A Unified Approach to Measuring Poverty and Inequality
in the subgroup with no child is so large (72.2 percent in 2003 [1,G] and 72 percent in 2006 [1,H]), compared to the subgroup with three or more children (only 1.0 percent in both years [4,G] and [4,H]), that the share of the subgroup with no child in total poverty is high. The analysis in table 3.21 enables a policy maker to understand the origin of poverty at a more disaggregated level. A policy maker should also focus on households with no child, even though the headcount ratio is lowest in this subgroup. Similar intuition should hold for the next set of results where the subgroups are based on household size. Headcount Ratio by Landownership Table 3.22 analyzes poverty by population household landownership subgroups for 2003, 2006, and the change across those years. The poverty line is set at GEL 75.4 per month. Columns A, B, and C analyze the poverty headcount ratios. Columns A and B report the headcount ratio for 2003 and 2006, respectively, while column C reports the difference over time. Columns D, E, and F outline the distribution of poor people across the subgroups, with the number in the cell being the proportion of poor people in the country located in that subgroup. This is the subgroup’s percentage contribution to overall poverty, or the headcount ratio times the population share that lies in that group. Columns G, H, and I depict the subgroups’ population distribution, or the population percentage found in
Table 3.22: Headcount Ratio by Landownership percent
Size of landholding (hectares) 1 2 3 4 5 6
Poverty line = GEL 75.4 0 Less than 0.2 0.2–0.5 0.5–1.0 More than 1.0 Total
Poverty headcount ratio
Distribution of the poor
Distribution of population
2003
2006
Change
2003
2006
Change
2003
2006
Change
A
B
C
D
E
F
G
H
I
29.4 39.4 33.9 25.1 28.2 29.9
32.7 36.2 36.9 24.3 22.4 31.0
3.3 −3.1 2.9 −0.8 −5.8 1.0
39.0 12.7 17.2 19.5 11.5 100.0
46.4 11.9 18.4 15.4 7.9 100.0
7.3 −0.7 1.1 −4.1 −3.6 n.a.
39.7 9.6 15.2 23.2 12.2 100.0
43.9 10.2 15.4 19.6 10.9 100.0
4.2 0.6 0.2 −3.6 −1.3 n.a.
Source: Based on ADePT Poverty and Inequality modules using Integrated Household Survey of Georgia 2003 and 2006. Note: n.a. = not applicable.
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