Published on November 28, 2007
Incidence of Poverty in Pakistan: Methods and MeasurementFowad Murtaza Department of EconomicsUniversity of Essex IDEAs Workshop/Conference at Tsinghua University, Beijing, China, June 3-9, 2007: Incidence of Poverty in Pakistan: Methods and Measurement Fowad Murtaza Department of Economics University of Essex IDEAs Workshop/Conference at Tsinghua University, Beijing, China, June 3-9, 2007 Presentation Contents: Presentation Contents 1. Motivation Methodology 3. Results and Future work 1. Motivation: 1. Motivation In the absence of an official and widely acceptable poverty line in Pakistan, the motivation is to review different poverty measurement approaches and indicators; and respectively develop the indices of poverty and conduct poverty analyses in Pakistan. Slide4: 2. Methodology The methodology for the poverty analysis is divided into 6 steps: data source indicator of well being unit of analysis selection and calculation of poverty line poverty indexes checking the robustness Slide5: 2.1 Data Source Household Integrated Economic Survey (HIES) data conducted by the Federal Bureau of Statistics, Government of Pakistan for year (2000-01) 2.2 Indicator of Wellbeing Monetary indicator; i.e. consumption expenditure of households 5 sub consumption aggregates: food items fuel and utilities housing frequent non food expenses other non food expenses Slide6: 2.3 Unit of Analysis Individuals not households i.e consumption per capita 2.4 Selection and calculation of Poverty Line Absolute Poverty Line Food Energy Intake (FEI)/Caloric Approach (a monetary expenditure necessary to reach the minimum calorie intake, and it also includes a minimum expenditure of non-food items) Slide7: 2.4 (cont..) At least three steps required in adopting the calorie approach: minimum calorie intake per day (2350 calories per adult per day set by Government of Pakistan); transformation of the calorie intake in monetary terms (regression); inclusion of other non food minimum expenditure in relation to the minimum food expenditure. Slide8: 2.5 Poverty Index Most common and preferred measure: Headcount Ratio (Incidence of Poverty) Head-count: Where z is the poverty line, wi is the per adult equivalent consumption expenditure of the individual i, and N is the total population Poverty Line = Rs728.51 per capita per month: Poverty Line = Rs728.51 per capita per month Slide10: Relative Poverty Incidence: Slide11: 2.6 Checking the Robustness of Poverty Indices For robustness analysis for different poverty lines, I sketch cumulative distribution functions. Slide12: Robustness Check of Estimated Poverty Line Slide13: Food Deficient Population = 69.69% (i.e. population using less than 2350 calories daily) Slide14: Further work... Inclusion of more data sets Develop poverty profiles and correlates Analyze the determinants of poverty Inequality and income distribution Sectoral poverty decomposition Growth and poverty reduction etc Government policies and poverty alleviation (MDGs) Thank YOU!: Thank YOU!