Some Australian Evidence on the Consensual Approach to Poverty Measurement

Abstract

Estimates of poverty in Australia have relied exclusively on the Henderson poverty line, despite extensive criticism of its relevance lo contemporary Australian conditions. This paper analyses data from Morgan Gallup Poll (MGP) surveys on the minimum income required by an Australian family of four 10 keep in health and live decently in order to assess community views on minimum income levels required in Australia. Analysis of how the average response to the MGP question has changed over the last four decades suggests that community views of adequate minimum income levels are adjusted upwards in line with average income levels. This evidence suggests that Australians sec poverty more in relative than absolute terms. Data from the July 1987 MGP survey arc then used lo derive a consensual poverty line based on responses to the minimum income question. The resulting poverty line is well above the Henderson poverty line. The survey data are then used to provide an estimate of poverty among families of four in July 1987 and to investigate some aspects of how family needs vary with family circumstances.