Table 8. Contributions to the Decline in the US$1.25-a-Day Poverty Headcount

||**Consump**|**tion-bas**|**ed meas**|**ure of w**|**elfare**|||**Income-**|Costa<br>**based m**|**easure of **|**welfare**|||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||Bangladesh|Ghana|Nepal|Peru|Moldova|Argentina|Brazil C|olombia|Rica<br>|Ecuador H|onduras|Panama P|araguay|
|**Poverty Headcount Rate (FGT0)**||||||||||||||
|Initial period|57.7|38.2|73.7|3.5|27.5|5.1|11.8|20.7|5.5|12.2|24.9|15.4|14.0|
|Final period|40.3|23.5|53.1|0.8|0.5|1.8|6.1|8.2|2.4|4.6|17.8|4.6|7.2|
|Total change|-17.4|-14.7|-20.6|-2.6|-27.0|-3.3|-5.7|-12.6|-3.1|-7.6|-7.1|-10.8|-9.3|
|**Decomposition of FGT0****_a/_**||||||||||||||
|Consumption-to-income ratio|-25.6|17.7|-6.9|-9.3|-20.2|||||||||
|Adult population|37.2|21.4|14.2|-14.9|5.7|20.0|11.2|5.2|7.1|19.0|41.4|4.0|34.7|
|Occupation share|20.5|-3.6|13.4|-3.1|-1.9|-5.7|-3.7|8.7|-2.8|-15.3|3.5|14.1|6.4|
|Labor income|60.2|49.6|50.4|115.7|27.7|14.3|44.7|48.7|26.7|50.3|51.5|39.9|47.8|
|Capital|7.8|5.0|5.9|1.4|0.0|-19.7|-4.4|0.4|10.7|-1.7|7.7|0.5|-1.3|
|Pension||||-4.7|35.8|29.2|6.2|-2.2|61.3|5.2|6.7|10.4|-1.4|
|Transfers|15.7|10.0|23.0|10.8|46.1|37.7|37.3|31.0|55.2|36.0|-20.8|31.8|9.8|
|Other nonlabor income|-15.9|||4.1|6.7|24.2|8.8|8.2|-58.2|6.5|10.0|-0.7|3.9|
|Total change|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|
|**Decomposition in FGT1****_b/_**||||||||||||||
|Consumption-to-income ratio|-60.6|0.8|-10.7|-44.0|--|||||||||
|Adult population|47.2|28.0|12.4|-40.5|--|16.5|7.9|-1.5|-2.0|13.3|52.6|2.3|30.8|
|Occupation share|25.3|-20.9|17.0|-12.5|--|-7.9|-11.4|5.2|-23.2|-20.2|1.0|8.0|3.3|
|<br>Labor income|99.1|70.9|54.0|176.4|--|8.4|28.1|51.0|6.6|41.6|41.9|42.4|43.9|
|Capital|4.9|6.5|4.8|2.4|--|-26.9|-9.0|-3.3|24.0|-4.4|15.9|-0.8|-0.8|
|Pension||||-9.6|--|24.5|0.6|-6.7|130.3|5.0|16.6|10.9|-0.4|
|Transfers|16.7|14.6|22.5|23.8|--|54.5|68.1|45.6|114.4|55.0|-42.7|42.0|17.6|
|Other nonlabor income|-32.6|||4.1|--|31.0|15.6|9.7|-150.1|9.7|14.7|-4.8|5.7|
|Total change|100.0|100.0|100.0|100.0|--|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|
|**Decomposition in FGT2****_c/_**||||||||||||||
|Consumption-to-income ratio|-107.9|-20.7|-17.8|-86.2|--|||||||||
|Adult population|59.8|36.6|10.3|-64.7|--|11.8|6.0|-4.4|-7.4|9.3|78.6|0.7|30.7|
|<br>Occupation share|30.4|-40.2|17.9|-27.7|--|-7.2|-14.4|3.0|-39.8|-23.1|-9.6|3.8|-0.5|
|Labor income|151.8|98.4|60.2|234.1|--|6.5|14.2|49.5|-12.8|35.0|21.6|42.4|39.1|
|Capital|1.5|6.0|4.7|4.4|--|-30.4|-11.2|-5.1|35.5|-7.0|32.2|-1.4|0.3|
|Pension||||-14.7|--|20.0|-2.3|-8.9|188.3|5.0|33.7|11.7|-0.3|
|Transfers|20.0|19.9|24.7|53.5|--|66.0|88.2|54.4|166.9|68.3|-78.7|50.4|23.7|
|Other nonlabor income|-55.7|||1.2|--|33.2|19.5|11.4|-230.8|12.5|22.2|-7.7|7.0|
|Total change|100.0|100.0|100.0|100.0|--|100.0|100.0|100.0|100.0|100.0|100.0|100.0|100.0|

_Source:_ Authors' calculations with data from RIGA for Ghana and Nepal, from household surveys for Bangladesh, Moldova, Romania, Peru, and Thailand, and from SEDLAC (CEDLAS and the World Bank) for countries with income-based measures of welfare.

_a/_ FGT0 refers to the Foster,Greer, and Thorbecke (1984) measure of the headcount index, which measures the proportion of the population that is counted as poor. _b/_ FGT1 refers to the Foster,Greer, and Thorbecke (1984) measure of the poverty gap index, which adds up the extent to which individuals on average fall below the poverty line, and expresses it as a percentage of the poverty line. 32 _c/_ FGT2 refers to the Foster,Greer, and Thorbecke (1984) measure of poverty severity, calculated as the poverty gap index squared, which implicitly puts more weight on observations that fall well below the poverty line.