Relative Poverty
On average, how much higher is the material standard of living for the poorest 20% of people in the U.S. than the average person in Haiti?
Correct Answer
On average, the poorest 20% of people in the U.S. consume roughly 13 times more goods and services than the average person in Haiti. Personal consumption of goods and services is the World Bank's "preferred welfare indicator, for practical reasons of reliability and because consumption is thought to better capture long-run welfare levels than current income." Low-income households typically have much higher consumption than income, mainly due to unreported income. In 2015, 81% of households with income below $20,000 had air conditioning, 54% had a smartphone, and 63% had a clothes washer.
DocumentationInternational Living StandardsConsumption