Chapter 3: How to Interpret ADePT Results
each subgroup. Row 6 shows that the overall headcount ratio increases from 29.9 percent in 2003 [6,A] to 31.0 percent in 2006 [6,B], reflecting a 1.0 percentage point (rounded) increase in the headcount ratio. We find that 29.4 percent [1,A] of people who belong to households with no landownership are poor in 2003. In other words, the headcount ratio for this population subgroup is 29.4 percent. The headcount ratio for the same population subgroup increases to 32.7 percent in 2006 [1,B]. Thus, the headcount ratio increased by 3.3 percentage points [1,C] over these three years. We see that the headcount ratio for the population in households with landownership of 0.5–1.0 hectare decreased by 0.8 percentage point, from 25.1 percent [4,A] to 24.3 percent [4,B]. Of all poor people in Georgia in 2003, 39 percent [1,D] lived in households with no landownership. The share of poor with no landownership increased to 46.4 percent in 2006 [1,E]. The headcount ratio among the subgroup with landownership of 0.5–1.0 hectare (25.1 percent in 2003 [4,A] and 24.3 percent in 2006 [4,B]) is lower than the headcount for the subgroup with a landownership of less than 0.2 hectare (39.4 percent in 2003 [2,A] and 36.2 percent for 2006 [2,B]). Note that the share of the former subgroup to total poverty is 19.5 percent in 2003 [4,D], which fell by 4.1 percentage points to 15.4 percent in 2006 [4,E]. The share of the latter to total poverty is 12.7 percent in 2003 [2,D], which fell by only 0.7 percentage point to 11.9 percent in 2006 [2,E]. Note that despite a larger fall in the poverty rate of 3.1 percentage points [2,C] for the subgroup with landownership of less than 0.2 hectare, the share of poor in that subgroup fell by only 0.7 percentage point [2,F]. One might wonder about the reason behind this phenomenon. The answer can be found if we look at columns G and H. Notice that the population share with landownership of less than 0.2 hectare is 9.6 percent in 2003 [2,G], and it increased by 0.6 percentage point to 10.2 percent in 2006 [2,H]. In contrast, the population share with landownership of 0.5–1.0 hectare fell by 3.6 percentage points, from 23.2 percent [4,G] in 2003 to 19.6 percent [4,H] in 2006. Moreover, the population share in the latter subgroup is almost twice as high as that in the former subgroup in both years. Thus, despite a larger fall in headcount ratio for the subgroup with landownership of less than 0.2 hectare, its share in total number of poor did not decrease significantly compared to the subgroup with landownership of 0.5–1 hectare.
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