There is a wide agreement among poverty research community that conventional estimates of poverty (i.e., money-metric measures) do not take into account out of pocket payments of health care. Significant household health spending would overestimate total household expenditure, which results in an underestimation of poverty measured in terms of household expenditure. The present working paper uses Luxembourg Income Study Center data to explore the impact of household health payments on poverty and child poverty estimates in five middle-income countries (India, Mexico, South Africa, Russian Federation and Peru). It also extends this analysis to cover education expenditure as well and how it might exert similar effects on these poverty estimates.
poverty child poverty expenditure poverty out of pocket health expenditure out of pocket education expenditure middle-income countries