Poverty has traditionally been measured by the number of people with income below the poverty line.
But this doesn’t tell us how far below that line the poor are.
The poverty gap index adds up the shortfall of each poor person’s income from the poverty line and divides the sum by the country’s population to arrive at the mean shortfall.
But this doesn’t tell us how far below that line the poor are.
The poverty gap index adds up the shortfall of each poor person’s income from the poverty line and divides the sum by the country’s population to arrive at the mean shortfall.
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