| Code | SI.SPR.PC40.ZG |
| Indicator Name | Annualized average growth rate in per capita real survey mean consumption or income, bottom 40% of population (%) |
| Short definition | The growth rate in the welfare aggregate of the bottom 40% is computed as the annualized average growth rate in per capita real consumption or income of the bottom 40% of the population in the income distribution in a country from household surveys over a roughly 5-year period. Mean per capita real consumption or income is measured at 2021 Purchasing Power Parity (PPP) using the Poverty and Inequality Platform (http://www.pip.worldbank.org). For some countries means are not reported due to grouped and/or confidential data. The annualized growth rate is computed as (Mean in final year/Mean in initial year)^(1/(Final year - Initial year)) - 1. The reference year is the year in which the underlying household survey data was collected. In cases for which the data collection period bridged two calendar years, the first year in which data were collected is reported. The initial year refers to the nearest survey collected 5 years before the most recent survey available, only surveys collected between 3 and 7 years before the most recent survey are considered. |
| Long definition | The growth rate in the welfare aggregate of the bottom 40% is computed as the annualized average growth rate in per capita real consumption or income of the bottom 40% of the population in the income distribution in a country from household surveys over a roughly 5-year period. Mean per capita real consumption or income is measured at 2021 Purchasing Power Parity (PPP) using the Poverty and Inequality Platform (http://www.pip.worldbank.org). For some countries means are not reported due to grouped and/or confidential data. The annualized growth rate is computed as (Mean in final year/Mean in initial year)^(1/(Final year - Initial year)) - 1. The reference year is the year in which the underlying household survey data was collected. In cases for which the data collection period bridged two calendar years, the first year in which data were collected is reported. The initial year refers to the nearest survey collected 5 years before the most recent survey available, only surveys collected between 3 and 7 years before the most recent survey are considered. |
| Source | World Bank, Poverty and Inequality Platform. Data are based on primary household survey data obtained from government statistical agencies and World Bank country departments. Data for high-income economies are mostly from the Luxembourg Income Study database. For more information and methodology, please see http://pip.worldbank.org., World Bank (WB), uri: http://www.worldbank.org/en/topic/poverty/brief/global-database-of-shared-prosperity |
| Topic | Poverty: Shared prosperity |
| Dataset | WDI |
| Unit of measure | % |
| Periodicity | Annual |
| Reference period | 2010-2024 |
| Aggregation method | NA |
| Statistical concept and methodology | Methodology: The annualized growth rate in per capita real survey mean consumption of the bottom 40% is computed in the following steps. First, obtain the mean consumption or income levels of the bottom 40% of the survey distribution in two different periods. The two survey data sets should be comparable - that is, they use a similar method of sampling, collecting data, and constructing the welfare aggregate. Second, the rate of change in the survey mean values of the bottom 40% is annualized.
Statistical concept(s): The annualized growth rate in per capita real survey mean consumption or income of the bottom 40% measures the rate of change in per capita consumption or income of the bottom 40% in a year. |
| Development relevance | It measures improvements in the well-being of the poor, thus monitoring inequality within countries (SDG 10). Inequality undermines economic growth and development in the long run, limits the potential of growth to reduce poverty, and weakens social cohesion and trust. |
| Limitations and exceptions | Because household surveys are infrequent in most countries and are not aligned across countries, comparisons across countries or over time should be made with a high degree of caution. |
| Other notes | The comparability of welfare aggregates (consumption or income) for the chosen years T0 and T1 is assessed for every country. If comparability across the two surveys is a major concern for a country, the selection criteria are re-applied to select the next best survey year(s). Annualized growth rates are calculated between the survey years, using a compound growth formula. The survey years defining the period for which growth rates are calculated and the type of welfare aggregate used to calculate the growth rates are noted in the footnotes. |
| License URL | https://datacatalog.worldbank.org/public-licenses#cc-by |
| License Type | CC BY-4.0 |
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