Section 2 Poverty Probability Index (PPI)

The Poverty Probability Index (PPI) is a poverty measurement tool for organizations and businesses with a mission to serve the poor. The PPI is statistically sound, yet simple to use: the answers to ten questions about a household’s characteristics and asset ownership are scored to compute the likelihood that the household is living below the poverty line. More information about PPI can be found at the Poverty Probability Index’s website.

2.1 PPI_SCORE

The sum of scores of response values for all ten PPI questions. Values range from 0 to 100. A lower score is associated with a higher likelihood of poverty.

2.2 PPI_PROB

The poverty likelihood value using the corresponding PPI look-up table

2.3 POVERTY1

The respondent’s PPI-based poverty level (two categories)

Levels:

• Above poverty line of USD 2.50/day
• Below poverty line of USD 2.50/day

2.4 POVERTY2

The respondent’s PPI-based poverty level (three categories)

Levels:

• Below poverty line of USD1.25/day
• Between poverty line of USD 1.25 -USD 2.50/day
• Above poverty line of USD 2.50/day