71% of the people around the world live on less than $10 per day

The Pew Research Center recently posted a study analysing the distribution of income around the world. The study analysed data from World Bank and Luxembourg Income Study databases and assessed how many people in different countries fell into each of five income brackets in 2001 and 2011.

Pew defined their poor income bracket as people living on less than $US2 per day, in line with widely accepted definitions of global poverty. The low income bracket was made up of people living on between $US2 and $US10 per day, middle-income was between $US10 and $US20 per day (which includes Americans living at the US government’s official poverty line), upper-middle income was between $US20 and $US50 per day, and high income was over $US50 per day.

Because of the global nature of the study, Pew used “purchasing power parity” currency conversion rates, which reflect the differential cost of living between countries. Pew’s analysis showed that in 2011, 15% of the world population was living on less than $US2 per day, and 56% between $US2 and $US10. The proportion of the world living in extreme poverty fell almost by half between 2001 and 2011, with millions of people moving from the poorest income bracket into the low-income bracket:

For more, check out Pew’s report here.

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