Comparing the Monetary and Living Standards Approaches to Poverty Using the Australian Experience

Abstract This paper compares the monetary and living standards approaches to poverty using Australian data for period 2006–2017. The aim is highlight conceptual empirical strengths weaknesses of two identify similarities differences that emerge when both are applied examine what happened over a limited degree, why. acknowledged limitations estimating rates by comparing household income with line have degree been addressed developments in deprivation research generated estimates more directly related standards, democratic credible. But this approach also has limitations, so its growing popularity need not signify end studies. approaches, specific attention paid ensuring internally consistent time comparable at point time. Both show pattern modest improvement social disadvantage examined, but they reveal different aspects change. highlights role housing costs driving changes poverty, while nuanced explanation provides detailed insights. results suggest each positive play better understanding nature identifying factors change