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The poverty thresholds currently used in empirical research are
problematic in several respects. Their theoretical status is sometimes
unclear, because they refer to a specific policy interpretation or to a
different concept, such as inequality. In other cases there may be technical
reasons why they are difficult to apply in practical research situations. In
the light of these issues, SCP recently examined the merits of a proposed new
poverty threshold. This is based on norms for expenditure which are virtually
unavoidable in a modern society. In the lowest variant the threshold amount
is spartan, but adequate to enable a household to be run independently. The
highest variant also includes scope for some social participation.
The new criterion can be applied simply and consistently in practical
research. This publication illustrates this by presenting a historical
analysis of poverty rates in the Netherlands (1985-2005) based on the new
threshold amounts, two traditional Dutch poverty thresholds and the relative
income threshold as used by the European Union. An analysis of the views
prevailing among the Dutch population shows that the new threshold matches
dominant notions of poverty fairly well.