National Statistical Office of Mongolia

The poverty head count index (α=0) is the share of the population whose consumption is below the poverty line. This is a most widely used poverty index, that is comparably easy to interpret and understand, while other two more indices poverty gap and severity of poverty are used in order to get more comprehensive pictures of poverty. The poverty gap (α=1) is the average distance below the poverty line as a proportion of the poverty line where the mean is taken over the whole population, counting the non-poor as having zero poverty gaps. The severity of poverty (α=2) is the distribution of the consumption among the poor population. However, household consumption has increased, its amount is below poverty line, and poverty headcount and gap do not change, while poverty severity increases.

The POVERTY HEAD COUNT INDEX (α=0) is the share of the population whose consumption is below the poverty line. This is a most widely used poverty index, that is comparably easy to interpret and understand, while other two more indices poverty gap and severity of poverty are used in order to get more comprehensive pictures of poverty. The poverty gap (α=1) is the average distance below the poverty line as a proportion of the poverty line where the mean is taken over the whole population, counting the non-poor as having zero poverty gaps. The severity of poverty (α=2) is the distribution of the consumption among the poor population. However, household consumption has increased, its amount is below poverty line, and poverty headcount and gap do not change, while poverty severity increases.