Assessing the Impact of the 2017 PPPs on the International Poverty Line and Global PovertyDean Jolliffe, Daniel Gerszon Mahler, Christoph Lakner, Aziz Atamanov and Samuel Kofi Tetteh Baah No 9941, Policy Research Working Paper Series from The World Bank Abstract: Purchasing power parity exchange rates (PPPs) are used to estimate the international poverty line (IPL) in a common currency and account for relative price differences across countries when measuring global poverty. This paper assesses the impact of the 2017 PPPs on the nominal value of the IPL and global poverty. The analysis indicates that updating the $1.90 IPL in 2011 PPP dollars to 2017 PPP dollars results in an IPL of approximately $2.15—a finding that is robust to various methods and assumptions. Based on an updated IPL of $2.15, the global extreme poverty rate in 2017 falls from the previously estimated 9.3 to 9.1 percent, reducing the count of people who are poor by 15 million. This is a modest change compared with previous updates of PPP data. The paper also assesses the methodological stability between the 2011 and 2017 PPPs, scrutinizes large changes at the country level, and analyzes higher poverty lines with the 2017 PPPs. Keywords: Inequality; Inflation; International Trade and Trade Rules; Poverty Lines; Poverty Impact Evaluation; Small Area Estimation Poverty Mapping; Poverty Monitoring & Analysis; Poverty Diagnostics; Poverty Assessment (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:9941 Access Statistics for this paper More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC. |
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