Release Date :
Reference Number :
22CAR32-667
Poverty Threshold and Incidence
Based on the Preliminary Results of the Family Income and Expenditure Survey (FIES) in 2021, a family of five living in the different barangays in Kalinga needed around PhP 10,603 monthly to meet their basic food and non-food needs. This amount is the poverty threshold. This represent an increase of 5.06 percent from the year 2018 to year 2021.
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 5.6 percent. This is a decrease from 9.2 percent in 2018.
Table 1. Poverty Threshold and Incidence: Kalinga, 2018 and 2021
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First Semester
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Estimates
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Poverty Threshold per Family* per Month (PhP)
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Poverty Incidence among Families (%)
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Poverty Incidence among Population (%)
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2021
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10,063
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5.6
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8.3
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2018
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10,091
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9.2
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12.1
|
Source: Philippine Statistics Authority
*Refers to a family of five
In terms of poverty incidence among the population in Kalinga, 8 out of 100 individuals were living in poverty in year 2021. This is a decrease from 12 out of 100 individuals living in poverty in year 2018.
Food Threshold and Subsistence Incidence
On the other hand, a family of five living in the different barangays in Kalinga needed around PhP 7,592 per month to meet the family's basic food needs. This amount is the food threshold. This represent an increase of about 7.13 percent from the year 2018 to year 2021.
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 1.1 percent. This is a decrease from 1.5 percent in 2018.
In terms of subsistence incidence among the population in Kalinga, 2 out of 100 individuals were living in poverty in 2021. This has no significant decrease from 2018.
Table 2. Food Threshold and Subsistence Incidence: Kalinga, 2018 and 2021
| First Semester | Estimates | ||
| Poverty Threshold per Family* per Month (PhP) | Poverty Incidence among Families (%) | Poverty Incidence among Population (%) | |
| 2021 | 7,592 | 1.1 | 1.9 |
| 2018** | 7,051 | 1.5 | 2.2 |
Source: Philippine Statistics Authority
*Refers to a family of five
** Food Threshold are estimated using actual prices collected by PSA for the estimation of Consumer Price Index (CPI). In consonance with the updating of the market basket for the collection of prices for CPI, 2018 Poverty Statistics were revised accordingly.
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, 2018 and 2021
| Statistics | Estimates | |
| 2018** | 2021 | |
| Income Gap | 18.4 | 19.0 |
| Monthly additional income required by the poor in order to get out of poverty | 1,857 | 1,912 |
Source: Philippine Statistics Authority
**In consonance with the updating of the market basket for the collection of prices for CPI, 2018 Poverty Statistics were revised accordingly
The income gap was estimated at 19.0 percent in year 2021, 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 1,912 to move out of poverty in 2021. This amount decreases from PhP 1,857 in 2018. 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, 2018 and 2021
| Statistics | Estimates | |
| 2018** | 2021 | |
| Poverty Gap | 1.7 | 1.1 |
| Severity of Poverty | 0.5 | 0.3 |
Source: Philippine Statistics Authority
**In consonance with the updating of the market basket for the collection of prices for CPI, 2018 Poverty Statistics were revised accordingly.
On the other hand, poverty gap was estimated at 1.1 percent in year 2018, which implies that each family has an income shortfall of 1.1 percent of the poverty threshold to eliminate poverty.
The squared poverty gap decreased from year 2018 to the year 2021.
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.
MARIBEL M. DALAYDAY
Chief Statistical Specialist
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