P
Poverty Lines and Their Role
in Reducing Poverty
John H. McKendrick
Scottish Poverty and Inequality Research Unit,
Glasgow Caledonian University, Glasgow, UK
Synonyms
Breadline; Poverty threshold
Definitions
Poverty line is a value that is understood to be the
point of transition between living in poverty and
not living in poverty. Typically, the poverty line is
defined using levels of household income. It can
be set at all geographical scales, although it is
most commonly defined as either a national pov-
erty line or an international (global) poverty line.
The International Poverty Line is most closely
associated with the World Bank’ s $1 a day stan-
dard (and its uprating after 1990). The World
Bank’ s International Poverty Line is generally
understood to be the universal standard for deter-
mining absolute poverty. A National Poverty
Line is a value that is understood to be the point
of transition between living in poverty and not
living in poverty within a particular nation state.
National poverty lines can be conceived using
absolute poverty or relative poverty.
Poverty Lines
Poverty lines are essentially thresholds – points
that mark the transition between whether or not
the subject of study is considered to be living in
poverty. Poverty lines are most commonly con-
ceived in monetary terms, with the household or
individual as the unit of analysis. The threshold
value can be determined by what is actually con-
sumed (or what, in theory, is considered necessary
to consume), but more typically denotes what is
earned (or what, in theory, is considered the level
of income required to consume what is deemed
necessary). Thus, and taking the example of
household income, if the poverty line is set at
$1/day, then a household income of 99 cents/day
(or less) would determine that all within that
household were living in poverty, whereas
a household income of $1/day (or more) would
determine that all within that household were not.
Poverty lines (or thresholds) can also be deter-
mined using metrics other than income, e.g.,
possession or not of “necessities”, or using a
combination of income alongside other metrics.
Furthermore, this threshold can be defined to a
universal standard or can be contextualized to
circumstance. Poverty lines can be used to com-
pare the incidence of poverty across geographies
(world regions, nations grouped by income status,
nation states, or subnational geographies) or to
compare variations in the incidence of poverty
within geographies (for example, for subpop-
ulations defined by socioeconomic character).
© Springer Nature Switzerland AG 2020
W. Leal Filho et al. (eds.), No Poverty , Encyclopedia of the UN Sustainable Development Goals,
https://doi.org/10.1007/978-3-319-69625-6_91-1