Measuring Poverty Using Qualitative Perceptions of Consumption Adequacy

Abstract

We show that subjective poverty lines can be derived using simple qualitative assessments of perceived consumption adequacy based on a household survey. We implement the method using survey data for Jamaica and Nepal. Respondents were asked whether their consumptions of food, housing, and clothing were adequate for their family's needs. The implied poverty lines are robust to alternative methods of dealing with other components of expenditure. The aggregate poverty rates accord quite closely with those based on independent “objective” poverty lines. However, there are notable differences in the geographic and demographic poverty profiles.