An approach combining structural and machine-learning models
World Bank
2026-04-24
The findings, interpretations, and conclusions expressed in this presentation are entirely mine. They do not necessarily represent the views of the World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent. I gratefully acknowledge financial support from the UK government through the Data and Evidence for Tackling Extreme Poverty (DEEP) Research Programme.
Standard per-capita measures of global poverty assume:
Standard per-capita measures of global poverty assume:
But the evidence shows:
This is the first global study to integrate all three facts.
Millions living in extreme poverty, 2024
Household resources are not equally shared.
Each individual type \(i \in \{m, f, c\}\) receives a share \(\eta_i\) of total private resources \(C\):
\[ x_i = \eta_i C \tag{1} \]
Individual consumption \(x_i\) is not observed.
Instead, use assignable goods (e.g., clothing).
The individual’s budget share \(w_g\) on an assignable good \(g\) is:
\[ w_g = a_g + b_g \ln x_i \tag{2} \]
Combining (1) and (2), household budget share
\[ W_g = \eta_i \left[a_g + b_g \ln(\eta_i C)\right] \tag{3} \]
Differentiating (3) with respect to \(\ln C\) gives:
\[ \frac{\partial W_g}{\partial \ln C} = b_g \eta_i \tag{4} \]
Slope = preferences × resource shares
Under Similarity Across People (SAP), resource shares are proportional to Engel curve slopes:
\[ \eta_i = \frac{g_i}{g_m + g_f + g_c} \tag{5} \]
Higher spending response ⇒ larger share
Combine:
with
to construct an individualized global consumption distribution and re-estimate poverty.
| Country group | Women /Men | Children /Adult | Obs | Pop. (%) |
|---|---|---|---|---|
| East Asia & Pacific | 0.70 | 0.14 | 2 | 0.2 |
| Europe & Central Asia | 0.90 | 0.24 | 5 | 3 |
| Latin America & Caribbean | 0.88 | 0.45 | 11 | 77 |
| Middle East & North Africa | 0.72 | 0.20 | 4 | 42 |
| South Asia | 0.86 | 0.38 | 2 | 97 |
| Sub-Saharan Africa | 0.79 | 0.26 | 21 | 70 |
| Low-income countries | 0.81 | 0.27 | 15 | 61 |
| Lower-middle-income | 0.83 | 0.33 | 15 | 75 |
| Upper-middle-income | 0.84 | 0.40 | 13 | 21 |
| High-income countries | 1.03 | 1.03 | 2 | 2 |
| All | 0.83 | 0.34 | 45 | 42 |
Source: Aminjonov et al. (2025)
| Source | Description | Countries | Period | Variables |
|---|---|---|---|---|
| World Bank | Gender Data Portal | 217 | 1960–2025 | 1392 |
| World Bank | Poverty & Inequality Platform | 218 | 1977–2026 | 190 |
| Gethin & Saez (2025) | Hours worked by gender/age | 159 | 1900–2023 | 189 |
| Gallup Polls | Cultural values and beliefs | 165 | 2006–2024 | 135 |
| United Nations | Gender Development Index | 195 | 1990–2023 | 15 |
| World Values Survey | Cultural values and beliefs | 65 | 2017–2023 | 13 |
| Pew Research Center | Population shares of religions | 195 | 1990–2024 | 12 |
| World Bank | World Governance Indicators | 206 | 1996–2023 | 6 |
| World Economic Forum | Global Gender Gap Index | 157 | 2004–2021 | 5 |
| World Inequality Lab | Female labor income share | 211 | 1990–2023 | 1 |
| Jolliffe et al. (2025) | Food share of consumption | 167 | 2022–2022 | 1 |
| All data | 218 | 1900–2026 | 1959 |
\[ \hat{y}_i^{(t)} = \hat{y}_i^{(t-1)} + f_t(x_i) \tag{6} \]
The regularization term is given as: \[ \Omega(f_t) = \gamma T + \frac{\lambda}{2} \sum_{j=1}^{T} w_j^2 + \alpha \sum_{j=1}^{T} |w_j| \tag{7} \]
| Variable | Gain |
|---|---|
| Female GNI per capita (2021 PPP$) | 0.200 |
| Women’s employment rate | 0.106 |
| Female vocational enrollment (% of secondary) | 0.101 |
| Share of men who believe religion is important | 0.083 |
| Variable | Gain |
|---|---|
| GNI per capita, Atlas method (current US$) | 0.323 |
| Female road traffic injury mortality (per 100,000) | 0.126 |
| Life expectancy at birth, female (years) | 0.109 |
| Government effectiveness: estimate | 0.033 |
Note: Gain reflects each variable’s contribution to reducing prediction error.
\[ \frac{w_{shr}}{m_{shr}} = wm_{gap} \qquad\qquad \frac{c_{shr}}{0.5(m_{shr} + w_{shr})} = ca_{gap} \tag{8–9} \]
\[ T_{prv} = M \cdot m_{shr} + W \cdot w_{shr} + C \cdot c_{shr} \tag{10} \]
\[ m_{shr} = \frac{T_{prv}} {M + wm_{gap}\cdot W + 0.5\cdot ca_{gap}\cdot(1+wm_{gap})\cdot C} \tag{11} \]
\[ w_{shr} = wm_{gap}\cdot m_{shr} \qquad c_{shr} = 0.5\cdot ca_{gap}\cdot(1+wm_{gap})\cdot m_{shr} \tag{12-13} \]
Total household welfare is decomposed as:
\[ T = T_{pub} + T_{prv} \tag{13} \]
\[ T_{pub} = welf_{pc}\,(1 - pvt)\,N \tag{14} \]
\[ T_{prv} = Nwelf_{pc}\,pvt\,N/A \tag{15} \]
Note:
- Household size, \(N = W + M + C\)
- Adult-equivalent size, \(A = W + M + 0.6C\)
- \(welf_{pc}\): welfare per capita (2021 PPP$/day)
- \(pvt\): private share of household welfare
Allocation:
- Public consumption enjoyed by everyone
- Private consumption allocated via Eqs. (8-10)
Adjustments account for:
- Economies of scale
- Different needs of children and adults
Scaled, adult-equivalized poverty line \(z\) solves:
\[ F(z) = \int_0^z f(y(x))\,dx = P^0 \tag{16} \]
where:
- \(f(y(\cdot))\): transformed global distribution
- \(z\): equivalent poverty line
- \(P^0\): global per-capita poverty rate (11%)
Poverty lines used:
- International poverty line: $3.00 per capita
- Equivalent international poverty line: $7.50 per adult [60% for children (i.e. under 14)]
Global poverty looks different once we move from poor households to poor individuals.
The paper’s central conclusion is:
Even with these constraints, the paper provides a meaningful first global picture of poverty by age and gender under more realistic household assumptions.
Comments welcome
Samuel Tetteh-Baah
World Bank
stettehbaah@worldbank.org