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A Simple Poverty Scorecard for the Philippines

A Simple Poverty Scorecard for the Philippines

A Simple Poverty Scorecard for the Philippines

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6. Estimates of household poverty likelihoodsThe sum of scorecard points <strong>for</strong> a household is called <strong>the</strong> score. For <strong>the</strong><strong>Philippines</strong>, scores range from 0 (most likely below a poverty line) to 100 (least likelybelow a poverty line). While higher scores indicate less likelihood of being below apoverty line, <strong>the</strong> scores <strong>the</strong>mselves have only relative units. For example, doubling <strong>the</strong>score does not double <strong>the</strong> likelihood of being above a poverty line.To get absolute units, scores must be converted to poverty likelihoods, that is,probabilities of being below a poverty line. This is done via simple look-up tables. For<strong>the</strong> example of <strong>the</strong> national line, scores of 10–14 have a poverty likelihood of 91.5percent, and scores of 40–44 have a poverty likelihood of 36.8 percent (Figure 4).The poverty likelihood associated with a score varies by poverty line. Forexample, scores of 40–44 are associated with a poverty likelihood of 36.8 percent <strong>for</strong> <strong>the</strong>national line but 12.4 percent <strong>for</strong> <strong>the</strong> food line. 1515Starting with Figure 4, most figures have sixteen versions, one <strong>for</strong> each of <strong>the</strong> eightpoverty lines <strong>for</strong> <strong>the</strong> scorecard applied to <strong>the</strong> validation sample, and one <strong>for</strong> each of <strong>the</strong>eight poverty lines <strong>for</strong> <strong>the</strong> scorecard applied to <strong>the</strong> entire 2002 APIS. To keep <strong>the</strong>mstraight, <strong>the</strong>y are grouped by poverty line. Single tables that pertain to all poverty linesare placed with <strong>the</strong> tables <strong>for</strong> <strong>the</strong> national line.21

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