Poverty measures incorporating variable rate of alleviation due to population growth

If the absolute number of poor people goes up, but the fraction of people in poverty comes down, has poverty gone up or gone down? Issues like lack of scale homogeneity in resource allocation for poverty eradication lead practitioners and economists to have two different views of poverty when population size changes. This paper attempts to put these two conceptions of poverty into a common framework. We present an axiomatic development of a family of poverty measures, which is a generalization of the well known FGT class of measures, without a population replication axiom. This family has an intuitive link to standard measures, but it also allows intermediate positions between one or other of “the absolute numbers” or the “fraction in poverty” conception. We hope that this family will prove useful in empirical and policy work.