthereisnoofficialpovertylineinthecountry.GivenSingapore'shighlevelofgrowthandprosperity,manybelievethatpovertydoesnotexistinthecountry,orthatdomesticpovertyisnotcomparabletoglobalabsolutepoverty.Suchaviewpersistsforaselectionofreasons,andsincethereisnoofficialpovertyline,thereisnostrongacknowledgementthatitexists.[68] Yet,Singaporeisnotconsideringestablishinganofficialpovertyline,withMinisterforSocialandFamilyDevelopmentChanChunSingclaimingitwouldfailtorepresentthemagnitudeandscopeofproblemsfacedbythepoor.Asaresult,socialbenefitsandaidsaimedatthepoorwouldbeamissedopportunityforthoselivingrightabovesuchaline.[69]PovertyratemapofIndiabyprevalencein2012,amongitsstatesandunionterritories Acomparativemapofpovertyintheworldin2012,atnationalpovertyline,accordingtotheWorldBank UnitedStates[edit] IntheUnitedStates,thepovertythresholdsareupdatedeveryyearbyCensusBureau.ThethresholdintheUnitedStatesisupdatedandusedforstatisticalpurposes.In2020,intheUnitedStates,thepovertythresholdforasinglepersonunder65wasanannualincomeofUS$12,760,orabout$35perday.Thethresholdforafamilygroupoffour,includingtwochildren,wasUS$26,200,about$72perday.[70]AccordingtotheUSCensusBureau'sAmericanCommunitySurvey2018One-yearEstimates,13.1%ofAmericanslivedbelowthepovertyline.[71] Womenandchildren[edit] StreetchildreninCebu,Philippines Womenandchildrenfindthemselvesimpactedbypovertymoreoftenwhenapartofsinglemotherfamilies.[72]Thepovertyrateofwomenhasincreasinglyexceededthatofmen's.[73]Whiletheoverallpovertyrateis12.3%,womenpovertyrateis13.8%whichisabovetheaverageandmenarebelowtheoverallrateat11.1%.[74][72]Womenandchildren(assinglemotherfamilies)findthemselvesasapartoflowclasscommunitiesbecausetheyare21.6%morelikelytofallintopoverty.[75]However,extremepoverty,suchashomelessness,disproportionatelyaffectsmalestoahighdegree.[76] Racialminorities[edit] Aminoritygroupisdefinedas"acategoryofpeoplewhoexperiencerelativedisadvantageascomparedtomembersofadominantsocialgroup."[77]Minoritiesaretraditionallyseparatedintothefollowinggroups:AfricanAmericans,AmericanIndians,AlaskaNatives,Asians,PacificIslanders,andHispanics.[78]AccordingtothecurrentUSPovertystatistics,BlackAmericans –21%,Foreignbornnon-citizens –19%,HispanicAmericans –18%,andadultswithadisability –25%.[79]Thisdoesnotincludeallminoritygroups,butthesegroupsaloneaccountfor85%ofpeopleunderthepovertylineintheUnitedStates.[80]Whiteshaveapovertyrateof8.7%;thepovertyrateismorethandoubleforBlackandHispanicAmericans.[81] Impactsoneducation[edit] Livingbelowthepovertythresholdcanhaveamajorimpactonachild'seducation.[82]Thepsychologicalstressesinducedbypovertymayaffectastudent'sabilitytoperformwellacademically.[82]Inaddition,theriskofpoorhealthismoreprevalentforthoselivinginpoverty.[82]Healthissuescommonlyaffecttheextenttowhichonecancontinueandfullytakeadvantageofhisorhereducation.[82]PoorstudentsintheUnitedStatesaremorelikelytodropoutofschoolatsomepointintheireducation.[82]Researchhasalsofoundthatchildrenlivinginpovertyperformpoorlyacademicallyandhavelowergraduationrates.[82]Impoverishedchildrenalsoexperiencemoredisciplinaryissuesinschoolthanothers.[82] Schoolsinimpoverishedcommunitiesusuallydonotreceivemuchfunding,whichcanalsosettheirstudentsapartfromthoselivinginmoreaffluentneighborhoods.[82]Thereismuchdisputeoverwhetherupwardmobilitythatbringsachildoutofpovertymayormaynothaveasignificantpositiveimpactonhisorhereducation;inadequateacademichabitsthatformasearlyaspreschooltypicallyareunknowntoimprovedespitechangesinsocioeconomicstatus.[82] Impactsonhealthcare[edit] Thenation'spovertythresholdisissuedbytheCensusBureau.[83]AccordingtotheOfficeofAssistantSecretaryforPlanningandEvaluationthethresholdisstatisticallyrelevantandcanbeasolidpredictorofpeopleinpoverty.[83]ThereasoningforusingFederalPovertyLevel(FPL)isduetoitsactionfordistributivepurposesunderthedirectionofHealthandHumanServices.SoFPLisatoolderivedfromthethresholdbutcanbeusedtoshoweligibilityforcertainfederalprograms.[83]Federalpovertylevelshavedirecteffectsonindividuals'healthcare.Inthepastyearsandintothepresentgovernment,theuseofthepovertythresholdhasconsequencesforsuchprogramslikeMedicaidandtheChildren'sHealthInsuranceProgram.[84] ThebenefitswhichdifferentfamiliesareeligibleforarecontingentonFPL.TheFPL,inturn,iscalculatedbasedonfederalnumbersfromthepreviousyear.[84] Thebenefitsandqualificationsforfederalprogramsaredependentonnumberofpeopleonaplanandtheincomeofthetotalgroup.[84]For2019,theU.SDepartmentofhealth&HumanServicesenumeratewhatthelineisfordifferentfamilies.Forasingleperson,thelineis$12,490andupto$43,430forafamilyof8,inthelower48states.[83]Anotherissueisreduced-costcoverage.ThesereductionsarebasedonincomerelativetoFPL,andworkinconnectionwithpublichealthservicessuchasMedicaid.[85]ThedivisionsofFPLpercentagesarenominally,above400%,below138%andbelow100%oftheFPL.[85]AftertheadventoftheAmericanCareAct,Medicaidwasexpandedonstatesbases.[85]Forexample,enrollingintheACAkeptthebenefitsofMedicaidwhentheincomewasupto138%oftheFPL.[85] DepartmentofHealth&HumanServicesSeal Povertymobilityandhealthcare[edit] HealthAffairsalongwithanalysisbyGeorgetownfoundthatpublicassistancedoescounteractpovertythreatsbetween2010and2015.[86]InregardstoMedicaid,childpovertyisdecreasedby5.3%,andHispanicandBlackpovertyby6.1%and4.9%respectively.[86]ThereductionoffamilypovertyalsohasthehighestdecreasewithMedicaidoverotherpublicassistanceprograms.[86]ExpandingstateMedicaiddecreasedtheamountindividualspaidbyanaverageof$42,whileitincreasedthecoststo$326forpeoplenotinexpandedstates.Thesamestudyanalyzedshowed2.6millionpeoplewerekeptoutofpovertybytheeffectsofMedicaid.[86]Froma2013–2015study,expansionstatesshowedasmallergapinhealthinsurancebetweenhouseholdsmakingbelow$25,000andabove$75,000.[87]Expansionalsosignificantlyreducedthegapofhavingaprimarycarephysicianbetweenimpoverishedandhigherincomeindividuals.[87]Intermsofeducationlevelandemployment,healthinsurancedifferenceswerealsoreduced.[87]Non-expansionalsoshowedpoorresidentswentfroma22%chanceofbeinguninsuredto66%from2013to2015.[87] Povertydynamics[edit] Livingaboveorbelowthepovertythresholdisnotnecessarilyapositioninwhichanindividualremainsstatic.[88]Asmanyasoneinthreeimpoverishedpeoplewerenotpooratbirth;rather,theydescendedintopovertyoverthecourseoftheirlife.[82]Additionally,astudywhichanalyzeddatafromthePanelStudyofIncomeDynamics(PSID)foundthatnearly40%of20-year-oldsreceivedfoodstampsatsomepointbeforetheyturned65.[89]ThisindicatesthatmanyAmericanswilldipbelowthepovertylinesometimeduringadulthood,butwillnotnecessarilyremaintherefortherestoftheirlife.[89]Furthermore,44%ofindividualswhoaregiventransferbenefits(otherthanSocialSecurity)inoneyeardonotreceivethemthenext.[88]Over90%ofAmericanswhoreceivetransfersfromthegovernmentstopreceivingthemwithin10years,indicatingthatthepopulationlivingbelowthepovertythresholdisinfluxanddoesnotremainconstant.[88] Cutoffissues[edit] MostexpertsandthepublicagreethattheofficialpovertylineintheUnitedStatesissubstantiallylowerthantheactualcostofbasicneeds.Inparticular,a2017UrbanInstitutestudyfoundthat61%ofnon-elderlyadultsearningbetween100and200%ofthepovertylinereportedatleastonematerialhardship,notsignificantlydifferentfromthosebelowthepovertyline.Thecauseofthediscrepancyisbelievedtobeanoutdatedmodelofspendingpatternsbasedonactualspendingintheyear1955;thenumberandproportionofmaterialneedshasrisensubstantiallysincethen. Variability[edit] TheUSCensusBureaucalculatesthepovertylinethesamethroughouttheUSregardlessofthecost-of-livinginastateorurbanarea.Forinstance,thecost-of-livinginCalifornia,themostpopulousstate,was42%greaterthantheUSaveragein2010,whilethecost-of-livinginTexas,thesecond-mostpopulousstate,was10%lessthantheUSaverage.[citationneeded]In2017,Californiahadthehighestpovertyrateinthecountrywhenhousingcostsarefactoredin,ameasurecalculatedbytheCensusBureauknownas"thesupplementalpovertymeasure".[90] Governmenttransferstoalleviatepoverty[edit] Inadditiontowageandsalaryincome,investmentincomeandgovernmenttransferssuchasSNAP(SupplementalNutritionAssistanceProgram,alsoknownasfoodstamps)andhousingsubsidiesareincludedinahousehold'sincome.Studiesmeasuringthedifferencesbetweenincomebeforeandaftertaxesandgovernmenttransfers,havefoundthatwithoutsocialsupportprograms,povertywouldberoughly30%to40%higherthantheofficialpovertylineindicates.[91][92] Seealso[edit] Assetpoverty Incomedeficit Listofcountriesbypercentageofpopulationlivinginpoverty Livingwage Measuringpoverty Poorperson UNMillenniumDevelopmentGoals SustainableDevelopmentGoal1 References[edit] ^webster,Thebreadline."Thebreadline". ^Ravallion,MartinPovertyfreak:AGuidetoConceptsandMethods.LivingStandardsMeasurementPapers,TheWorld ^PovertyLines–MartinRavallion,inTheNewPalgraveDictionaryofEconomics,2ndEdition,London:PalgraveMacmillan ^Chassagnon,A(2019)."Efficiencyandequity"(PDF).ParisSchoolofEconomics. ^Hagenaars,Aldi&deVos,KlaasTheDefinitionandMeasurementofPoverty.JournalofHumanResources,1988 ^Hagenaars,Aldi&vanPraag,BernardASynthesisofPovertyLineDefinitions.ReviewofIncomeandWealth,1985 ^"WorldBank".TheWorldBank.Retrieved17June2019. ^ab"WorldBank2022povertylines".Retrieved10January2022. ^ab"2022WorldBankpovertylines".Retrieved10January2022. ^"PovcalNet".iresearch.worldbank.org.Retrieved10March2019. ^Beauchamp,Zach(14December2014)."Theworld'svictoryoverextremepoverty,inonechart".Vox.Retrieved17June2019. ^"Historyofpovertythresholds". ^Gillie,Alan(1996)."TheOriginofthePovertyLine".EconomicHistoryReview.49(4):715–730[p.726].doi:10.2307/2597970.JSTOR 2597970. ^Boyle,David(2000).TheTyrannyofNumbers.p. 116.ISBN 0-00-257157-9. ^abRowntree,BenjaminSeebohm(1901).Poverty:AStudyinTownLife.MacmillanandCo.p.298 ^"Povertyheadcountratioat$1.90aday(2011PPP)(%ofpopulation)|Data".data.worldbank.org.Retrieved23July2020. ^"PrinciplesandPracticeinMeasuringGlobalPoverty".TheWorldBank.13January2016.Retrieved17June2019. ^"WorldBankForecastsGlobalPovertytoFallBelow10%forFirstTime;MajorHurdlesRemaininGoaltoEndPovertyby2030".www.worldbank.org.Retrieved6October2015. ^Ravallion,Martin;ChenShaohua&Sangraula,PremDollaradayTheWorldBankEconomicReview,23,2,2009,pp.163–84 ^HildegardLingnau(19February2016)."Majorbreakthrough".D+C,development&cooperation.Retrieved27April2016. ^Sachs,JeffreyD.TheEndofPoverty2005,p.20 ^Hickel,Jason(1November2015)."Couldyouliveon$1.90aday?That'stheinternationalpovertyline".TheGuardian.ISSN 0261-3077.Retrieved10January2017. ^ RobertC.Allen,2017. 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Furtherreading[edit] Shweparde,Jon;RobertW.Greene(2003).SociologyandYou.Ohio:GlencoeMcGraw-Hill.p. A-22.ISBN 978-0-07-828576-9.Archivedfromtheoriginalon8March2010. AlanGillie,"TheOriginofthePovertyLine",EconomicHistoryReview,XLIX/4(1996),726 Villemez,WayneJ.(2001)."Poverty".EncyclopediaofSociology(PDF).NewYork:GaleVirtualReferenceLibrary. CritiquingtheDollar-a-DayIdeaofPoverty,HaraldEustachiusTomintz,27January2021,MisesInstitute Externallinks[edit] TheHistoryoftheOfficialPovertyMeasure,UnitedStatesBureauoftheCensus Fisher,Gordon(16December2005)."RelativeorAbsolute –NewLightontheBehaviorofPovertyLinesOverTime".DepartmentofHealthandHumanServices.Retrieved16January2008. vteDeprivationandpovertyindicatorsSocialTopics: Socialexclusion Socialvulnerability Relativedeprivation Disadvantaged Fushūgaku Hikikomori Socialdeterminantsofhealthinpoverty Measures: SocialProgressIndex PsychologicalTopics: psychologicalpoverty Povertyandmentalhealth EconomicTopics: Energypoverty Money-rich,time-poor Povertythreshold Secondarypoverty Assetpoverty Housingstress Incomedeficit Waterscarcity Survivalsex Debtbondage Precariat Extremepoverty Measures: BelowPovertyLine(India) HomelessVulnerabilityIndex Miseryindex(economics) Ginicoefficient Genuineprogressindicator(GPI) LegatumProsperityIndex Povertygapindex PhysicalTopics: PovertyandViolence Disabilityandpoverty Foodinsecurity Measures: IndiaStateHungerIndex GlobalHungerIndex Disability-adjustedlifeyear(DALYs) GlobalPeaceIndex(GPI) Complexmeasures HumanPovertyIndex(HPI) HumanDevelopmentIndex(HDI) MultidimensionalPovertyIndex(MPI) PhysicalQualityofLifeIndex(PQLI) Laekenindicators(EU) Scottishindexofmultipledeprivation Townsenddeprivationindex LivingPlanetIndex(LPI) ProgressoutofPovertyIndex GenderTopics: Feminizationofpoverty Measures: Gender-relatedDevelopmentIndex(GDI) GenderParityIndex OtherCategories:Incomeinequalitymetrics·Measurementsanddefinitionsofpoverty·Socialresponsibilityorganizations vteIndicesofDeprivationNational(generaldeprivation) Carstairs MultipleDeprivation2000(IMD2000) Deprivation2004(ID2004) Deprivation2007(ID2007) Deprivation2010(ID2010) Townsend National(subjectspecificdeprivation) Underprivilegedareascore DepartmentofEnvironment's Commonscategories:Informationgraphicsaboutpoverty·Poverty-relatedmaps Retrievedfrom"https://en.wikipedia.org/w/index.php?title=Poverty_threshold&oldid=1074833862" Categories:MeasurementsanddefinitionsofpovertyWelfareeconomicsHiddencategories:CS1errors:missingperiodicalAllarticleswithdeadexternallinksArticleswithdeadexternallinksfromMarch2018ArticleswithpermanentlydeadexternallinksWebarchivetemplatewaybacklinksArticleswithshortdescriptionShortdescriptionisdifferentfromWikidataArticleswithlimitedgeographicscopefromApril2019UnitedStates-centricUsedmydatesfromFebruary2021AllarticleswithunsourcedstatementsArticleswithunsourcedstatementsfromJune2019ArticlestobesplitfromSeptember2020AllarticlestobesplitAllarticleswithspecificallymarkedweasel-wordedphrasesArticleswithspecificallymarkedweasel-wordedphrasesfromJune2019Articlescontainingpotentiallydatedstatementsfrom2005AllarticlescontainingpotentiallydatedstatementsArticleswithunsourcedstatementsfromOctober2012 Navigationmenu Personaltools NotloggedinTalkContributionsCreateaccountLogin Namespaces ArticleTalk English expanded collapsed Views ReadEditViewhistory More expanded collapsed Search Navigation MainpageContentsCurrenteventsRandomarticleAboutWikipediaContactusDonate Contribute HelpLearntoeditCommunityportalRecentchangesUploadfile Tools WhatlinkshereRelatedchangesUploadfileSpecialpagesPermanentlinkPageinformationCitethispageWikidataitem Print/export DownloadasPDFPrintableversion Languages العربيةবাংলাБългарскиCatalàČeštinaDanskDeutschEestiEspañolEsperantoEuskaraفارسیFrançaisFryskGalego한국어हिन्दीIdoBahasaIndonesiaÍslenskaItalianoעבריתKurdîMagyarМакедонскиमराठीBahasaMelayuNederlands日本語NorskbokmålNorsknynorskOccitanਪੰਜਾਬੀپنجابیPolskiPortuguêsSimpleEnglishSlovenčinaСрпски/srpskiSuomiSvenskaதமிழ்ไทยTürkçeУкраїнськаاردوTiếngViệt粵語Zazaki中文 Editlinks