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This blog is based on an article in the Journal of International and Comparative Social Policy by Ilari Ilmakunnas. Click here to access the article. Despite the shared understanding that it is useful to analyse poverty by means of different measures, one measure is more commonly used than others. In the EU, the at-risk-of-poverty threshold… Continue reading Enhancing Clarity in Poverty Analysis →

Measuring poverty requires adjusting nominal consumption (or income) into a real value of consumption, across geographic areas and over time. To this end, data on consumer prices are used to construct a price index. There are a range of approaches to do this, from using the consumer price index, to survey-based unit values, which differ in the underlying sources of price data and methodologies for indexing. These different approaches can have large impacts on poverty measures and trends. Surprisingly little attention has been focused on this topic. This study reviews a range of issues and the evidence on how prices matter for measuring poverty, particularly in Africa. It draws on a wide literature, much from developed countries, and offers suggestions for future work in this area.

The treatment of housing in the definition of income used to measure poverty makes a big difference to who is counted as poor. Both the Before Housing Costs (BHC) and After Housing Costs (AHC) measures in current use in the UK pose problems. BHC income does not capture the advantages of living in owner-occupied housing and AHC income might not account for the benefits of living in higher-quality accommodation. We explore the potential of including in income the difference between the estimated value of housing consumed and housing costs, which we refer to as net imputed rent. We investigate whether findings about child and pensioner poverty, and judgements about the effectiveness of poverty-reducing policies, are affected by accounting for housing in this way.

This research is entitled Analysis of Poverty, Inequality, Unemployment and Indonesiandevelopment. The purpose of this study is to find out about poverty, unemployment, inequalityand development in Indonesia and their causes and what has been done by the government toovercome them. The research method used is the library research method, which is the study ofliterature obtained from the reference of books, scientific papers, government reports in theCentral Statistics Agency, the DPR, and websites that are related to the title of this research.Poverty is the inability of people to meet their basic needs such as food, clothing and housingand other equality, unemployment resulting from lack of available employment and businessopportunities that do not support it to be implemented, as well as inequality between the richand the poor, between villages with the city. The result is that the current poverty rate is equalto 9,41% unemployment equals 5,01% inequality 0,382% Development has been carried outwith economic growth amounting to and GDB amounting to Rp3 963,5 triliun.