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The World Bank Economic Review Advance Access published online on June 26, 2009
The World Bank Economic Review, doi:10.1093/wber/lhp007
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© The Author 2009. Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / THE WORLD BANK. All rights reserved. For permissions, please e-mail: journals.permissions@oxfordjournals.org

Dollar a Day Revisited

Martin Ravallion, Shaohua Chen, and Prem Sangraula

Correspondence: email address is mravallion{at}worldbank.org

JEL codes: I32, E31, O10

The article presents the first major update of the international $1 a day poverty line, proposed in World Development Report 1990: Poverty for measuring absolute poverty by the standards of the world's poorest countries. In a new and more representative data set of national poverty lines, a marked economic gradient emerges only when consumption per person is above about $2.00 a day at 2005 purchasing power parity. Below this, the average poverty line is $1.25, which is proposed as the new international poverty line. The article tests the robustness of this line to alternative estimation methods and explains how it differs from the old $1 a day line.

Martin Ravallion (corresponding author) is a director of the Development Research Group at the World Bank. Shaohua Chen is a senior statistician in the Development Economics Research Group at the World Bank; her email address is schen{at}worldbank.org. Prem Sangraula is an economist in the Development Research Group at the World Bank; his email address is psangraula{at}worldbank.org.


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