Resource ID: INDIGO-ARES-0073
Link: https://www.povertyindex.org/about-ppi
The Poverty Probability Index (PPI) is a poverty measurement tool for organizations and businesses with a mission to serve the poor. The PPI is statistically-sound, yet simple to use: the answers to 10 questions about a household’s characteristics and asset ownership are scored to compute the likelihood that the household is living below the poverty line. With the PPI, organizations can identify the clients, customers, or employees who are most likely to be poor, integrating objective poverty data into their assessments and strategic decision-making.
Unlike other poverty measurement methods, the PPI was designed with the budgets and operations of real organizations in mind; its simplicity means that it requires fewer resources to use. The PPI is a set of 10 easy-to-answer questions that a household member can answer in 5 to 10 minutes. The questions are simple – “What material is your roof made out of? How many of your children are in school?” The scored answers provide the likelihood that the survey respondent’s household is living below the national poverty line and other internationally-recognized poverty lines. The PPI is country-specific and there are currently scorecards for 60 countries.
Impact goal: Development poverty reduction
Internal/external: Internal
Leader: Grameen foundation
Method: Surveys, Interviews, Observation
Output format: Non monetary quant index
Scale: Micro
Sourcing: Self driven
Time frame: Ongoing, Prospective, Retrospective
Type: Framework
Used in sectors: Igos, Charity, Development
Who: Third sector, Public sector
INDIGO data are shared for research and policy analysis purposes. INDIGO data can be used to support a range of insights, for example, to understand the social outcomes that projects aim to improve, the network of organisations across projects, trends, scales, timelines and summary information. The collaborative system by which we collect, process, and share data is designed to advance data-sharing norms, harmonise data definitions and improve data use. These data are NOT shared for auditing, investment, or legal purposes. Please independently verify any data that you might use in decision making. We provide no guarantees or assurances as to the quality of these data. Data may be inaccurate, incomplete, inconsistent, and/or not current for various reasons: INDIGO is a collaborative and iterative initiative that mostly relies on projects all over the world volunteering to share their data. We have a system for processing information and try to attribute data to named sources, but we do not audit, cross-check, or verify all information provided to us. It takes time and resources to share data, which may not have been included in a project’s budget. Many of the projects are ongoing and timely updates may not be available. Different people may have different interpretations of data items and definitions. Even when data are high quality, interpretation or generalisation to different contexts may not be possible and/or requires additional information and/or expertise. Help us improve our data quality: email us at indigo@bsg.ox.ac.uk if you have data on new projects, changes or performance updates on current projects, clarifications or corrections on our data, and/or confidentiality or sensitivity notices. Please also give input via the INDIGO Data Definitions Improvement Tool and INDIGO Feedback Questionnaire.