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Poverty threshold information


Graph of global population living on under 1, 1.25 and 2 equivalent of 2005 US dollars daily (red) and as a proportion of world population (blue) based on 1981–2008 World Bank data[needs update]
Poverty thresholds for 2013

The poverty threshold, poverty limit, poverty line, or breadline[1] is the minimum level of income deemed adequate in a particular country.[2] The poverty line is usually calculated by estimating the total cost of one year's worth of necessities for the average adult.[3] The cost of housing, such as the rent for an apartment, usually makes up the largest proportion of this estimate, so economists track the real estate market and other housing cost indicators as a major influence on the poverty line.[4] Individual factors are often used to account for various circumstances, such as whether one is a parent, elderly, a child, married, etc. The poverty threshold may be adjusted annually. In practice, like the definition of poverty, the official or common understanding of the poverty line is significantly higher in developed countries than in developing countries.[5][6]

In September 2022, the World Bank updated the International Poverty Line (IPL), a global absolute minimum, to $2.15 per day[7] (in PPP). In addition, as of 2022, $3.65 per day in PPP for lower-middle income countries, and $6.85 per day in PPP for upper-middle income countries.[8][9] Per the $1.90/day standard, the percentage of the global population living in absolute poverty fell from over 80% in 1800 to 10% by 2015, according to United Nations estimates, which found roughly 734 million people remained in absolute poverty.[10][11]

  1. ^ webster, The breadline. "The breadline".
  2. ^ Ravallion, Martin Poverty freak: A Guide to Concepts and Methods. Living Standards Measurement Papers, The World
  3. ^ Poverty Lines – Martin Ravallion, in The New Palgrave Dictionary of Economics, 2nd Edition, London: Palgrave Macmillan
  4. ^ Chassagnon, A (2019). "Efficiency and equity" (PDF). Paris School of Economics.
  5. ^ Hagenaars, Aldi & de Vos, Klaas The Definition and Measurement of Poverty. Journal of Human Resources, 1988
  6. ^ Hagenaars, Aldi & van Praag, Bernard A Synthesis of Poverty Line Definitions. Review of Income and Wealth, 1985
  7. ^ "World Bank". The World Bank. Retrieved 26 September 2023.
  8. ^ "World Bank 2022 poverty lines". Retrieved 10 January 2022.
  9. ^ "2022 World Bank poverty lines". Retrieved 10 January 2022.
  10. ^ "PovcalNet". iresearch.worldbank.org. Retrieved 10 March 2019.
  11. ^ Beauchamp, Zach (14 December 2014). "The world's victory over extreme poverty, in one chart". Vox. Retrieved 17 June 2019.

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