Page 8 - WELFARE IN MALAYSIA ACROSS THREE DECADES: THE STATE OF HOUSEHOLDS 2020 PART 1

GLOSSARY

Labour income share : Measures how much of total national income is accrued to labour,
including compensation of employees and the incomes of the self-
employed.
Source: ILO Data Production Analysis Unit (2019)
Multidimensional : A measure that identifies multiple deprivations at the household
Poverty Index (MPI) and individual level in health, education and standard of living. The
MPI reflects both the incidence of multidimensional deprivation (a
headcount of those in multidimensional poverty) and its intensity
(the average deprivation score experienced by poor people).
Source: UNDP (2019)

Palma ratio : A measure of inequality between those in the top and bottom
income brackets, that is the income of the top 10% divided by the
income share of the bottom 40%.
Source: OECD (2020)

Poverty Line Income : A measure of income set as the minimum amount needed by a
(PLI) household to meet the basic needs of food and non-food for each of
its members. The Food PLI is defined as the amount of income
necessary to meet a household’s daily nutritional requirements as
determined by the Ministry of Health (MOH). The non-food PLI is
defined as the amount of income necessary to meet the minimum
requirements for items such as clothing, housing, transport and
other non-food needs by sex and age of a person, and is based on
the expenditure patterns of low-income households.
Source: DOS (2020b)

Relative poverty : A measure of deprivation based on a comparison with a certain
standard of living. The threshold can be defined as a certain
percentage under the median income. Individuals or households
below that threshold are then categorised as being in relative
poverty.
Source: DOS (2020b)

Social Accounting : A summary table for a given period that represents the production
Matrix (SAM) process, income distribution and redistribution, which occurs
between sectors, factors of production and actors within an
economic system as well as the rest of the world.
Source: Bellù (2012)

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