How poverty is measured impacts who gets classified as impoverished

Pu, Christine J.;Lambin, Eric;Kusimakwe, Ian;Gichia, Lenny;Davis, Jennifer;et.al.
(2024) Proceedings of the National Academy of Sciences — Vol. 121, n° 7, p. 7 (2024)

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Authors
  • Pu, Christine J.orcid-logoDepartment of Civil and Environmental Engineering, Stanford University, Stanford
    Author
  • Lambin, Ericorcid-logoUCLouvain
    Author
  • Kusimakwe, IanInternational Growth Research and Evaluation Center, Kampala, Uganda
    Author
  • Gichia, LennyInternational Growth Research and Evaluation Center, Kampala, Uganda
    Author
  • Davis, Jenniferorcid-logoDepartment of Civil and Environmental Engineering, Stanford University, Stanford, CA 94305
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Abstract
We test whether the classification of households into poverty categories is meaningfully influenced by the poverty measurement approach that is employed. These classification techniques are widely used by governments, non-profit organizations, and development agencies for policy design and implementation. Using primary data collected in Ethiopia, Ghana, and Uganda, we find almost no agreement in how four commonly used approaches rank 16,150 households in terms of poverty status. This result holds for each country, for urban and rural households, and across the entire socio-economic distribution. Households’ poverty rankings differ by an entire quartile on average. Conclusions about progress toward poverty alleviation goals may depend in large part on how poverty is measured.
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Citations

Pu, C. J., Lambin, E., Kusimakwe, I., Gichia, L., Seme, A., Otupiri, E., & Davis, J. (2024). How poverty is measured impacts who gets classified as impoverished. Proceedings of the National Academy of Sciences, 121(7), 7. https://doi.org/10.1073/pnas.2316730121 (Original work published 2024)