Decomposing the changes in poverty: Poverty line and distributional effects

When measuring poverty in developed countries, the line used to identify poor is usually relative and set as a percentage of median (or mean) total income. In consequence, when analyzed over period time, changes level depend on impact evolving standards. To eliminate this effect, sometimes, an anchored used. Furthermore, mean distribution inequality among may also affect levels. This note proposes decomposition sum four terms. The first two reflect living standards other measure effect distributional growth redistribution. will help policymakers implementation more specific antipoverty agenda. An application with data from European Union Survey Income Living Conditions shows potential proposed.