Our World in Data presents the empirical evidence on global development dedicated to specific topics. This blog post draws on data and research thoroughly discussed in our entry on Global Extreme Poverty.This post was updated February 26, 2017
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- The bars labeled ‘Shaefer-Edin’ correspond to poverty estimates as reported by Shaefer and Edin (2013).4 These estimates come from measuring welfare via income. The lower-poverty estimate includes tax credits and some forms of in-kind government benefits such as food stamps and housing benefits. The higher-poverty estimate excludes these benefits. Both estimates use the Survey of Income and Program Participation as their source, focusing only on households with children. 5
- The bars labeled ‘SIPP’ also correspond to estimates of poverty based on income using data from the Survey of Income and Program Participation. In this case, the different bars indicate different definitions of income – some more inclusive than others – and take into account the general population, including households without children. You can read the appendix in Chandy and Smith (2014) to see how these definitions compare to those from Shaefer and Edin (2013).
- The bars labeled as ‘SPM’ correspond to estimates of poverty using the source used for official poverty estimates (the Census Bureau’s Current Population Survey Annual Social and Economic Supplement) but applying yet another definition of income, called the Supplementary Poverty Measure (SPM). The SPM definition of income seeks to capture the impact of government policies intended to fight poverty and to exclude necessary expenses such as medical contributions and childcare. 6
- The bars labeled as ‘CEX’ correspond to estimates of poverty based on consumption. These estimates use data from the Consumer Expenditure Survey.7