Poverty measures and definitions

Abstract

In this article an attempt is made to explain what poverty means and how it is measured. Absolute income measures are discussed with reference to England, America, Australia and South Africa. These encompass the poverty line, the social security administration measure, the Henderson poverty line, the South African poverty datum line and the poverty gap. Relative income measures of poverty used in England, America and Australia are described. Absolute measures of poverty, the income‐net worth approach, a definition that includes other resources and a balance sheet method are explained. Socio‐economic measures are dealt with. These include the sociological concept of poverty, socio‐economic status measures and the culture of poverty view. Other measures described are public dependency and residential measures, mortality measures, a normative measure and subjective poverty.