The poverty gap index is a measure of the degree of poverty. It is defined as extent to which individuals on average fall below the poverty line, and expresses it as a percentage of the poverty line.[1]
The poverty gap index is an improvement over the poverty measure head count ratio, which simply counts all the people below a poverty line in a given population and considers them equally poor.[2] Poverty gap index estimates the depth of poverty by considering how far the poor are from that poverty line on average.[3]
The poverty gap index sometimes referred to as poverty gap ratio or pg index is defined as average of the ratio of the poverty gap to the poverty line.[4] It is expressed as a percentage of the poverty line for a country or region.[5]
^"Poverty Gap". stats.areppim.com. Retrieved June 3, 2023.
^Sen, Amartya (March 1976). "Poverty: An Ordinal Approach to Measurement". Econometrica. 44 (2): 219–231. doi:10.2307/1912718. JSTOR 1912718.
^Grusky, David B.; Kanbur, Ravi, eds. (2006). Poverty and Inequality. Studies in Social Inequality. Stanford, California: Stanford University Press. p. [page needed]. ISBN 978-0-8047-4843-8.
^Indicators for Monitoring the Millennium Development Goals(PDF). New York: United Nations. 2003. p. 9.
^"Poverty Measures" (PDF). World Bank. 2009. Archived from the original (PDF) on July 10, 2012.
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