Poverty Threshold and Incidence

In the first semester 2023, a family of five living in the different barangays in Kalinga needed around PhP 14,540 monthly to meet their basic food and non-food needs. This amount is the poverty threshold. This represent an increase of 12.5 percent from the first semester 2021 to first semester 2023.

Based on the poverty threshold, poverty incidence among Filipino families in Kalinga with income that are not sufficient to buy their minimum basic food and non-food needs was estimated at 6.3 percent. This is a decrease from 12.1 percent in first semester 2021.

Table 1. Poverty Threshold and Incidence: Kalinga
First Semester 2021 and 2023

In terms of poverty incidence among the population in Kalinga, 10 out of 100 individuals were living in poverty in first semester 2023. This is a decrease from 16 out of 100 individuals living in poverty in first semester 2021.

Food Threshold and Subsistence Incidence

On the other hand, a family of five living in the different barangays in Kalinga needed around PhP 10,155 per month to meet the family's basic food needs. This amount is the food threshold. This represent an increase of about 12.7 percent from the first semester 2021 to first semester 2023.

Based on the food threshold, the proportion of Filipino families in extreme poverty whose incomes were not sufficient to meet subsistence or basic food needs was estimated at 1.8 percent. This is a significant decrease from 3.6 percent in first semester 2021.

In terms of subsistence incidence among the population in Kalinga, 3 out of 100 individuals were living in poverty in first semester 2023. This is a significant decrease from about 5 out of 100 individuals in poverty in first semester 2021.

Table 2. Food Threshold and Subsistence Incidence: Kalinga,
First Semester 2021 and 2023

Other Poverty Measures

In addition to the above-mentioned indicators, PSA also releases other poverty measures which could also be used for designing poverty intervention programs such as the income gap, poverty gap and severity of poverty gap.

The income gap measures the average amount of income required by the poor in order to get out of poverty expressed in relation to the poverty threshold itself.

Table 3. Income Gap and Monthly Additional Income: Kalinga,
First Semester 2021 and 2023

The income gap was estimated at 20.0 percent in first semester 2023, which implies that, on average, a poor family with five members living in the different barangays of Kalinga need a monthly additional income of about PhP 2,908 to move out of poverty in first semester 2023. This amount increases from PhP 2,881 in first semester 2021. This particular measure can serve as a useful reference especially in determining the necessary budget to eradicate poverty in the province.

The poverty gap refers to the average income shortfall (expressed in proportion to the poverty threshold) of families with income below the poverty threshold divided by the total number of families.

The severity of poverty is the total of the squared income shortfall (expressed in proportion to the poverty threshold) of families with income below the poverty threshold, divided by the total number of families.

Table 4. Poverty Gap and Severity of Poverty: Kalinga,
First Semester 2021 and 2023

On the other hand, poverty gap was estimated at 1.3 percent in first semester 2023, which implies that each family has an income shortfall of 1.3 percent of the poverty threshold to eliminate poverty.

The squared poverty gap decreased from first semester 2021 to the first semester 2023.

TECHNICAL NOTES

Poverty Threshold – The minimum income required for a family or individual to meet the basic food and non-food needs (clothing, housing, transportation, health and education expenses).

Poverty Incidence – The proportion of people below the poverty threshold to the total population of Kalinga.

Food Threshold – The minimum income required for a family or individual to meet the basic needs and satisfy the nutritional requirements set by the Food and Nutrition Research Institute (FNRI) for economically and social productive.

Subsistence Incidence – The proportion of people in extreme or subsistence poverty.

Income Gap – Measures the average income required by the poor family in order to get out of poverty.

Poverty Gap – Refers to the income shortfall (expressed in proportion to the poverty threshold) of families with income below the poverty threshold, divided by the total number of families.

Severity of Poverty – The total of the squared income shortfall (expressed in proportion to the poverty threshold) of families with income below the poverty threshold, divided by the total number of families.

(SGD)
MARIBEL M. DALAYDAY
Chief Statistical Specialist