Question

Mention three (statistical) methods that can be used for the estimation of poverty, and briefly explain how each is applied.

Answer 1

POVERTY ESTIMATION:

Poverty can be estimated on the basis of income or consumption level. If income or consumption level falls below the given minimum level, then the house hold is said to be below poverty line.

POVERTY LINE CALCULATION:

Poverty estimation in India is now carried out by NITI Aayog's task force depends on the data captured by National Sample Survey Office under the Ministry of Statistics and Programme Implementation (MOSPI)

METHODS OF ESTIMATION OF POVERTY:

ABSOLUTE MEASUEMENT OF POVERTY:

Absolute poverty is a condition identified by severe deprivation of basic human need. It rely not only on income but also on access to social service.

RELATIVE MEASUREMENT:

It is exists when a household income is lower than the medium income and used especially by developed countries. Those who fall into group of relative poverty are not necessarily deprived of all basic needs, but may not live the same standard of living as majority of the society.