Absolute and Relative Poverty Measurement: A Survey

Benoît Decerf ()

No 10008, Policy Research Working Paper Series from The World Bank

Abstract: This paper reviews the debate opposing the absolute and relative approaches to monetary poverty measurement. The arguments for combining both approaches into a single “overall” monetary poverty measure are introduced. The most salient proposals of hybrid poverty lines are presented. Then, the reasons why specific poverty indices may be required when a hybrid line is used are discussed. The class of hierarchical poverty indices is described, focusing in particular on the hierarchical headcount ratio.

Date: 2022-04-18
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