3.2 Poverty Measures (continued)
When
is increased over low values, the concentration effect causes the distribution of equivalent income to become less skewed as inequality falls. At the same time poverty rises, as a greater area of the distribution falls below the poverty line. The behaviour of the distribution of equivalent income,
, over low values of
is shown in Figure 25.
- Figure 25: Behaviour of the Frequency Distribution of Equivalent Income,
,
When
is Increased over Low Values 
Once reranking (associated with the negative correlation between equivalent income and household size, discussed above) takes effect, increases in
cause inequality to rise, and the distribution of equivalent income becomes increasingly skewed. Again, poverty rises as the distribution continues to shift leftwards. Figure 26 shows how the distribution of equivalent income changes as
is increased over higher values.
- Figure 26: Behaviour of the Frequency Distribution of Equivalent Income,
,
When
is increased over High Values 
- Figure 27 – Poverty Measures,

and 

