The PPI provides household-level poverty estimates. Can those be converted to individual poverty estimates?
Yes, you can estimate person-level poverty rates by taking a household-size-weighted average of the household-level poverty likelihoods. To do so, follow these steps:
- Multiply each household poverty likelihood by the number of household members.
- Add all products from step 1.
- Divide by the total number of individuals in question. Each country's PPI design memo provides more detail on this process and an example, typically found in section 2.2.