A Simple Poverty Scorecard for the Philippines

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2. Data and poverty linesThis section discusses the data used to construct and test the poverty scorecard.It also presents the poverty lines to which scores are calibrated.2.1 DataThe scorecard is based on data from the 2004 APIS. This is the best, most recentnational survey that is available and that collects income or expenditure. Householdsare randomly divided into three sub-samples (Figure 2):• Construction for selecting indicators and points• Calibration for associating scores with poverty likelihoods• Validation for testing accuracy on data not used in construction or calibrationIn addition, the 2002 APIS is used in the validation of estimates of changes inpoverty rates for two independent representative samples between two points in time.2.2 Poverty rates and poverty lines2.2.1 RatesAs a general definition, the poverty rate is the share of people in a given groupwho live in households whose total household income (divided by the number ofhousehold members) is below a given poverty line.Beyond this general definition, there two special cases, household-level povertyrates and person-level poverty rates. With household-level rates, each household is1
counted as if it had only one person, regardless of true household size, so all householdsare counted equally. With person-level rates (the “head-count index”), each household isweighted by the number of people in it, so larger households count more.For example, consider a group of two households, the first with one member andthe second with two members. Suppose further that the first household has per-capitaincome above a poverty line (it is “non-poor”) and that the second household has percapitaincome below a poverty line (it is “poor”). The household-level rate counts bothhouseholds as if they had only one person and so gives a poverty rate of 1 ) (1 + 1) =50 percent. In contrast, the person-level rate weighs each household by the number ofpeople in it and so gives a poverty rate of 2 ) (1 + 2) = 67 percent.Whether the household-level rate or the person-level rate is relevant depends onthe situation. If an organization’s “participants” include all the people in a household,then the person-level rate is relevant. Governments, for example, are concerned with thewell-being of people, regardless of how those people are arranged in households, sogovernments typically report person-level poverty rates.If an organization has only one “participant” per household, however, then thehousehold-level rate is relevant. For example, if a microlender has only one borrower ina household, then it might prefer to report household-level poverty rates.This paper reports poverty rates and poverty lines at both the household-leveland the person-level, by urban/rural for all provinces in the Philippines, for both 20022
Page 1 and 2: A Simple Poverty Scorecard for the
Page 3 and 4: comparable across organizations nor
Page 5 and 6: Poverty scoring can also be used fo
Page 7: points or less for estimates of cha
Page 11 and 12: derived from the 2000 FIES by the N
Page 13 and 14: Given this, the USD1.25/day 2005 PP
Page 15 and 16: Reyes builds a scorecard using the
Page 17 and 18: that quickly show how estimated pov
Page 19 and 20: 3.3 Gwatkin et al.Gwatkin et al. (2
Page 21 and 22: includes income, the PCA index cann
Page 23 and 24: One of these one-indicator scorecar
Page 25 and 26: The scorecard in Figure 1 is ready
Page 27 and 28: If not determined by other factors,
Page 29 and 30: 6.1 Calibrating scores with poverty
Page 31 and 32: 6.2 Accuracy of estimates of househ
Page 33 and 34: The 90-percent confidence interval
Page 35 and 36: 7. Estimates of a group’s poverty
Page 37 and 38: To derive a sample-size formula (or
Page 39 and 40: 21.64n = 0. 55 ⋅⎛ ⎞⎜ ⎟
Page 41 and 42: 8. Estimates of changes in group po
Page 43 and 44: 2002 in the Philippines is the diff
Page 45 and 46: from 0.63 to 0.77 (Figure 10), sugg
Page 47 and 48: To illustrate the use of (8), suppo
Page 49 and 50: the four possible targeting outcome
Page 51 and 52: As an alternative to assigning bene
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Page 55 and 56: ReferencesAdams, N.M.; and D.J. Han
Page 57 and 58: Hentschel, Jesko; Lanjouw, Jean Ols
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Onwujekwe, Obinna; Hanson, Kara; an
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Stillwell, William G.; Barron, F. H
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Figure 1: A simple poverty scorecar
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Figure 3: Poverty indicators by unc
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Figure 3 (cont.): Poverty indicator
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National Poverty Line Tables(and Ta
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Figure 5 (National poverty line): D
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Figure 7 (National poverty line): B
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Figure 9 (National poverty line): D
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Figure 11 (All poverty lines): Poss
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Figure 13 (National poverty line):
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Figure 4 (National food poverty lin
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Figure 7 (National food poverty lin
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Figure 12 (National food poverty li
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USAID “Extreme” Poverty Line Ta
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Figure 5 (USAID “Extreme” pover
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Figure 9 (USAID “Extreme” pover
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Figure 13 (USAID “Extreme” pove
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Figure 4 (USD1.25/day 2005 PPP line
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Figure 12 (USD1.25/day 2005 PPP lin
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USD2.50/Day 2005 PPP Poverty Line T
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USD5.00/Day 2005 PPP Poverty Line T
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National Poverty Line Tablesfor 200
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Figure 9 (National line): Differenc
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Figure 13 (National line): For a gi
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Figure 7 (Food line): Bootstrapped
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Figure 12 (Food line): Households b
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USAID “Extreme” Poverty Line Ta
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Figure 9 (USAID “extreme” line)
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Figure 13 (USAID “extreme” line
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USD2.50/day 2005 PPP Poverty Line T
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USD5.00/day 2005 PPP Poverty Line T
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Poverty Lines and Poverty Rates,by
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Figure A2: All-urban Philippines an
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Figure A4: Agusan del Norte, povert
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Figure A6: Aklan, poverty lines and
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Figure A8: Antique, poverty lines a
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Figure A10: Bataan, poverty lines a
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Figure A12: Batangas, poverty lines
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Figure A14: Bohol, poverty lines an
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Figure A16: Bulacan, poverty lines
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Figure A18: Camarines Norte, povert
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Figure A20: Camiguin, poverty lines
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Figure A22: Catanduanes, poverty li
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Figure A24: Cebu, poverty lines and
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Figure A26: Davao del Sur, poverty
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Figure A28: Eastern Samar, poverty
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Figure A30: Ilocos Norte, poverty l
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Figure A32: Iloilo, poverty lines a
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Figure A34: Kalinga, poverty lines
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Figure A36: Laguna, poverty lines a
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Figure A38: Lanao del Sur, poverty
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Figure A40: Maguindanao, poverty li
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Figure A42: Marinduque, poverty lin
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Figure A44: Misamis Occidental, pov
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Figure A46: Mountain Province, pove
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Figure A48: Negros Oriental, povert
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Figure A50: Northern Samar, poverty
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Figure A52: Nueva Vizcaya, poverty
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Figure A54: Oriental Mindoro, pover
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Figure A56: Pampanga, poverty lines
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Figure A58: Quezon, poverty lines a
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Figure A60: Rizal, poverty lines an
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Figure A62: Western Samar, poverty
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Figure A64: Sorsogon, poverty lines
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Figure A66: Southern Leyte, poverty
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Figure A68: Sulu, poverty lines and
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Figure A70: Surigao del Sur, povert
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Figure A72: Tawi-tawi, poverty line
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Figure A74: Zamboanga del Norte, po
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Figure A76: 2nd District, poverty l
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Figure A78: 4th District, poverty l
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Figure A80: Biliran, poverty lines
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Figure A82: Saranggani, poverty lin
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Figure A84: Compostela Valley, pove
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Figure A86: Shariff Kabunsuan, pove
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Figure A88: Isabela City, poverty l
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A Simple Poverty Scorecard for the Philippines

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