Poverty gap refers to the difference between the total population and those living in
poverty (or the difference between rich and poor). Essentially, it is used to measure the
concentration of poverty within a group of people or region. The poverty gap indicator
measures poverty using household income and household consumption. It is measured twice a year in September and April.
Additional meaning of Poverty Gap:
Poverty guidelines are set by the
United States Department of Health and Human Services (HHS). As of 2010, the poverty line set by HHS was at
$18,310 US Dollars (USD) for three-person families living in the contiguous 48
In 2005, the international poverty line was determined to be $1.25 USD per day, which would denote extreme poverty in the poorest of developing countries.