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HOW TO MEASURE EXTREME POVERTY IN THE EU Our Plan Brussels 22 September 2009
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Extreme poverty concepts Severe or core…. The poverty probably has to be persistent to be extreme? Absolute measures associated with nutritional standards will probably be salient It implies a distribution with those in extreme poverty being at the bottom end of it. One important issue that we have to keep in mind is that this project is about measurement –
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Five options for establishing a standard of extreme poverty Budget standards – minimum income standard Expenditure surveys – US poverty standard, World Bank Social assistance scales – government established minimum – below poverty thresholds Subjective measures – economic stress, absolute/overall thresholds Social indicators – lack of durables/access to services 3 parts to the work
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1. Critical review of previous attempts International organisations National governments Academic publications Web and library resources Correspondence with key informants Please help with non English material
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2. Secondary data analysis of SILC Exploring alternative thresholds How they change poverty rates, gaps and composition of the poor Problems Low income unreliable Some extremely poor not covered by surveys
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Thresholds to be tried Lower % of median Social assistance based thresholds Budget standard thresholds Income thresholds where deprivation increases Income+Deprivation thresholds Problems European HBS not accessible – spending on necessities, no spending on luxuries
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3. Review of thresholds used in Member States Social assistance/minimum income schemes Official and semi official thresholds in use. National informants.
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Questions Does this make sense? Are there any other ways of understanding extreme poverty?
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