Question

what do you mean by poverty gap and square poverty gap?​

Answer 1

Answer:

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Explanation:

By squaring each poverty gap data, the measure puts more weight the further a poor person's observed income falls below the poverty line. The squared poverty gap index is one form of a weighted sum of poverty gaps, with the weight proportionate to the poverty gap

Answer 2

Answer:

By squaring each poverty gap data, the measure puts more weight the further a poor person's observed income falls below the poverty line. The squared poverty gap index is one form of a weighted sum of poverty gaps, with the weight proportionate to the poverty gap.

Explanation:

1. The poverty gap is the ratio by which the mean income of the poor falls below the poverty line. The poverty line is defined as half the median household income of the total population.
2. FGT(2), or the Squared Poverty Gap Index, measures the severity of poverty for each area. By squaring the poverty gap for each household/individual, this measure gives greater weight to those that fall far below the poverty line than those that are closer to it.

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