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Poverty and Inequality Indicators
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Human Development Index (HDI)
The Human Development Index is a summary measure of average achievement in key dimensions of human development: a long and healthy life, being knowledgeable, and having a decent standard of living. HDI is used to classify countries and monitor development progress, integrating more dimensions than just income.
Income Share Held by Lowest 20%
This indicator shows the percentage of total national income that goes to the bottom 20% of the population. It provides insight into the economic conditions of the poorest segment and is used to assess inequality and economic fairness.
Shared Prosperity Indicator
The Shared Prosperity Indicator measures the income growth of the bottom 40% of the population. It provides insight into how economic growth is shared among different segments and is vital for assessing inclusivity and equitable economic progress.
Poverty Headcount Ratio
The Poverty Headcount Ratio is the proportion of a population that lives below the poverty line, which reflects the percentage of people considered poor. It is a basic measure that, while straightforward, does not reflect the depth or severity of poverty.
Progress out of Poverty Index (PPI)
The PPI is a tool used by companies and organizations to measure the poverty level of their clients and assess their progress out of poverty. It uses a set of indicators related to a household's characteristics and assets.
Multidimensional Poverty Index (MPI)
The MPI identifies deprivations across the same three dimensions as the HDI (health, education, and living standards) and shows the number of people who are multidimensionally poor and the deprivations they face. It highlights poverty that goes beyond income-based measures.
World Bank's Poverty Threshold
The World Bank's poverty threshold is a globally recognized benchmark for the minimum level of income deemed necessary to achieve a standard level of living. It is set at
Income Per Capita
Income Per Capita is calculated by dividing the national income by the population size. It provides an average economic indicator but does not give information about how income is distributed within the population, which is crucial for understanding inequality.
Gini Coefficient
The Gini Coefficient measures income inequality within a population. It ranges from 0 (perfect equality) to 1 (perfect inequality), with higher values indicating greater inequality. It is important as it provides a single measure to compare income or wealth distribution across different populations or countries.
Palma Ratio
The Palma Ratio is the ratio of the income share of the top 10% of a population to the income share of the bottom 40%. It is designed to highlight the extremes of income distribution and is used in the analysis of inequality.
Asset Poverty Line
The Asset Poverty Line is a measure of the level of assets (like savings, land, and livestock) needed by a household to maintain a basic standard of living for a set period of time. It is important to understand long-term economic security and resilience beyond income.
Income Share Held by Highest 20%
This indicator reflects the proportion of national income earned by the top 20% of earners. It highlights the concentration of income among the wealthiest segment of a population and can be considered alongside other measures to assess inequality.
Gender Inequality Index (GII)
The GII reflects gender-based disadvantages in three dimensions: reproductive health, empowerment, and the labor market. It is used to measure gender-based inequalities and to motivate policies aimed at reducing gender disparities.
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