Editing Poverty threshold (section)

{{Short description|Minimum income deemed adequate to live in a specific country or place}}
{{Globalize|article|USA|2name=the United States|date=April 2019}}
{{Use dmy dates|date=February 2021}}
[[File:Extreme poverty 1981-2008.svg|thumb|Graph of global population living on under 1, 1.25 and 2 equivalent of 2005 US dollars daily (red) and as a proportion of world population (blue) based on 1981–2008 World Bank data{{update inline|date=August 2022}}]]
[[File:Poverty Thresholds for 2013.png|thumb|upright=1.75|Poverty thresholds for 2013]]
The '''poverty threshold''', '''poverty limit''', '''poverty line''', or '''breadline'''<ref>{{cite web|last=webster|first=The breadline|title=The breadline|url=https://www.merriam-webster.com/dictionary/the%20breadline}}</ref> is the minimum level of [[income]] deemed adequate in a particular country.<ref>Ravallion, Martin ''Poverty freak: A Guide to Concepts and Methods''. Living Standards Measurement Papers, The World</ref> The poverty line is usually calculated by estimating the total cost of one year's worth of necessities for the average adult.<ref name="nb">Poverty Lines – Martin Ravallion, in The New Palgrave Dictionary of Economics, 2nd Edition, London: Palgrave Macmillan</ref> The cost of housing, such as the [[renting|rent]] for an apartment, usually makes up the largest proportion of this estimate, so economists track the real estate market and other housing cost indicators as a major influence on the poverty line.<ref>{{cite web|url=https://www.parisschoolofeconomics.eu/docs/chassagnon-arnold/welfareeconomy_chapter4(1).pdf|title=Efficiency and equity|last=Chassagnon|first=A|date=2019|website=Paris School of Economics}}</ref> Individual factors are often used to account for various circumstances, such as whether one is a parent, elderly, a child, married, etc. The poverty threshold may be adjusted annually. In practice, like the definition of [[poverty]], the official or common understanding of the poverty line is significantly higher in [[developed country|developed countries]] than in [[developing country|developing countries]].<ref>Hagenaars, Aldi & de Vos, Klaas ''The Definition and Measurement of Poverty''. Journal of Human Resources, 1988</ref><ref>Hagenaars, Aldi & van Praag, Bernard ''A Synthesis of Poverty Line Definitions''. Review of Income and Wealth, 1985</ref>

In September 2022, the World Bank updated the '''International Poverty Line''' ('''IPL'''), a global absolute minimum, to $2.15 per day<ref name="World Bank">{{cite web|url=https://www.worldbank.org/en/news/factsheet/2022/05/02/fact-sheet-an-adjustment-to-global-poverty-lines|title=Fact Sheet: An Adjustment to Global Poverty Lines |date=Sep 14, 2022 |publisher=World Bank|access-date=26 September 2023}}</ref> (in [[Purchasing power parity|PPP]]). In addition, as of 2022, $3.65 per day in PPP for lower-middle income countries, and $6.85 per day in PPP for upper-middle income countries.<ref name=WBPL>{{cite web| url=https://povertydata.worldbank.org/poverty/home | title=World Bank 2022 poverty lines | access-date=January 10, 2022}}</ref><ref name=PLWB>{{cite web| url=https://www.worldbank.org/en/news/press-release/2020/10/07/covid-19-to-add-as-many-as-150-million-extreme-poor-by-2021 | title=COVID-19 to Add as Many as 150 Million Extreme Poor by 2021 |website=World Bank |date=  October 7, 2020 | access-date=January 10, 2022}}</ref> Per the $1.90/day standard, the percentage of the global population living in absolute poverty fell from over 80% in 1800 to 10% by 2015, according to [[United Nations]] estimates, which found roughly 734 million people remained in absolute poverty.<ref name="PovcalNet">{{cite web|url=http://iresearch.worldbank.org/PovcalNet/povDuplicateWB.aspx|title=PovcalNet|website=iresearch.worldbank.org|access-date=10 March 2019 |url-status=dead |archive-url=https://web.archive.org/web/20190327161528/http://iresearch.worldbank.org/PovcalNet/povDuplicateWB.aspx |archive-date= Mar 27, 2019 }}</ref><ref name="Vox">{{cite web|url=https://www.vox.com/2014/12/14/7384515/extreme-poverty-decline|last=Beauchamp|first=Zach|date=14 December 2014|publisher=Vox|title=The world's victory over extreme poverty, in one chart|access-date=17 June 2019}}</ref>