ABSTRACT
This chapter surveys both conceptual and practical aspects of measuring poverty and wellbeing. It begins with the idea of absolute and relative poverty lines, and why they are necessary for measurement. It discusses consumption measures, including an example of a household survey. Then it covers several monetary measures such as GDP per capita, and inequality measures such as the Gini coefficient. The chapter includes an empirical overview of where most of the world’s population in extreme poverty are located. The chapter’s coverage of multidimensional measures starts with representative human development indicators in health and education before detailing the Sustainable Development Goals. Index measures such as the Human Development Index and the Gender Inequality Index are introduced, and the Multidimensional Poverty Index is considered in some detail for its relationship to the capabilities approach. Next the chapter explores qualitative measures such as Participatory Poverty Assessments, as well as subjective wellbeing measures including happiness. It concludes by examining some of the difficulties with measurement, such as methodological and data problems.
