1. Chapter 2 – Monetary Poverty
Richard Tonkin

2. Introduction Thank you to everyone who has contributed so far!
Input from OECD, UNECE, CISSTAT, Russia, Georgia, Italy & Germany
Structure follows that agreed at last meeting
Aimed to integrate all contributions into initial draft
Where touched on same issues, aimed to merge together
Left out (for now) issues covered by other chapters (e.g. General definitions / subjective poverty)
Only had time for relatively minimal editorial work
Please excuse lapses in balance, typos etc. !

3. General questions
Are there important issues that haven't been addressed?
Or not enough detail?
Any further issues that would benefit from case study/worked examples?
Are there areas that overlap too much with other chapters?
Or where less detail needed?
What should be the main conclusions & main unresolved issues?

4. Section A: Concepts and methods
Starts with overview of monetary poverty
Remainder of section describes:
Unit of measurement
Unit of analysis
Household definition
Population coverage (communal establishments, homeless & Gypsy/Roma)
Questions/comments:
How does this follow on from Chapter 1? Right level of detail?
Any basic concepts missing?
To do: Update WB poverty measure to $1.90/day

5. Section B(i) Welfare Measures
Income concept & definitions
The income concept
Income components (e.g. Income from employment, property income, etc.)
Income aggregation
Case study: Persons at-risk-of-poverty & beneficiaries of social transfers – different people? (Germany)
Data sources for household income
Income surveys
Income data from registers
Pros and cons of income as a welfare measure
Questions/comments:
Too much detail on income definition? Info available in UNECE Canberra handbook/ OECD ICW framework
Is German case study in right place? If not, where?
Add something about reference periods?
Case study on how poverty rates affected by source (e.g.Nordic countries)

6. Section B(ii) Welfare Measures
Consumption expenditure concept & definitions
Data sources for household income
Household surveys
Retrospective vs. Ongoing collection
Pros and cons of consumption expenditure as a welfare measure
Using multiple welfare measures
Case study: comparing poverty estimates using income, expenditure & mat dep (UK/EU)
Questions/comments:
More detail on concepts necessary, or right level of detail?
Any further case studies on measurement?

7. Section B(iii) Welfare Measures
Key measurement issues
Self-employment income
Goods/services produced for own consumption
Case study: Imputed rent in EU-SILC (EU)
Transfers between households
Social transfers in kind (STIK)
Case study STIK in UK & Finland
Questions/comments:
Would be good to have a case study for each of the issues covered
Any volunteers for self-employment, consumer durables, transfers between households?
Results of OECD stocktake on STIK and imputed rent
Any other measurement issues to focus on?

8. Section C (i) Setting a poverty line
Absolute vs. Relative lines (intro)
Absolute poverty lines
Setting lines: cost of basic needs approach
Setting lines: subsistence minimum approach
Case study: official US measure
Case study: Canadian basic needs measure
Case study: Establishing an absolute poverty line in Italy
Case study: establishing an absolute poverty line in Russia
Questions/comments:
Cover other variants of approaches (e.g. JRF minimum income standard)?
Too many text boxes here? Can we use some of these examples in different ways/ to illustrate different points?

9. Section C (ii) Setting a poverty line
Relative poverty lines
Mean vs. Median
Case study: mean vs. Median in in EU-SILC
Level of threshold
Case study: Level of threshold in EU-SILC
Anchored poverty lines
Equivalence scales & economies of scale
Case study: Use of equivalisation in Russian poverty measures
Questions/comments:
Add Ravallion weakly relative poverty line
Expand section on equivalisation: more on different approaches and scales in use
Add section on adjusting for price differences over time, across countries, etc.
Case study examples where equivalisation is used?

10. Section D – Poverty indicators
Overview
Static measures
Headcount ratio
Poverty gap index
Squared poverty gap
Case study: Poverty indicators in Russia
Other measures (Watts, SST)
Dynamic measures
Persistent poverty
Case study: persistent poverty in UK and EU
Entry and exit rates
Case study: Poverty entry and exit rates in EU
Questions/comments:
Other measures to add?
Case studies?

11. Section E – Review of current practices
Comparability of poverty estimates
MDGs & impact on comparability
Eurostat's relative measures & their impact on comparability
Poverty measurement in the CIS
The effect of social policies on the poor
Metadata considerations
Tentative recommendations
Questions/comments:
Anything to add from templates submitted by NSIs?
How do we integrate NSI info with that from Eurostat, CISStat, etc. ?
What can we conclude about comparability?
What steps might be taken to enhance comparability?

12. Section F – Proposed indicators
'To be developed once initial draft of sections A-E in place'