CLASS 8 Poverty: Definitions, Measurement, and Working with Data

These flashcards cover key concepts, definitions, and important figures related to poverty measurement as discussed in the SW206 lecture.

What is poverty?

Poverty is defined in various ways, affecting political processes and leading to different statistics about its magnitude and scope.

Relative poverty measure

A measure that determines poverty status based on income relative to a median national income, typically defined as those earning less than 50% of the median.

Absolute poverty measure

A poverty measure that is based on a set dollar amount necessary for a basic standard of living.

Poverty thresholds vs. poverty guidelines

Poverty thresholds are used for statistical purposes while poverty guidelines are used to determine program eligibility.

Mollie Orshansky

An economist who developed the poverty thresholds in the 1960s based on food consumption data.

Economy food plan

The cheapest food plan developed by the U.S. Department of Agriculture used by Orshansky to create poverty thresholds.

Consumer Price Index for All Urban Consumers (CPI-U)

The measure used to update both poverty thresholds and guidelines annually.

Poverty rates measurement

Poverty rates can measure the percentage of people living below the poverty line, based on family relationship data.

International comparisons of poverty

Relative poverty measures used to compare poverty rates globally, often resulting in higher rates for the U.S. compared to other developed nations.

OECD

The Organisation for Economic Co-operation and Development, which provides data on poverty and encourages policies for sustainable economic growth.