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How we measure poverty underestimates its extent and depth

Author

Listed:
  • Edita A. Tan

    (UP School of Economics)

Abstract

The country’s official definition of poverty is based on a threshold income that fails to adequately account for nonfood needs and is unrelated to actual behavior and real choices facing households. The resulting underestimation of the extent of poverty and rate of poverty reduction gives a false sense of comfort to policy-makers. Other sources of data particularly those on nutrition, education, and housing corroborate the existing gap between reality and official measures. After a critical look at existing methods, this paper proposes alternative thresholds of absolute poverty, with special attention to housing, that may provide a more accurate picture of the incidence and extent of the remaining poverty in the country.

Suggested Citation

  • Edita A. Tan, 2017. "How we measure poverty underestimates its extent and depth," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 54(1), pages 94-119, June.
    • Handle: RePEc:phs:prejrn:v:54:y:2017:i:1:p:94-119
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    File URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/951/854
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    Citations

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    Cited by:

    1. John F. Paparon, R.A & Glenne B. Lagura, DPA, 2022. "Rehabilitation Program for Typhoon Pablo Victims: A Case of the Province of Davao del Norte," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(9), pages 359-369, September.

    More about this item

    Keywords

    poverty measurement; poverty threshold; absolute poverty; housing; education; nutrition and malnutrition;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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