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A Simple Poverty Scorecard for the Philippines - About the Philippines

A Simple Poverty Scorecard for the Philippines - About the Philippines

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2. Data and poverty linesThis section discusses <strong>the</strong> data used to construct and test <strong>the</strong> poverty scorecard.It also presents <strong>the</strong> poverty lines to which scores are calibrated.2.1 DataThe scorecard is based on data from <strong>the</strong> 2004 APIS. This is <strong>the</strong> best, most recentnational survey that is available and that collects income or expenditure. Householdsare randomly divided into three sub-samples (Figure 2):• Construction <strong>for</strong> selecting indicators and points• Calibration <strong>for</strong> associating scores with poverty likelihoods• Validation <strong>for</strong> testing accuracy on data not used in construction or calibrationIn addition, <strong>the</strong> 2002 APIS is used in <strong>the</strong> validation of estimates of changes inpoverty rates <strong>for</strong> two independent representative samples between two points in time.2.2 <strong>Poverty</strong> rates and poverty lines2.2.1 RatesAs a general definition, <strong>the</strong> poverty rate is <strong>the</strong> share of people in a given groupwho live in households whose total household income (divided by <strong>the</strong> number ofhousehold members) is below a given poverty line.Beyond this general definition, <strong>the</strong>re two special cases, household-level povertyrates and person-level poverty rates. With household-level rates, each household is1

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