Poverty and Inequity Koichi Fujita CSEAS Kyoto University
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Poverty and Inequity Koichi Fujita CSEAS, Kyoto University Japan www. Assignment. Point. com
Indicators of Poverty • Poverty line Per capita income/expenditure under which we regard them as being poverty. It is measured using statistical data on household income and expenditure. BBS (Bangladesh Bureau of Statistics), Survey on Household Income and Expenditure. International standard: 1 US$ or 2 US$ (PPP) • Head count ratio Percentage of people below poverty line • Poverty Gap Poverty gap= Ʃ (z-yi)/nz yi<z www. Assignment. Point. com
Why Poverty Gap? www. Assignment. Point. com
Inequality www. Assignment. Point. com
Which is more unequal? Case 1 Case 2 100, 0 90, 0 80, 0 70, 0 60, 0 50, 0 40, 0 30, 0 20, 0 10, 0 0 5 10 15 20 0 www. Assignment. Point. com 5 10 15 20
Gini Coefficient • An indicator of inequality 1) 2) 3) 4) 5) 6) 7) Change the order from smallest to largest. Make cumulative amount. Calculate the number when total cumulative amount is 100. Draw curve line. Draw 45 degree line. Calculate the area between 45 degree line and the curve line (=S). Gini coeffeicient= S/(100*20/2) • Gini coefficient 0 < Gini < 1 Larger the Gini coefficient, larger the inequality. www. Assignment. Point. com
An Example: Case of Bangladesh (1) Head count ratio (poverty) Head count ratio (extreme poverty) 70 50 45 60 40 35 ％ 40 30 25 National 20 15 National Urban 10 Rural 10 2005 2000 1995/96 www. Assignment. Point. com 1985/86 0 Urban 1983/84 2005 2000 1995/96 1991/92 1988/89 0 1985/86 5 1991/92 Rural 20 1988/89 30 1983/84 ％ 50
Head Count Ratio in Rural Bangladesh www. Assignment. Point. com
An Example: Case of Bangladesh (2) Gini coefficient 0, 55 0, 45 0, 4 0, 35 Rural Urban 0, 3 National 0, 25 www. Assignment. Point. com 2005 2000 1995 1991/92 1988/89 1985/86 1983/84 0, 2
Economic Development and Income Inequality • Kuznet’s Inverted-U Hypothesis Gini coefficient Economic Development www. Assignment. Point. com
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