Journal Article

Dollar a Day Revisited

Martin Ravallion, Shaohua Chen and Prem Sangraula

in The World Bank Economic Review

Volume 23, issue 2, pages 163-184
Published in print June 2009 | ISSN: 0258-6770
Published online June 2009 | e-ISSN: 1564-698X | DOI: http://dx.doi.org/10.1093/wber/lhp007
Dollar a Day Revisited

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  • Welfare and Poverty
  • Prices, Business Fluctuations, and Cycles
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The article presents the first major update of the international $1 a day poverty line, proposed in World Development Report 1990: Poverty for measuring absolute poverty by the standards of the world's poorest countries. In a new and more representative data set of national poverty lines, a marked economic gradient emerges only when consumption per person is above about $2.00 a day at 2005 purchasing power parity. Below this, the average poverty line is $1.25, which is proposed as the new international poverty line. The article tests the robustness of this line to alternative estimation methods and explains how it differs from the old $1 a day line.

Keywords: I32; E31; O10

Journal Article.  8716 words.  Illustrated.

Subjects: Welfare and Poverty ; Prices, Business Fluctuations, and Cycles ; Economic Development

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