This poverty rate data shows what percentage of the measured population* falls below the poverty line. Poverty is closely related to income: different “poverty thresholds” are in place for different sizes and types of household. A family or individual is considered to be below the poverty line if that family or individual’s income falls below their relevant poverty threshold. For more information on how poverty is measured by the U.S. Census Bureau (the source for this indicator’s data), visit the U.S. Census Bureau’s poverty webpage.

The poverty rate is an important piece of information when evaluating an area’s economic health and well-being. The poverty rate can also be illustrative when considered in the contexts of other indicators and categories. As a piece of data, it is too important and too useful to omit from any indicator set.

The poverty rate for all individuals in the measured population in Champaign County has hovered around roughly 20% since 2005. However, it reached its lowest rate in 2021 at 14.9%, and its second lowest rate in 2023 at 16.3%. Although the American Community Survey (ACS) data shows fluctuations between years, given their margins of error, none of the differences between consecutive years’ estimates are statistically significant, making it impossible to identify a trend.

Poverty rate data was sourced from the U.S. Census Bureau’s American Community Survey 1-Year Estimates, which are released annually.

As with any datasets that are estimates rather than exact counts, it is important to take into account the margins of error (listed in the column beside each figure) when drawing conclusions from the data.

Due to the impact of the COVID-19 pandemic, instead of providing the standard 1-year data products, the Census Bureau released experimental estimates from the 1-year data in 2020. This includes a limited number of data tables for the nation, states, and the District of Columbia. The Census Bureau states that the 2020 ACS 1-year experimental tables use an experimental estimation methodology and should not be compared with other ACS data. For these reasons, and because data is not available for Champaign County, no data for 2020 is included in this Indicator.

For interested data users, the 2020 ACS 1-Year Experimental data release includes a dataset on Poverty Status in the Past 12 Months by Age.

*According to the U.S. Census Bureau document “How Poverty is Calculated in the ACS," poverty status is calculated for everyone but those in the following groups: “people living in institutional group quarters (such as prisons or nursing homes), people in military barracks, people in college dormitories, living situations without conventional housing, and unrelated individuals under 15 years old."

Sources: U.S. Census Bureau; American Community Survey, 2023 American Community Survey 1-Year Estimates, Table S1701; generated by CCRPC staff; using data.census.gov; (17 October 2024).; U.S. Census Bureau; American Community Survey, 2022 American Community Survey 1-Year Estimates, Table S1701; generated by CCRPC staff; using data.census.gov; (25 September 2023).; U.S. Census Bureau; American Community Survey, 2021 American Community Survey 1-Year Estimates, Table S1701; generated by CCRPC staff; using data.census.gov; (16 September 2022).; U.S. Census Bureau; American Community Survey, 2019 American Community Survey 1-Year Estimates, Table S1701; generated by CCRPC staff; using data.census.gov; (8 June 2021).; U.S. Census Bureau; American Community Survey, 2018 American Community Survey 1-Year Estimates, Table S1701; generated by CCRPC staff; using data.census.gov; (8 June 2021).; U.S. Census Bureau; American Community Survey, 2017 American Community Survey 1-Year Estimates, Table S1701; generated by CCRPC staff; using American FactFinder; (13 September 2018).; U.S. Census Bureau; American Community Survey, 2016 American Community Survey 1-Year Estimates, Table S1701; generated by CCRPC staff; using American FactFinder; (14 September 2017).; U.S. Census Bureau; American Community Survey, 2015 American Community Survey 1-Year Estimates, Table S1701; generated by CCRPC staff; using American FactFinder; (19 September 2016).; U.S. Census Bureau; American Community Survey, 2014 American Community Survey 1-Year Estimates, Table S1701; generated by CCRPC staff; using American FactFinder; (16 March 2016).; U.S. Census Bureau; American Community Survey, 2013 American Community Survey 1-Year Estimates, Table S1701; generated by CCRPC staff; using American FactFinder; (16 March 2016).; U.S. Census Bureau; American Community Survey, 2012 American Community Survey 1-Year Estimates, Table S1701; generated by CCRPC staff; using American FactFinder; (16 March 2016).; U.S. Census Bureau; American Community Survey, 2011 American Community Survey 1-Year Estimates, Table S1701; generated by CCRPC staff; using American FactFinder; (16 March 2016).; U.S. Census Bureau; American Community Survey, 2010 American Community Survey 1-Year Estimates, Table S1701; generated by CCRPC staff; using American FactFinder; (16 March 2016).; U.S. Census Bureau; American Community Survey, 2009 American Community Survey 1-Year Estimates, Table S1701; generated by CCRPC staff; using American FactFinder; (16 March 2016).; U.S. Census Bureau; American Community Survey, 2008 American Community Survey 1-Year Estimates, Table S1701; generated by CCRPC staff; using American FactFinder; (16 March 2016).; U.S. Census Bureau; American Community Survey, 2007 American Community Survey 1-Year Estimates, Table S1701; generated by CCRPC staff; using American FactFinder; (16 March 2016).; U.S. Census Bureau; American Community Survey, 2006 American Community Survey 1-Year Estimates, Table S1701; generated by CCRPC staff; using American FactFinder; (16 March 2016).; U.S. Census Bureau; American Community Survey, 2005 American Community Survey 1-Year Estimates, Table S1701; generated by CCRPC staff; using American FactFinder; (16 March 2016).

The Census Bureau determines that a person is living in poverty when his or her total household income compared with the size and composition of the household is below the poverty threshold. The Census Bureau uses the federal government's official definition of poverty to determine the poverty threshold. Beginning in 2000, individuals were presented with the option to select one or more races. In addition, the Census asked individuals to identify their race separately from identifying their Hispanic origin. The Census has published individual tables for the races and ethnicities provided as supplemental information to the main table that does not dissaggregate by race or ethnicity. Race categories include the following - White, Black or African American, American Indian or Alaska Native, Asian, Native Hawaiian or Other Pacific Islander, Some other race, and Two or more races. We are not including specific combinations of two or more races as the counts of these combinations are small. Ethnic categories include - Hispanic or Latino and White Non-Hispanic. This data comes from the American Community Survey (ACS) 5-Year estimates, table B17001. The ACS collects these data from a sample of households on a rolling monthly basis. ACS aggregates samples into one-, three-, or five-year periods. CTdata.org generally carries the five-year datasets, as they are considered to be the most accurate, especially for geographic areas that are the size of a county or smaller.Poverty status determined is the denominator for the poverty rate. It is the population for which poverty status was determined so when poverty is calculated they exclude institutionalized people, people in military group quarters, people in college dormitories, and unrelated individuals under 15 years of age.Below poverty level are households as determined by the thresholds based on the criteria of looking at household size, Below poverty level are households as determined by the thresholds based on the criteria of looking at household size, number of children, and age of householder.number of children, and age of householder.

In 2023, the around 11.1 percent of the population was living below the national poverty line in the United States. Poverty in the United StatesAs shown in the statistic above, the poverty rate among all people living in the United States has shifted within the last 15 years. The United Nations Educational, Scientific and Cultural Organization (UNESCO) defines poverty as follows: “Absolute poverty measures poverty in relation to the amount of money necessary to meet basic needs such as food, clothing, and shelter. The concept of absolute poverty is not concerned with broader quality of life issues or with the overall level of inequality in society.” The poverty rate in the United States varies widely across different ethnic groups. American Indians and Alaska Natives are the ethnic group with the most people living in poverty in 2022, with about 25 percent of the population earning an income below the poverty line. In comparison to that, only 8.6 percent of the White (non-Hispanic) population and the Asian population were living below the poverty line in 2022. Children are one of the most poverty endangered population groups in the U.S. between 1990 and 2022. Child poverty peaked in 1993 with 22.7 percent of children living in poverty in that year in the United States. Between 2000 and 2010, the child poverty rate in the United States was increasing every year; however,this rate was down to 15 percent in 2022. The number of people living in poverty in the U.S. varies from state to state. Compared to California, where about 4.44 million people were living in poverty in 2022, the state of Minnesota had about 429,000 people living in poverty.

The 2020-2021 School Neighborhood Poverty Estimates are based on school locations from the 2020-2021 Common Core of Data (CCD) school file and income data from families with children ages 5 to 17 in the U.S. Census Bureau’s 2017-2021 American Community Survey (ACS) 5-year collection. The ACS is a continuous household survey that collects social, demographic, economic, and housing information from the population in the United States each month. The Census Bureau calculates the income-to-poverty ratio (IPR) based on money income reported for families relative to the poverty thresholds, which are determined based on the family size and structure. Noncash benefits (such as food stamps and housing subsidies) are excluded, as are capital gains and losses. The IPR is the percentage of family income that is above or below the federal poverty level. The IPR indicator ranges from 0 to a top-coded value of 999. A family with income at the poverty threshold has an IPR value of 100. The estimates in this file reflect the IPR for the neighborhoods around schools which may be different from the neighborhood conditions of students enrolled in schools.All information contained in this file is in the public domain. Data users are advised to review NCES program documentation and feature class metadata to understand the limitations and appropriate use of these data.

VITAL SIGNS INDICATOR
Poverty (EQ5)

FULL MEASURE NAME
The share of the population living in households that earn less than 200 percent of the federal poverty limit

LAST UPDATED
January 2023

DESCRIPTION
Poverty refers to the share of the population living in households that earn less than 200 percent of the federal poverty limit, which varies based on the number of individuals in a given household. It reflects the number of individuals who are economically struggling due to low household income levels.

DATA SOURCE
U.S Census Bureau: Decennial Census - http://www.nhgis.org
1980-2000

U.S. Census Bureau: American Community Survey - https://data.census.gov/
2007-2021
Form C17002

CONTACT INFORMATION
vitalsigns.info@mtc.ca.gov

METHODOLOGY NOTES (across all datasets for this indicator)
The U.S. Census Bureau defines a national poverty level (or household income) that varies by household size, number of children in a household, and age of householder. The national poverty level does not vary geographically even though cost of living is different across the United States. For the Bay Area, where cost of living is high and incomes are correspondingly high, an appropriate poverty level is 200% of poverty or twice the national poverty level, consistent with what was used for past equity work at MTC and ABAG. For comparison, however, both the national and 200% poverty levels are presented.

For Vital Signs, the poverty rate is defined as the number of people (including children) living below twice the poverty level divided by the number of people for whom poverty status is determined. The household income definitions for poverty change each year to reflect inflation. The official poverty definition uses money income before taxes and does not include capital gains or non-cash benefits (such as public housing, Medicaid and food stamps).

For the national poverty level definitions by year, see: US Census Bureau Poverty Thresholds - https://www.census.gov/data/tables/time-series/demo/income-poverty/historical-poverty-thresholds.html.

For an explanation on how the Census Bureau measures poverty, see: How the Census Bureau Measures Poverty - https://www.census.gov/topics/income-poverty/poverty/guidance/poverty-measures.html.

American Community Survey (ACS) 1-year data is used for larger geographies – Bay counties and most metropolitan area counties – while smaller geographies rely upon 5-year rolling average data due to their smaller sample sizes. Note that 2020 data uses the 5-year estimates because the ACS did not collect 1-year data for 2020.

To be consistent across metropolitan areas, the poverty definition for non-Bay Area metros is twice the national poverty level. Data were not adjusted for varying income and cost of living levels across the metropolitan areas.

Historical chart and dataset showing U.S. poverty rate by year from 1963 to 2023.

LOW POVERTY INDEXSummary The low poverty index captures poverty in a given neighborhood. The index is based on the poverty rate (pv). The mean and standard error are estimated over the national distribution.The poverty rate is determined at the census tract level.InterpretationValues are inverted and percentile ranked nationally. The resulting values range from 0 to 100. The higher the score, the less exposure to poverty in a neighborhood.

Data Source: American Community Survey, 2011-2015. Related AFFH-T Local Government, PHA and State Tables/Maps: Table 12; Map 12. School Proficiency Index.

To learn more about the Low Poverty Index visit: https://www.hud.gov/program_offices/fair_housing_equal_opp/affh ; https://www.hud.gov/sites/dfiles/FHEO/documents/AFFH-T-Data-Documentation-AFFHT0006-July-2020.pdf, for questions about the spatial attribution of this dataset, please reach out to us at GISHelpdesk@hud.gov. Date of Coverage: 07/2020

In 2023, the poverty rate of the United States was around **** percent. Louisiana was the state with the highest poverty rate, at **** percent. Poverty rates in the United States are higher than in many parts of the world, and minority groups are much more likely to be living in poverty when compared to white people.

VITAL SIGNS INDICATOR
Poverty (EQ5)

FULL MEASURE NAME
The share of the population living in households that earn less than 200 percent of the federal poverty limit

LAST UPDATED
January 2023

DESCRIPTION
Poverty refers to the share of the population living in households that earn less than 200 percent of the federal poverty limit, which varies based on the number of individuals in a given household. It reflects the number of individuals who are economically struggling due to low household income levels.

DATA SOURCE
U.S Census Bureau: Decennial Census - http://www.nhgis.org
1980-2000

U.S. Census Bureau: American Community Survey - https://data.census.gov/
2007-2021
Form C17002

CONTACT INFORMATION
vitalsigns.info@mtc.ca.gov

METHODOLOGY NOTES (across all datasets for this indicator)
The U.S. Census Bureau defines a national poverty level (or household income) that varies by household size, number of children in a household, and age of householder. The national poverty level does not vary geographically even though cost of living is different across the United States. For the Bay Area, where cost of living is high and incomes are correspondingly high, an appropriate poverty level is 200% of poverty or twice the national poverty level, consistent with what was used for past equity work at MTC and ABAG. For comparison, however, both the national and 200% poverty levels are presented.

For Vital Signs, the poverty rate is defined as the number of people (including children) living below twice the poverty level divided by the number of people for whom poverty status is determined. The household income definitions for poverty change each year to reflect inflation. The official poverty definition uses money income before taxes and does not include capital gains or non-cash benefits (such as public housing, Medicaid and food stamps).

For the national poverty level definitions by year, see: US Census Bureau Poverty Thresholds - https://www.census.gov/data/tables/time-series/demo/income-poverty/historical-poverty-thresholds.html.

For an explanation on how the Census Bureau measures poverty, see: How the Census Bureau Measures Poverty - https://www.census.gov/topics/income-poverty/poverty/guidance/poverty-measures.html.

American Community Survey (ACS) 1-year data is used for larger geographies – Bay counties and most metropolitan area counties – while smaller geographies rely upon 5-year rolling average data due to their smaller sample sizes. Note that 2020 data uses the 5-year estimates because the ACS did not collect 1-year data for 2020.

To be consistent across metropolitan areas, the poverty definition for non-Bay Area metros is twice the national poverty level. Data were not adjusted for varying income and cost of living levels across the metropolitan areas.

These data identify persistent poverty counties for 10|20|30 funding formulas. In these counties, at least 20% of the population had incomes below poverty in 1997, 2007, 2017, and 2020 as estimated by the Small Area Income & Poverty Estimates (SAIPE) from the US Census Bureau. These data also indicate how many times a county met this threshold for these 4 periods (from 0 to 4). In addition, these data include the total number of census tracts and tracts consisting of 20% or more of the population with incomes below poverty (considered "high poverty" tracts) based on the 2015-2019 American Community Survey estimates. The data also include the percent in poverty and the population in poverty for these four periods. Please note that LINC also includes historical data on poverty from the American Community Survey and the 2000 and before decennial census. These estimates may differ. In addition, the choice of different time periods may lead to different results regarding persistent poverty counties and numbers of high poverty census tracts.

Atkinson (1987) proposed stochastic dominance criteria for analysing poverty which, under certain conditions, establish orderings of states for any poverty line and any poverty measure within given class, refocusing debate on the nature of the income distribution of the poor. Employing new empirical techniques, these criteria are implemented for the United States from 1970 to 1990 using the Panel Study of Income Dynamics. Results highlight the pivotal role of family size scale economies in consumption, indicate different experiences for white versus non-white groups and suggest that optimism over the progress of the poor is not warranted.

This map displays data from the Selected Economic Indicators (DP03) dataset from the 2010 American Community Survey 5-Yr Estimates, U.S. Census Bureau. Data is shown at the level of Census Tract, County, and Small Area (aggregation of Census Tracts developed by the New Mexico Department of Health). Measuring poverty is a topic of much current discussion. See the following links: A Different Way to Measure Poverty - http://www.sanders.senate.gov/imo/media/image/census.jpg"Few topics in American society have more myths and stereotypes surrounding them than poverty, misconceptions that distort both our politics and our domestic policy making."They include the notion that poverty affects a relatively small number of Americans, that the poor are impoverished for years at a time, that most of those in poverty live in inner cities, that too much welfare assistance is provided and that poverty is ultimately a result of not working hard enough. Although pervasive, each assumption is flat-out wrong." -Mark Rank, Professor of Social Welfare at Washington University: http://opinionator.blogs.nytimes.com/2013/11/02/poverty-in-america-is-mainstream/

This map was updated in April of 2022. To see the archived version of this map, click here: https://nmcdc.maps.arcgis.com/home/item.html?id=2e4c4c4cafcc49db80837f32912e66a5#overviewThis map displays data from the Selected Economic Indicators (DP03) dataset from the 2020 American Community Survey 5-Yr Estimates, U.S. Census Bureau. Data is shown at the level of Census Tract and County levels. Small Areas are not on this map at this time (aggregation of Census Tracts developed by the New Mexico Department of Health). Measuring poverty is a topic of much current discussion. See the following links: A Different Way to Measure Poverty - https://www.sanders.senate.gov/imo/media/image/census.jpg"Few topics in American society have more myths and stereotypes surrounding them than poverty, misconceptions that distort both our politics and our domestic policy making."They include the notion that poverty affects a relatively small number of Americans, that the poor are impoverished for years at a time, that most of those in poverty live in inner cities, that too much welfare assistance is provided and that poverty is ultimately a result of not working hard enough. Although pervasive, each assumption is flat-out wrong." -Mark Rank, Professor of Social Welfare at Washington University: https://opinionator.blogs.nytimes.com/2013/11/02/poverty-in-america-is-mainstream/

Out of all OECD countries, Cost Rica had the highest poverty rate as of 2022, at over 20 percent. The country with the second highest poverty rate was the United States, with 18 percent. On the other end of the scale, Czechia had the lowest poverty rate at 6.4 percent, followed by Denmark.

The significance of the OECD

The OECD, or the Organisation for Economic Co-operation and Development, was founded in 1948 and is made up of 38 member countries. It seeks to improve the economic and social well-being of countries and their populations. The OECD looks at issues that impact people’s everyday lives and proposes policies that can help to improve the quality of life.

Poverty in the United States

In 2022, there were nearly 38 million people living below the poverty line in the U.S.. About one fourth of the Native American population lived in poverty in 2022, the most out of any ethnicity. In addition, the rate was higher among young women than young men. It is clear that poverty in the United States is a complex, multi-faceted issue that affects millions of people and is even more complex to solve.

This map displays data from the Selected Economic Indicators (DP03) dataset from the 2010 American Community Survey 5-Yr Estimates, U.S. Census Bureau. Data is shown at the level of Census Tract, County, and Small Area (aggregation of Census Tracts developed by the New Mexico Department of Health). Measuring poverty is a topic of much current discussion. See the following links: A Different Way to Measure Poverty - http://www.sanders.senate.gov/imo/media/image/census.jpg"Few topics in American society have more myths and stereotypes surrounding them than poverty, misconceptions that distort both our politics and our domestic policy making."They include the notion that poverty affects a relatively small number of Americans, that the poor are impoverished for years at a time, that most of those in poverty live in inner cities, that too much welfare assistance is provided and that poverty is ultimately a result of not working hard enough. Although pervasive, each assumption is flat-out wrong." -Mark Rank, Professor of Social Welfare at Washington University: http://opinionator.blogs.nytimes.com/2013/11/02/poverty-in-america-is-mainstream/

The Bureau of the Census has released Census 2000 Summary File 1 (SF1) 100-Percent data. The file includes the following population items: sex, age, race, Hispanic or Latino origin, household relationship, and household and family characteristics. Housing items include occupancy status and tenure (whether the unit is owner or renter occupied). SF1 does not include information on incomes, poverty status, overcrowded housing or age of housing. These topics will be covered in Summary File 3. Data are available for states, counties, county subdivisions, places, census tracts, block groups, and, where applicable, American Indian and Alaskan Native Areas and Hawaiian Home Lands. The SF1 data are available on the Bureau's web site and may be retrieved from American FactFinder as tables, lists, or maps. Users may also download a set of compressed ASCII files for each state via the Bureau's FTP server. There are over 8000 data items available for each geographic area. The full listing of these data items is available here as a downloadable compressed data base file named TABLES.ZIP. The uncompressed is in FoxPro data base file (dbf) format and may be imported to ACCESS, EXCEL, and other software formats. While all of this information is useful, the Office of Community Planning and Development has downloaded selected information for all states and areas and is making this information available on the CPD web pages. The tables and data items selected are those items used in the CDBG and HOME allocation formulas plus topics most pertinent to the Comprehensive Housing Affordability Strategy (CHAS), the Consolidated Plan, and similar overall economic and community development plans. The information is contained in five compressed (zipped) dbf tables for each state. When uncompressed the tables are ready for use with FoxPro and they can be imported into ACCESS, EXCEL, and other spreadsheet, GIS and database software. The data are at the block group summary level. The first two characters of the file name are the state abbreviation. The next two letters are BG for block group. Each record is labeled with the code and name of the city and county in which it is located so that the data can be summarized to higher-level geography. The last part of the file name describes the contents . The GEO file contains standard Census Bureau geographic identifiers for each block group, such as the metropolitan area code and congressional district code. The only data included in this table is total population and total housing units. POP1 and POP2 contain selected population variables and selected housing items are in the HU file. The MA05 table data is only for use by State CDBG grantees for the reporting of the racial composition of beneficiaries of Area Benefit activities. The complete package for a state consists of the dictionary file named TABLES, and the five data files for the state. The logical record number (LOGRECNO) links the records across tables.

This map was updated in April of 2022. This is the archived version of this map. To see the new map, click here: https://nmcdc.maps.arcgis.com/home/item.html?id=501b02e45c0a47aa874ab4423d4c9f50#overviewThis map displays data from the Selected Economic Indicators (DP03) dataset from the 2010 American Community Survey 5-Yr Estimates, U.S. Census Bureau. Data is shown at the level of Census Tract, County, and Small Area (aggregation of Census Tracts developed by the New Mexico Department of Health). Measuring poverty is a topic of much current discussion. See the following links: A Different Way to Measure Poverty - https://www.sanders.senate.gov/imo/media/image/census.jpg"Few topics in American society have more myths and stereotypes surrounding them than poverty, misconceptions that distort both our politics and our domestic policy making."They include the notion that poverty affects a relatively small number of Americans, that the poor are impoverished for years at a time, that most of those in poverty live in inner cities, that too much welfare assistance is provided and that poverty is ultimately a result of not working hard enough. Although pervasive, each assumption is flat-out wrong." -Mark Rank, Professor of Social Welfare at Washington University: https://opinionator.blogs.nytimes.com/2013/11/02/poverty-in-america-is-mainstream/

This map displays data from the Selected Economic Indicators (DP03) dataset from the 2010 American Community Survey 5-Yr Estimates, U.S. Census Bureau. Data is shown at the level of Census Tract, County, and Small Area (aggregation of Census Tracts developed by the New Mexico Department of Health). Measuring poverty is a topic of much current discussion. See the following links: A Different Way to Measure Poverty - http://www.sanders.senate.gov/imo/media/image/census.jpg"Few topics in American society have more myths and stereotypes surrounding them than poverty, misconceptions that distort both our politics and our domestic policy making."They include the notion that poverty affects a relatively small number of Americans, that the poor are impoverished for years at a time, that most of those in poverty live in inner cities, that too much welfare assistance is provided and that poverty is ultimately a result of not working hard enough. Although pervasive, each assumption is flat-out wrong." -Mark Rank, Professor of Social Welfare at Washington University: http://opinionator.blogs.nytimes.com/2013/11/02/poverty-in-america-is-mainstream/

United States US: Gini Coefficient (GINI Index): World Bank Estimate data was reported at 41.500 % in 2016. This records an increase from the previous number of 41.000 % for 2013. United States US: Gini Coefficient (GINI Index): World Bank Estimate data is updated yearly, averaging 40.400 % from Dec 1979 (Median) to 2016, with 11 observations. The data reached an all-time high of 41.500 % in 2016 and a record low of 34.600 % in 1979. United States US: Gini Coefficient (GINI Index): World Bank Estimate data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United States – Table US.World Bank.WDI: Poverty. Gini index measures the extent to which the distribution of income (or, in some cases, consumption expenditure) among individuals or households within an economy deviates from a perfectly equal distribution. A Lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with the poorest individual or household. The Gini index measures the area between the Lorenz curve and a hypothetical line of absolute equality, expressed as a percentage of the maximum area under the line. Thus a Gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality.; ; World Bank, Development Research Group. Data are based on primary household survey data obtained from government statistical agencies and World Bank country departments. For more information and methodology, please see PovcalNet (http://iresearch.worldbank.org/PovcalNet/index.htm).; ; The World Bank’s internationally comparable poverty monitoring database now draws on income or detailed consumption data from more than one thousand six hundred household surveys across 164 countries in six regions and 25 other high income countries (industrialized economies). While income distribution data are published for all countries with data available, poverty data are published for low- and middle-income countries and countries eligible to receive loans from the World Bank (such as Chile) and recently graduated countries (such as Estonia) only. See PovcalNet (http://iresearch.worldbank.org/PovcalNet/WhatIsNew.aspx) for definitions of geographical regions and industrialized countries.

Financial inclusion is critical in reducing poverty and achieving inclusive economic growth. When people can participate in the financial system, they are better able to start and expand businesses, invest in their children’s education, and absorb financial shocks. Yet prior to 2011, little was known about the extent of financial inclusion and the degree to which such groups as the poor, women, and rural residents were excluded from formal financial systems. By collecting detailed indicators about how adults around the world manage their day-to-day finances, the Global Findex allows policy makers, researchers, businesses, and development practitioners to track how the use of financial services has changed over time. The database can also be used to identify gaps in access to the formal financial system and design policies to expand financial inclusion.