Poverty Profile

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INTRODUCTION TO POVERTY ANALYSIS

Table of Contents
CHAPTER 1: THE CONCEPT OF POVERTY AND WELL-BEING 1.1 The concept of well-being and poverty 1.2 why measure poverty CHAPTER 2: MEASURING POVERTY 2.1 Steps in measuring poverty 2.2 Household surveys 2.3 Measuring poverty: choose an indicator of welfare CHAPTER 3:

POVERTY LINE

3.1 3.2 3.3 3.4 4.1 4.2 4.3 4.4 4.5 4.6 4.7

how to define a poverty line Issues in choosing poverty line Solution A: objective poverty lines Solution B: subjective poverty lines Headcount index Poverty gap index Squared poverty gap index Sen index Sen-Shorrocks-Thon index Time taken to exit Other measures

CHAPTER 4: POVERTY MEASURES

CHAPTER 5: POVERTY INDEXES--COMPARISON OF MEASURES

5.1 5.2 5.3 5.4 5.5 6.1 6.2 6.3 6.4 7.1 7.2 7.3 7.4 7.5 7.6

Introduction Measurement errors Equivalence scales Robustness of ordinal poverty comparisons Summary Definition of inequality Commonly used measures of inequality Inequality comparisons Decomposition of income inequality What is poverty profile Additive poverty measures Profile presentation Poverty comparison over time Excerpts from poverty profiles for Indonesia and Cambodia Poverty mapping

CHAPTER 6: INEQUALITY MEASURES

CHAPTER 7: DESCRIBING POVERTY: POVERTY PROFILES

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CHAPTER 8: UNDERSTANDING THE DETERMINANTS OF POVERTY

8.1 8.2 8.3 8.4 8.5 8.6 8.7

What causes poverty regional level characteristics community level characteristics Household and individual level characteristics Understanding the quantitative determinants Understanding the qualitative determinants Analyzing the determinants of poverty

CHAPTER 9: POVERTY REDUCTION POLICIES

9.1 A framework for action 9.2 Practice and good examples

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An Overview
This manual presents an introductory course on poverty analysis. The course is designed as part of a broader training program of the World Bank Institute called the Poverty Analysis Initiative (PAI). Its objective is to improve in-country capacity in poverty analysis in poor countries; it focuses especially on developing the skills of statisticians, policy analysts, and researchers in the analysis of data emerging from household surveys, in order to support the policy work related to the PRSP (Poverty Reduction Strategy Paper) process involving poverty identification, measurement, monitoring, and evaluation. This manual covers introductory topics related to poverty measurement and diagnostics, and applies these methods using household survey data. The topics included in this manual are: the concept of well-being, why measure poverty, how measure poverty, setting poverty lines, poverty indices and their comparisons, inequality measures, poverty profiles, the determinants of poverty, and how poverty analysis is linked to poverty reduction policies. The manual includes discussions of these topics with illustrations from different countries. Many of the materials included in this manual are drawn from the work of Martin Ravallion of the World Bank’s Development Research Group. The manual has benefited from work of others from inside and outside the World Bank. These course materials were used for training in a Regional workshop in the Philippines and a national workshop in Cambodia. This manual has been prepared under the general direction of Shahid Khandker of the World Bank Institute with contributions from Jonathan Haughton, Kathleen Beegle, Celia Reyes, and Nidhiya Menon. The STATA exercises were prepared by Hussain Samad and Changqing Sun. The manual provides the tools for carrying out basic poverty analysis with household data, using STATA software. It includes tailor-made exercises to illustrate the techniques and measures discussed in different chapters. The manual provides a course curriculum with an outline of a full-time 9-day training program of morning lectures and afternoon practice exercises.. The manual will be updated in the future with new exercises based on other software such as SPSS and...
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