Squared Poverty Gap Index

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The Squared Poverty Gap Index determines the degree of poverty for a given area. This method squares the poverty gap for each individual/household, and thus puts more emphasis on observations that fall far short of the poverty line rather than those that are closer. This measure is a member of the FGT (Foster, Greer, Thorbecke) family of poverty measures. [1] .The Squared Poverty Gap Index is very similar to the Poverty Gap Index because it also weights the poor based on how poor they are. The difference between them is that the shortfalls of people below the poverty line are squared giving the very poor much more weight than those falling only a few cents short of the poverty line. [2]The Squared Poverty Gap Index is more beneficial to the poor who are further away from the poverty because they will not receive the same amount of aid from the government.

  1. http://sedac.ciesin.columbia.edu/povmap/contribute/ds_defs_vars.jsp
  2. http://esl.jrc.it/envind/un_meths/UN_ME014.htm
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