How Improved Household Surveys Influence National and International Poverty Rates

To effectively address poverty, it is essential that countries have the tools and means to accurately measure people’s living standards. Most countries rely on data collected from household surveys to measure monetary poverty, defining households as poor when their consumption is below the national poverty line. When countries improve the quality and scope of their household surveys, as some have done in recent years, they often capture consumption that is overlooked in previous surveys, thus leading to higher measured consumption. With better data, countries redefine their national poverty line, which on average balances out the higher consumption, leading to minimal change in national poverty rates. However, the international poverty line is fixed at any given point in time. Thus, when measured consumption increases, international poverty rates fall, sometimes dramatically. For this reason, international poverty rate comparisons over time should be done with caution when countries implement improved household surveys