Poverty Gap Index Calculator

Actual equally weighted sample FGT1poverty-gap index under caller applicable income/line basis; negative incomes excluded in this restricted model, not whole-population or legal poverty status.

Description

The poverty-gap index averages normalized shortfalls below a poverty line across the entire sample.

The poverty-gap index averages normalized shortfalls below a poverty line across the entire sample.1

Observations above the line contribute zero under this convention.

When to use Poverty Gap Index Calculator

Use this tool to obtain observedPovertyGapIndex from the supplied records using the stated calculation. Establish the population, period, variable definitions, sample coverage and independently applicable instrument or calibration.

How to use Poverty Gap Index Calculator and understand its results

  1. Establish the population, period, variable definitions, sample coverage and independently applicable instrument or calibration.
  2. Enter observedCompatibleIncomes, callerPovertyLine, using the field meanings and rules below, then run the tool.
  3. Read result.observedPovertyGapIndex. Use the units and sign conventions below, and review any unknown records separately.
  4. Correct any reported input issue and run again. Before using a successful result, check the stated units, signs, reference scope and observation coverage.
Input fieldMeaningValue typeRequirement
observedCompatibleIncomesObserved compatible incomeslist of numberRequired
callerPovertyLineCaller poverty linenumberRequired

Require a nonempty nonnegative income sample with positive total and a positive poverty line. For every observation take max(0,1−income/line) and average across the full sample, including nonpoor observations as zero. An all-zero sample fails under the shared income guard. No survey weights are used.

povertyGapIndex=mean(max(0,1−income_i/povertyLine))

Use the matching field units and the exact boundary, ordering and reference rules above.

Output fieldMeaningValue type
resultCalculated observation or qualified referenceobject
result.observedPovertyGapIndexMean normalized shortfall below the supplied poverty line over the entire sample.number
json
{
  "input": {
    "observedCompatibleIncomes": [
      50,
      100,
      150
    ],
    "callerPovertyLine": 100
  },
  "output": {
    "result": {
      "observedPovertyGapIndex": 0.16666666666666666
    }
  }
}

Limitations and assumptions

Population definitions, survey design, calibration and observation coverage are independently established. A result describes the supplied record or conditional model without demonstrating causation, validating an instrument or supplying representative population evidence.

Missing required fields, unknown fields, wrong types and violated rules return input issues. Numeric values and outputs must be finite. Lists and matrices must be dense, without missing cells. Numeric lists allow at most 10000 entries, subject to the narrower lengths and code rules above. Extremely large composite outputs are rejected.

Alternative or Complementary methods

For a related step, use Poverty Headcount Ratio Calculator: A poverty headcount rate counts assessed people below an applicable poverty line. For a complementary comparison, use At-Risk-of-Poverty 60% Median Rate Calculator: A sixty-percent-median poverty comparison uses a supplied matched median and equivalized incomes.

References

  1. Poverty Gap Index Calculator — tool.io

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