ECON 112 Lecture Notes - Lecture 5: Headcount, Sub-Saharan Africa, Progressive Tax
Document Summary
Absolute poverty lines are based on absolute minimum standards of what families should be able to afford (either through income or services) in order to meet their basic needs. The international poverty line is currently set at . 90 a day. It is the universal standard for measuring global poverty. This line helps measure the number of people living in extreme poverty. As the cost-of-living increases, poverty lines increase too. Start by defining an adequate basket of food, based on nutritional requirements from medical studies of required calories, protein and micronutrients. Then, using local household survey data, identify a typical basket of food purchased by households that just barely meet these nutritional requirements. Add other expenses of this household, including clothing, shelter and medical care. Students went to guatemala to understand what it means and what it looks like. Clear decline in the total population living in poverty. People have crossed the threshold but haven"t gone very far over.
