NATIONAL STATISTICS OFFICE OF MONGOLIA MONGOLIA POVERTY UPDATE 2022 Ulaanbaatar city 2025 MONGOLIA POVERTY UPDATE 2022 New Methods, New Insights Ulaanbaatar city 2025 © 2025 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work and does not assume responsibility for any errors, omissions, or discrepancies in the information, or liability with respect to the use of or failure to use the information, methods, processes, or conclusions set forth. The boundaries, colors, denominations, links/footnotes and other information shown in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. The citation of works authored by others does not mean the World Bank endorses the views expressed by those authors or the content of their works. Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privileges and immunities of The World Bank, all of which are specifically reserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Any queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522- 2625; e-mail: pubrights@worldbank.org. Cover design: Khanui Luvsandorj 2 Mongolia Poverty Update 2022: New Methods, New Insights FOREWORD (NSO) Mongolia has adopted the Sustainable Development Goals (SDGs) and its long-term development policy document “Vision 2050” in line with the call to “Leave No One Behind” to eradicate poverty, protect the planet and the environment, and provide opportunities for peace and prosperity. The SDGs are a set of goals to promote intergrated, balanced and sustainable development to achieve in the future, with three pillars: social, economic, and environmental. The basis for achieving the above goals is to end poverty and hunger in all its forms, respect human rights, and create equity. The National Statistics Office of Mongolia has been working on compilation of statistics on poverty, using internationally accepted methodologies to monitor implementation of the SDGs and the development policy of Mongolia to support evidence based decision making. The National Statistics Office conducts the “Household Socio-Economic Survey” to estimate poverty indicators based on population consumption data, and has been working closely with the World Bank since 2002 to develop and conduct poverty measurement methodologies. NATIONAL STATISTICS In Mongolia, the poverty line was estimated OFFICE CHAIRMAN annually until 2010, but since 2012, it has been possible to compare poverty over the long term by using the 2010 poverty line as a baseline and indexing it with price indices. B. BATDAVAA In accordance with the recommendations of the World Bank and international organizations, the poverty baseline is updated every ten years to reflect changes in the living standards and consumption patterns of the population. Thus, the poverty baseline was updated in 2022, based on the basic needs expenditure method with the technical assistance of the World Bank. The World Bank also released new best practices for Mongolia Poverty Update 2022: New Methods, New Insights 3 countries on the measurement of poverty and the We would like to thank Mr. Taehyun Lee, country consumption aggregate in 2022.” Based on these manager and Ms. Lydia Kim, economist of the updated guidelines, Mongolia’s “Methodology for World Bank Mongolia and poverty research Calculating Basic Poverty Indicators” was revised, experts and the staff of the World Bank for their reflecting improvements in the estimation of the technical support in estimating the survey data poverty line and adjustments for household size in accordance with international methodologies and composition. and for their collaboration in developing the data and report. This report reflects the main changes in the poverty line and consumption aggregate, as well as the poverty profile of the population as of 2022. We hope that the results of the study will be an important source of information for policymakers, international organizations, scholars, and researchers. 4 Mongolia Poverty Update 2022: New Methods, New Insights FOREWORD (WORLD BANK) Mongolia has made significant strides in economic development and poverty reduction in the past decade. As the country continues on its development path, ensuring that growth translates into shared prosperity for all citizens remains a key priority. The Mongolia Poverty Update Report provides an overview of poverty, inequality, and household welfare in 2022, offering valuable insights into the characteristics and challenges faced by the poor and vulnerable. As outlined in Vision 2050, Mongolia is committed to building a sustainable, diversified economy, enhancing quality of life, and reducing social and regional disparities. This report serves as a key tool in achieving these goals by providing a profile of the poor, helping to inform policies that further strengthen economic resilience and social inclusion. The findings of this report are the result of a strong collaboration between the National Statistics Office of Mongolia (NSO) and the World Bank. Based on data from the 2022 Household Socio- Economic Survey, the analysis provides evidence- based insights to support effective policymaking. The NSO’s leadership in conducting the survey and ensuring data integrity has been instrumental COUNTRY MANAGER FOR MONGOLIA in producing a robust assessment of Mongolia’s THE WORLD BANK socio-economic landscape. Key findings from the report highlight regional disparities in poverty rates, with rural areas experiencing significantly higher levels of poverty than urban centers. The report underscores the TAEHYUN LEE importance of education in breaking the cycle of poverty, as individuals with higher education levels have better employment prospects and higher incomes. Additionally, access to stable employment, basic services, and essential infrastructure remains crucial for improving household welfare and inclusive growth. Mongolia Poverty Update 2022: New Methods, New Insights 5 Addressing these disparities is key to achieving We extend our appreciation to the NSO for their Mongolia’s Vision 2050 goals of reducing poverty collaboration and dedication, as well as to all and fostering a more equitable society. stakeholders who contributed to this important effort. We look forward to continued partnerships The World Bank remains committed to that drive evidence-based policymaking and supporting Mongolia in its efforts to achieve its improve the welfare of Mongolian citizens. development objectives and reduce poverty. We hope this report serves as a valuable resource for policymakers, development partners, and civil society organizations working towards a more prosperous, inclusive, and resilient Mongolia. 6 Mongolia Poverty Update 2022: New Methods, New Insights CONTENTS FOREWORD (NSO) 3 FOREWORD (WORLD BANK) 5 LIST OF ABBREVIATIONS 8 LIST OF FIGURES 9 LIST OF TABLES 10 EXECUTIVE SUMMARY 14 CHAPTER 1: AN UPDATED METHODOLOGY TO ESTIMATE POVERTY IN MONGOLIA 17 CHAPTER 2: POVERTY IN 2022 33 CHAPTER 3: PROFILE OF THE POOR IN 2022 39 ANNEX: Annex A. Outliers and poverty line 57 Annex B. Additional statistical tables 59 Annex C. Standard errors and confidence intervals of poverty estimates 96 Mongolia Poverty Update 2022: New Methods, New Insights 7 LIST OF ABBREVIATIONS CBN Cost of Basic Needs CPI Consumer Price Index HSES Household Socio-Economic Survey MNT Mongolian tugrug NCA Nominal consumption aggregate NSO National Statistics Office OECD The Organization for Economic Cooperation and Development PAE Per adult equivalent PL Poverty line PPP Purchasing power parity PSU Primary sampling unit SDG Sustainable Development Goals 8 Mongolia Poverty Update 2022: New Methods, New Insights LIST OF FIGURES Figure 1. 1 Poverty estimation process 19 Figure 1. 2 Composition of the nominal consumption aggregate (NCA) 20 Availability of actual rent, self-reported rent, and property value data in the 2022 HSES by type of Figure 1. 3 26 dwelling Methodology used for estimating rent using the 2022 HSES based on dwelling type and data Figure 1. 4 27 availability Figure 1. 5 Composition of nominal consumption aggregate, 2022 (% of total consumption) 28 Figure 1. 6 International comparison of Mongolia’s national poverty lines 32 Figure 2. 1 Poverty indicators and share of total poor, national and by urban and rural areas (2022) 34 Figure 2. 2 Poverty indicators and share of total poor, by location (2022) 35 Figure 2. 3 Poverty indicators and share of total poor, by region (2022) 36 Figure 2. 4 Poverty rates at varying multiples of the poverty line (2022) 37 Figure 2. 5 International comparison of Mongolia’s national poverty lines 38 Figure 3. 1 Average monthly per adult equivalent consumption, and distribution of total consumption (2022) 40 Average monthly per adult equivalent consumption, and consumption composition, by component Figure 3. 2 41 (2022) Figure 3. 3 Composition of food consumption, by poverty status (2022) 42 Figure 3. 4 Composition of non-food expenditures (2022) 43 Figure 3. 5 Average household size and dependency ratio (2022) 44 Figure 3. 6 Poverty rate, by age group and number of children in the household (2022) 45 Figure 3. 7 Educational attainment and poverty rate among the population aged 25 and over (2022) 46 Figure 3. 8 Pre-primary enrollment and type of primary school (2022) 47 Figure 3. 9 Employment status among the working-age population (2022) 48 Figure 3. 10 Employment sector among workers aged 15+ (2022) 49 Figure 3. 11 Employment type and occupation among workers aged 15+ (2022) 50 Figure 3. 12 Average annual wages of salaried workers in million MNT (2022) 51 Figure 3. 13 Ownership of select durable assets (% of households), by consumption quintile (2022) 52 Figure 3. 14 Ownership of digital technologies (% of households), by consumption quintile (2022) 53 Figure 3. 15 Type of loan among households with loans (2022) 53 Figure 3. 16 Type of housing (% of population) by five consumption groups, 2022 54 Figure 3. 17 Access to basic services (% of population), 2022 55 Mongolia Poverty Update 2022: New Methods, New Insights 9 LIST OF TABLES Table 1. 1 Non-food expenditures excluded from the consumption aggregate 23 Table 1. 2 National per adult equivalent poverty lines in 2022 MNT 31 Table 2. 1 Inequality indicators (2022) 37 10 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX B. ADDITIONAL STATISTICAL TABLES Table B. 1 Poverty indicators based on different scales of the poverty line, 2022 59 Table B. 2 Poverty indicators, by region, 2022 59 Table B. 3 Poverty indicators, by location, 2022 60 Table B. 4 Poverty indicators, by quarter, 2022 60 Table B. 5 Poverty indicators, by household size, 2022 61 Table B. 6 Poverty indicators, by age of household head, 2022 61 Table B. 7 Poverty indicators, by gender of the household head, 2022 62 Table B. 8 Poverty indicators, by the level of education attainment of household head, 2022 62 Table B. 9 Poverty indicators, by the sector of employment of household head, 2022 63 Table B. 10 Poverty indicators, by the employment status of household head, 2022 63 Table B. 11 Livestock holdings, 2022 64 Table B. 12 Poverty indicators, by livestock ownership, 2022 65 Table B. 13 Poverty indicators, by ownership of land, 2022 65 Table B. 14 Poverty indicators, by possession of savings, 2022 66 Table B. 15 Poverty indicators, by type of loans, 2022 66 Table B. 16 Poverty indicators, by type of dwelling, 2022 67 Table B. 17 Poverty indicators, by access to basic services, 2022 67 Table B. 18 Poverty indicators, by type of infrastructure services, urban and rural, 2022 68 Table B. 19 Transfers and remittances received by households, 2022 69 Table B. 20 Poverty indicators, by receipt of private and public transfers, 2022 70 Table B. 21 Per adult equivalent monthly average consumption by consumption category 71 Per adult equivalent monthly average consumption by main consumption categories and by Table B. 22 72 poverty status in urban and rural areas Per adult equivalent monthly average consumption by consumption category, poverty status, and Table B. 23 73 location Per adult equivalent monthly average consumption by consumption category, poverty status, and Table B. 24 74 region Table B. 25 Per adult equivalent monthly average consumption by consumption decile (2022 MNT) 75 Mongolia Poverty Update 2022: New Methods, New Insights 11 Table B. 26 Share of total consumption by decile 75 Table B. 27 Poverty statistics by characteristics of the household head and urban and rural area 76 Table B. 28 Poverty profile by characteristics of the dwelling and urban and rural area 77 Table B. 29 Poverty profile by dwelling characteristics and location 78 Table B. 30 Poverty profile by dwelling characteristics and region 79 Table B. 31 Highest educational attainment of the population 18 years and older (%) 80 Table B. 32 Characteristics of population 18 years and older by education attainment (%) 81 Table B. 33 Primary, lower secondary, and upper secondary enrollment rates (%) 82 Table B. 34 Population reporting health complaints by location and region, 2022 83 Table B. 35 Population reporting health complaints by urban and rural areas and poverty status, 2022 84 Table B. 36 Population reporting health complaints by gender and poverty status, 2022 85 Table B. 37 Disabilities among population aged 18 and older (%) 86 Table B. 38 Disabilities among population aged 18 and older by urban and rural areas and poverty status 86 Table B. 39 Disabilities among population aged 18 and older by gender and poverty status 86 Table B. 40 Employment status among population aged 15 and older (%) 87 Labor force participation rate and unemployment rate among population aged 15 and older by Table B. 41 88 poverty status Labor force participation rate and unemployment rate among population aged 15 and older by Table B. 42 89 gender Distribution of workers aged 15 and older by poverty status, urban and rural area, employment Table B. 43 90 industry, sector, and occupation (% of workers) Poverty status among workers aged 15 and older by urban and rural area, employment industry, Table B. 44 91 sector, and occupation (% of total) Distribution of workers aged 15 and older by gender, urban and rural area, employment industry, Table B. 45 92 sector, and occupation (% of workers) Gender among workers aged 15 and older by urban and rural area, employment industry, sector, Table B. 46 93 and occupation (% of total) Table B. 47 Average Loan amount in last 12 months by loan type (thousand tugrug) 94 Table B. 48 Purposes of paid loans in last 12 months 95 Table B. 49 Durable goods ownership at household 95 12 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX C. STANDARD ERRORS AND CONFIDENCE INTERVALS OF POVERTYESTIMATESS Table C. 1 Poverty indicators by urban and rural areas 96 Table C. 2 Poverty indicators by location 97 Table C. 3 Poverty indicators by region 97 Table C. 4 Poverty indicators by quarter 98 Table C. 5 Poverty indicators by household head’s age group 98 Table C. 6 Poverty indicators by gender of the household head 99 Table C. 7 Poverty indicators by household head’s education attainment level 100 Table C. 8 Poverty indicators by possession of savings 101 Table C. 9 Poverty indicators by loan status 102 Table C. 10 Poverty indicators by type of dwelling 103 Table C. 11 Poverty indicators by access to improved water sources 104 Table C. 12 Poverty indicators by access to improved sanitation 105 Table C. 13 Poverty indicators by access to electricity 106 Table C. 14 Poverty indicators by access to improved water sources, improved sanitation and electricity 107 Mongolia Poverty Update 2022: New Methods, New Insights 13 EXECUTIVE SUMMARY This report provides an in-depth analysis the valuation of consumption flows from of poverty trends, household welfare, and durable goods and housing was refined to disparities across different population groups, align with international best practices. using the 2022 Household Socio-Economic Survey (HSES). The report incorporates an • Shift from per capita to per adult equivalents. updated methodology for measuring poverty and This adjustment better accounts for examines the socioeconomic factors influencing economies of scale and the varying needs of household welfare. household members based on age, making it particularly suitable for Mongolia, where METHODOLOGICAL UPDATES TO POVERTY relatively high non-food consumption shares ESTIMATION TO ALIGN WITH INTERNATIONAL enable households to benefit from greater BEST PRACTICES economies of scale. The 2022 poverty measurement methodology • Improved price adjustments to better includes key updates aimed at improving the capture regional differences in the cost of relevance, accuracy, and comparability of living. Price adjustments were expanded to poverty estimates in Mongolia. These updates include non-food goods in addition to food, were driven by several factors. First, the World reflecting Mongolia’s high share of non-food Bank introduced new guidelines for measuring consumption. poverty and inequality (Mancini & Vecchi, 2022), requiring methodological adjustments to align • Updated poverty line to reflect changes in with international best practices. Second, the living standards. Following international poverty line was revised to reflect changes in best practice of revising the national poverty livelihoods and consumption patterns among line every ten years, the National Statistics the population since the poverty line was last Office (NSO) and the World Bank jointly estimated in 2010. Third, the HSES questionnaire updated Mongolia’s poverty threshold. The was updated to enhance the measurement basket of goods and services used to define of household consumption, ensuring a more the poverty line was revised to reflect shifts in precise assessment of welfare. household needs and consumption patterns. Additionally, the method for calculating the Key updates in the 2022 poverty estimation non-food component was improved to better include: account for Mongolia’s relatively high share of non-food expenditures. • Improved consumption data in the HSES. The 2022 HSES introduced improvements RURAL AREAS HAVE HIGHER POVERTY RATES, to the questionnaire and data collection BUT THE MAJORITY OF THE POOR LIVE IN methods, enhancing the accuracy of food, URBAN AREAS non-food, and durable goods consumption data. In 2022, 27.1 percent of Mongolia’s population lived below the poverty line, meaning • Enhanced comprehensiveness of approximately 913,700 people struggled to consumption aggregate and valuation of meet their basic needs. The national poverty line essential components. The composition of in 2022 was 418,045 MNT per adult equivalent the consumption aggregate was reassessed per month, and households with consumption to ensure comprehensiveness. Additionally, below this threshold were classified as poor. 14 Mongolia Poverty Update 2022: New Methods, New Insights Poverty remains most prevalent in rural areas, budgets, making up 70 percent of total where 35.5 percent of the population is poor, consumption. Disparities in housing and durable compared to 23.0 percent in urban areas. The consumption are particularly pronounced across countryside has the highest poverty rate, reaching the welfare distribution. The wealthiest quintile 41.2 percent, which is significantly higher than in spends 11 times more on these categories than soum centers (10.6 percentage points lower), the poorest quintile. While poorer households aimag centers (15 points lower), and Ulaanbaatar allocate a larger share of their budgets to (nearly 20 points lower). Moreover, rural poor food and utilities, wealthier households invest households face greater economic hardship, as significantly more in education, health, and they tend to fall further below the poverty line durable goods, further deepening economic than their urban counterparts. inequality. Differences between rural and urban poor populations also highlight distinct policy Despite higher poverty rates in rural areas, the needs, as urban poor households struggle with majority of Mongolia’s poor—56.8 percent—live high energy costs, while rural poor households in urban areas, primarily due to the country’s high spend more on clothing and transportation. urban population concentration, particularly in Ulaanbaatar. The high concentration of poverty LARGER HOUSEHOLD SIZES AND HIGH in urban areas underscores the need for targeted DEPENDENCY RATIOS CONTRIBUTE TO interventions to address housing shortages, HIGHER POVERTY LEVELS limited access to basic services, and economic vulnerabilities in densely populated regions. Poor households tend to be larger and have more dependents, making them more HIGH VULNERABILITY AND INEQUALITY vulnerable to poverty. In 2022, poor households HINDER ECONOMIC MOBILITY AND INCLUSIVE averaged 4.2 members, compared to 3.2 among GROWTH the non-poor. The poorest 20 percent had 1.5 times more members than the wealthiest 20 A significant share of the population lives just percent, primarily due to a higher number of above the poverty line, leaving them highly children. These larger household sizes increase vulnerable to economic shocks. Approximately financial strain, making it more difficult to meet 13.9 percent—around 468,000 people—have basic needs and invest in education, healthcare, consumption levels between the poverty line and and other essential services. 1.2 times the threshold, meaning shocks such as unemployment, illnesses, and natural disasters Higher dependency ratios further contribute could easily push them into poverty. High rates to poverty, as poor households have more of vulnerability underscore the need for policies children per working-age adult. On average, that support both those already in poverty and the dependency ratio is 22.6 percent higher in those at risk of falling into it. poor households, meaning they have 14 more dependents per 100 working-age adults than Although inequality in Mongolia is lower than the non-poor. This reduces per capita income that of many other regional peers, it remains a and increases economic vulnerability, as fewer persistent challenge. The wealthiest 20 percent earners must support more dependents. Children of the population account for nearly 40 percent face the highest poverty risk, with 31 to 33 of total consumption, while the poorest 20 percent of those under 15 living in poverty, above percent account for only 8 percent. Inequality is the national average of 27 percent. particularly pronounced in urban areas, where the Gini index is 6.4 points higher than in rural areas. EDUCATION AND EMPLOYMENT GAPS WIDEN Despite its relatively low poverty rate, Ulaanbaatar ECONOMIC INEQUALITY AND INCREASE has the highest inequality in Mongolia, with a Gini POVERTY RISK index of 33.2. Limited education significantly increases the Non-food consumption dominates household risk of poverty, as poor individuals are more Mongolia Poverty Update 2022: New Methods, New Insights 15 likely to work in low-skilled, low-paying jobs. LIMITED OWNERSHIP OF PRODUCTIVE ASSETS Educational disparities between the poor and RESTRICTS ECONOMIC MOBILITY non-poor remain stark, especially at the tertiary level. Among those aged 25 and older, only 10 Poor households have significantly lower access percent of the poor hold a higher education to productive assets, which limits their ability degree, compared to 39 percent of the non-poor. to build financial stability, generate income, Poverty rates are highest among those with no and invest in long-term wealth accumulation. formal education (51 percent), whereas only 7 While ownership of basic household items such percent of individuals with tertiary education are as refrigerators and televisions is widespread, poor. This strong correlation between education disparities emerge with higher-value assets like and welfare underscores the need for policies cars, washing machines, and other electrical that enhance access to quality education at all appliances, which improve mobility, efficiency, levels. and convenience. Households in the wealthiest quintile are nearly four times more likely to own a Disparities begin in early childhood, as poor car than those in the poorest quintile. children are significantly less likely to attend kindergarten. Among children aged two to six, Poor and remote households also face only 45 percent of the poorest quintile are enrolled major barriers to digital connectivity, which in kindergarten, compared to 63 percent of the limits access to information, education, and wealthiest. In remote rural areas, limited access economic opportunities. While mobile phone to early childhood education due to geographic ownership is generally high, poorer households barriers further restricts opportunities, are 14 percentage points less likely to own one exacerbating long-term disadvantages. At than wealthier households. Only 2 percent of the later stages, poor students overwhelmingly poorest households own a computer, and just attend public schools, while wealthier families one in four have internet access, compared to increasingly opt for private education, reinforcing nearly eight in ten among the wealthiest. Much inequalities in academic achievement and of this disparity stems from weaker digital economic mobility. infrastructure in rural areas, where connectivity is limited, and digital devices are more expensive Employment opportunities also play a critical relative to household income. role in determining poverty and overall welfare. In 2022, poor individuals were 10.1 percentage The poor are significantly more likely to live points less likely to be engaged in income- in inadequate housing with limited access generating activities than the non-poor, with to essential services. In both rural and urban urban poor facing the largest employment gap areas, poor households overwhelmingly reside (14.8 percentage points). Poor workers are also in gers, with six in ten of the poorest urban more likely to be engaged in low-skill and informal households living in these traditional dwellings, employment, including agriculture, herding, and compared to just one percent of the wealthiest. unpaid family labor, while wealthier individuals Gers often lack reliable heating and sanitation, dominate professional and managerial positions. forcing households to rely on coal cookstoves for Significant wage disparities persist, with poor heating, which can be both costly and harmful to workers earning nearly half the wages of their health. In 2022, nine out of ten poor individuals non-poor counterparts. Even within the same lacked access to at least one essential service— education level, occupation, or sector, the poor clean drinking water, improved sanitation, or face structural barriers that limit their earnings sustainable heating. and career advancement, highlighting the need for policies that promote access to quality jobs, vocational training, and fair wages. 16 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 1: An updated methodology to estimate poverty in Mongolia CHAPTER: AN UPDATED 1 METHODOLOGY TO ESTIMATE POVERTY IN MONGOLIA INTRODUCTION TO POVERTY MEASUREMENT 17 OVERVIEW OF MONGOLIA’S 2022 POVERTY 18 ESTIMATION Construction of the nominal consumption 1 18 aggregate 2 Adjustments to obtain the welfare aggregate 27 3 Construction of the new poverty line 29 Mongolia Poverty Update 2022: New Methods, New Insights 17 CHAPTER 1: An updated methodology to estimate poverty in Mongolia INTRODUCTION TO POVERTY MEASUREMENT This report provides a detailed overview of Should income or consumption be the new methodology adopted to measure used to measure welfare? monetary poverty in Mongolia using the 2022 Household Socio-Economic Survey (HSES). A central debate in poverty measurement revolves The new methodology and new poverty line are around whether to use income or consumption aligned with recent international best practices, as the welfare aggregate. Income measures the as outlined in the World Bank’s new guidelines by total money earned by individuals or households Mancini & Vecchi (2022). from wages, transfers, and other sources, providing a straightforward way to assess What is poverty? earning capacity. However, in many developing Poverty is a multidimensional phenomenon where countries, especially those with high informality, individuals or households lack the resources to income can be very difficult to measure and meet basic needs and fully participate in society. subject to significant fluctuations due to factors While it encompasses non-monetary dimensions like seasonal work or economic shocks. such as social exclusion and inadequate access to essential services, it is often assessed through Consumption, which encompasses all goods and a monetary lens using measures of income or services used by a household, is often regarded consumption. The national poverty rate—based as a more stable and accurate measure of welfare on household consumption—serves as a key compared to income. It reflects actual living benchmark for tracking progress in poverty standards and is less volatile, as households reduction in Mongolia. tend to smooth consumption by borrowing or using savings during income fluctuations. The How is poverty measured? Permanent Income Hypothesis supports the use of consumption over income to measure long- Measurement of monetary poverty involves a term welfare, suggesting that households base systematic approach that generally follows three spending decisions on expected lifetime income key steps: rather than short-term variations. In many developing countries, consumption is used as 1. Choosing a welfare indicator: The welfare indicator represents the economic well-being the primary welfare aggregate, and this approach of individuals and households in monetary is also applied in Mongolia. terms. Commonly used indicators include household consumption and income. 2. Establishing a poverty line: The poverty line defines the minimum level of resources required for individuals or households to meet their basic needs. It can be set based on a specific basket of goods necessary for survival or a broader standard reflecting the overall cost of living. 3. Calculating poverty measures: Various poverty indicators such as the poverty headcount ratio (poverty rate), poverty depth, and poverty severity are used to assess the extent of poverty in a population. 18 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 1: An updated methodology to estimate poverty in Mongolia OVERVIEW OF MONGOLIA’S 2022 POVERTY ESTIMATION This section details the methodology for and cost-of-living differences to derive the estimating poverty using the 2022 HSES, welfare measure. The process continues with the outlined in Figure 1.1. It begins with constructing estimation of the poverty line and concludes with the nominal consumption aggregate, followed the calculation of poverty measures. by adjustments for household size, composition, Figure 1. 1 Poverty estimation process Adjustment for household size and composition Adjustments Nominal Welfare aggregate Poverty line Poverty and consumption calculation inequality aggregate measures Adjustment for differences in cost of living 1. CONSTRUCTION OF THE NOMINAL CONSUMPTION AGGREGATE The first and most critical step in consumed, including monetary expenditures, measuring poverty is constructing a consumption from income in kind (e.g., comprehensive welfare aggregate, homegrown food), and the value of owner- which in Mongolia is based on occupied housing. consumption. The consumption aggregate is designed to provide a reliable ranking of 2. Relevance: The NCA should capture actual households by their economic well-being. As consumption rather than expenditure. For outlined in Mancini & Vecchi (2022), the instance, purchased items are only relevant construction of the nominal consumption once consumed, and durable goods should aggregate (NCA) is guided by four key criteria to reflect their usage over time rather than ensure consistency and reliability in poverty their purchase cost. This criterion excludes measurement: non-consumption transactions like loan repayments or savings. 1. Comprehensiveness: The NCA should encompass all goods and services 3. Typical consumption: The NCA should Mongolia Poverty Update 2022: New Methods, New Insights 19 CHAPTER 1: An updated methodology to estimate poverty in Mongolia represent typical, long-term consumption items, such as subsidized or own-produced rather than extraordinary or irregular goods, analysts must estimate suitable expenditures. For example, lumpy expenses prices to align with the welfare reflected by like weddings or funerals are excluded as money-metric utility. they are not representative of a household’s typical living expenses. The nominal consumption aggregate is comprised of four main components as shown in 4. Valuation: Items in the NCA should ideally Figure 1.2) food consumption, 2) non-food, non- be valued at market prices that reflect the durable expenditures, 3) durable consumption consumer’s perspective. For non-market flows, and 4) housing. Figure 1. 2 Composition of the nominal consumption aggregate (NCA) Purchased food, own-produced food, Regularly purchased goods & services in-kind food, food away from home (e.g., utilities, clothing, education) Food Non-food Consumption Expenditures Rent (for renters) & estimated Estimated value of using durables rent (for owner-occupiers) such as cars, computers, electric Housing Durables appliances (rent) 1.1 Food consumption seven types of food consumed away from home, such as meals, snacks, beverages, and takeout. Food consumption data in the 2022 HSES While items like tobacco, narcotics, and alcohol are listed in the food module, they are excluded The 2022 HSES collects detailed information as food since they do not directly contribute to on food consumption by household members nutritional needs or physical sustenance, which over the past seven days, including quantities are primary objectives of food consumption and prices. Urban households record their in the context of measuring welfare. However, consumption using a seven-day diary, while adhering to the comprehensiveness criterion of rural households report using a seven-day recall the NCA, these items are included as non-food method. The survey captures all forms of food expenditures. consumption, whether purchased, gifted, or home-produced, as well as food consumed Methodology outside the home. The consumption aggregate includes 121 food items consumed at home and In Mongolia, household food consumption 20 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 1: An updated methodology to estimate poverty in Mongolia is comprised of two main components: food all the food purchased during the reference consumed at home and food consumed away period, particularly in the case of bulk purchases. from home. Food consumed at home includes These item-level values are then aggregated for purchased, gifted, and home-produced food. Its each household and annualized to derive the value is estimated by multiplying the quantities annual value of food consumed at home. Unlike consumed of each item i, during the past food consumed at home, food consumed away seven days by the unit price for that item for from home is calculated based on self-reported each household h (Equation 1).¹ Self-reported expenditures and the reported value of in-kind expenditures on food consumed at home are not consumption (Equation 2). used directly, as households may not consume Equation n Home food 365 (1) consumptionn = 7 ∑ (Consumed quantityih × Priceih) i=1 n Food away from = 365 (2) homen 7 ∑ i=1 ( Purchased ih + In kind ih ) The comprehensiveness criterion emphasizes prices. Since households in the same geographic the importance of including the value of both own- area, such as a Primary Sampling Unit (PSU), consumption and in-kind food in the consumption are likely to face similar market prices, purchase aggregate, in addition to purchased food. This is data from other, close by households are used to particularly relevant in countries where farming impute unit prices for households missing data. and/or herding is common, raising the question of Specifically, missing unit prices for a given item how to value such consumption. For purchased are replaced with the median unit price from non- food, the HSES collects data on expenditures missing observations at increasingly broader and quantities purchased over the past 30 days geographic levels within the same survey to calculate unit prices (commonly referred to as quarter. The process begins at the PSU level and, unit values) for each item, enabling valuation of if necessary, progresses to larger aggregations purchased food consumption. For households such as bag, soum, location, urban/rural area, consuming a mix of purchased, gifted, or own- aimag, and, ultimately, the national level.² produced food, these unit prices are used to Notably, about 25 percent of imputations use value the non-purchased components. However, the median unit value from the PSU level, while for households reporting only gifted or own- nearly 90 percent rely on data from the aimag consumed food for a specific item, the challenge level or a more granular level, ensuring that lies in assigning a value. valuations reflect localized market conditions as accurately as possible. Approximately 17 percent The valuation criterion specifies that all of observations with non-zero consumption consumption should ideally be valued at market quantities require such imputation. 1 Outliers in consumed quantities and unit prices are first identified using the methodology outlined in the Annex. 2 For imputation to occur at any level, at least three valid observations must be available. Mongolia Poverty Update 2022: New Methods, New Insights 21 CHAPTER 1: An updated methodology to estimate poverty in Mongolia 1.2 Non-food (non-durable) calculating non-food expenditures is relatively consumption straightforward. Annual expenditures are calculated for each item based on values reported Non-food consumption data in the 2022 HSES over a one-month or 12-month reference period, which are then aggregated at the household The 2022 HSES collects data on 306 distinct non- level to determine total non-food expenditures food items. To account for varying consumption (Equation 3). The choice of reference period is patterns, expenditure data are collected over two carefully aligned with consumption patterns, with reference periods: one month and 12 months. a 12-month reference period used for most items Given the diverse nature of non-food items, to capture infrequent purchases accurately, while the survey only collects information on total frequently purchased items like medicine and expenditures on non-food purchases and gifts; utilities rely on a one-month period to ensure no data is collected on the quantities of items. precision and consistency. Methodology Given that quantity and price data are not collected for non-food items in the 2022 HSES, Equation n (3) Nonfood consumptionh = ∑ (Purchased expendituresih × In kind expendituresih) i=1 A key question in calculating non-food regular living standards, leading to the exclusion consumption is determining what to include. of irregular or extraordinary (“lumpy”) expenses, The criteria of relevance and typical consumption such as those for weddings or funerals, which are play a central role in guiding these decisions. not representative of a household’s usual welfare. The relevance criterion emphasizes that only Additionally, donations to other households expenditures contributing to current welfare are excluded to avoid double-counting, as they should be included. For example, financial represent an outflow of resources that are investments, savings, and loan repayments, already captured as consumption by the receiving which reflect future or past consumption rather household. Similarly, taxes and levies are omitted than present welfare, are excluded. Similarly, because they are mandatory payments that do while durable goods such as electronic not reflect the consumption of goods or services, appliances, computers, or vehicles contribute to aligning with the relevance criterion. Together, household welfare, they typically last beyond the these principles ensure the consumption time horizon of a household survey. As a result, aggregate accurately represents current and it is inappropriate to exclude the consumption typical household welfare. flows from durables used during the reference period or to include their purchase value directly The inclusion of health expenditures in poverty as non-food consumption (see following section measurement is a topic of debate and is on measuring durable consumption). often influenced by the specific context and characteristics of each country. While health The “typical consumption” criterion focuses on expenditures may be seen as “regrettable ensuring the consumption aggregate reflects necessities” that are not always welfare- 22 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 1: An updated methodology to estimate poverty in Mongolia enhancing, Mancini & Vecchi (2022) highlight that relevance to improving welfare and supporting excluding health expenditures risks missing their their inclusion. In Mongolia, the elasticity of welfare-enhancing value, as better healthcare health expenditures in 2022 was estimated at can improve household well-being. However, 1.05, supporting their inclusion in the non-food including them could also overstate living consumption aggregate. standards for households struggling with high medical costs. One recommended approach In total, of 65 items in the HSES are excluded to assess whether health expenditures should from non-food consumption based on be included in the consumption aggregate recommendations from Mancini and Vecchi is to examine their elasticity relative to total (2022), leaving a total of 239 included items. expenditures. A higher elasticity (e.g., greater Table 1.1 lists the items excluded and the reason than 1) suggests that health expenditures for exclusion. increase with household wealth, indicating their Table 1. 1 Non-food expenditures excluded from the consumption aggregate Number of Number of items Non-food category items in 2022 included in the Reason for exclusion HSES NCA Clothing & footwear 45 45 Durables; lumpy expenditures; inputs for Household equipment/services 69 45 business Health 10 10 Transport 26 21 Durables Communication 22 14 Durables Recreation 30 27 Durables Education 8 8 Restaurants & hospitality 2 2 Personal care 27 24 Lumpy expenditures Insurance & other services 11 9 Not current consumption (financial services) Durables; lumpy expenditures (major housing Housing repair 13 5 repairs) Utilities 18 18 Alcohol & narcotics 11 11 Lumpy expenditures; gifts to other Holidays/celebrations 5 0 households; food Taxes 4 0 Not consumption Donations, transfers 3 0 Not consumption; double counting Total 304 239 Another important consideration for the and services is essential because they directly comprehensive measurement of non-food enhance household welfare by providing access consumption is estimating the value of subsidized to resources at reduced costs. Excluding these goods and services, such as food rations or subsidies can lead to an underestimation of subsidized utilities. Including subsidized good welfare levels, misrepresentation of poverty Mongolia Poverty Update 2022: New Methods, New Insights 23 CHAPTER 1: An updated methodology to estimate poverty in Mongolia trends, and incorrect household rankings, 1.3 Durable consumption flows ultimately distorting the understanding of living standards and the effectiveness of poverty Durable goods such as household appliances, reduction programs. computers, and cars offer a flow of services to households over an amount time that typically The valuation of subsidized utilities, such as extends several years, and for this reason, the electricity, coal, water, and district heating, in purchase price of durable goods cannot be the NCA is guided by the principle that all items added directly to the consumption aggregate. in the consumption aggregate should reflect Instead, only the value of services provided by market prices. For electricity, challenges include the good or “consumption flow” that households accounting for free electricity provided during receive from such assets in the survey reference the COVID-19 era, affecting household surveyed period should be included in the consumption in the first half of 2022, and the government’s aggregate. program offering free nighttime electricity in ger districts. A model-based imputation approach, Durable ownership data in the 2022 HSES following the methodology of Hentschel & Lanjouw (2000), is used to estimate electricity For durable items, the 2022 HSES collects consumption for households surveyed in the information on quantities owned, the years since first half of 2022. This estimation relies on data purchase, the original purchase price, and the from households surveyed in the second half of current value at which the household could sell the year, whose past-month expenditures were the item. In the case that the household owns not affected by the COVID-era free-electricity more than one asset of the same type, the HSES policy. To estimate subsidies provided under the records the number of items owned and asks free nighttime electricity policy in ger districts, households to report average values for the variation in electricity meter types—where some number of years owned, purchase values, and households do not receive free electricity at current values. night—is used to quantify the subsidy amounts. Methodology Several other utilities subsidized during COVID-19 To estimate the consumption flow households required adjustments to accurately estimate obtain from the use of durables, the user-cost consumption. For coal briquettes, which were approach recommended by Mancini & Vecchi subsidized at varying rates in 2021 and 2022, the (2022) is used. Consumption flows for 45 2022 HSES collected consumption quantities, durables listed in the HSES are calculated as the enabling the estimation of subsidies. These sum of two cost components: 1) the opportunity quantities were valued at market (non-subsidized) cost of consuming the durable over the course prices to reflect the full cost and accurately of the year (i.e., the real interest the households account for the benefit provided by the subsidy. foregoes by consuming rather than investing the For water and garbage collection, which were value of the durable); and 2) the decline in the provided free in 2021, annual consumption was value of the asset during the reference period, estimated using a one-month recall period, with which also represents foregone money for the probit modeling applied to predict consumption household. Based on the information collected likelihood for January 2022 households reporting in the 2022 HSES, it is possible to estimate no expenditures. Similarly, district heating, depreciation rate δ for each item i: characterized by significant seasonal variation, was imputed using a model-based approach Equation that accounted for differences in consumption 1 pt T between the heating season and other months. (4) δi = 1- pt-T 24 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 1: An updated methodology to estimate poverty in Mongolia where T is the age of the durable good in years; p_t for each item. The item-level depreciation rates is the current value of the good and p_(t-T) is the and the real interest rate at the time of the survey value of the good at the time of purchase. For each (r_t) are then used to determine the durable item, the median value is taken over non-missing consumption flow for each household h: observations to obtain a single depreciation rate Equation n (5) Durable consumption flownh = ∑ Quantityih × (pih×(rtih + δi)) i=1 1.4 Housing consumption flows including the number of walls and layers of insulation. Similar to durables, a dwelling offers households welfare that extends beyond the period of the Methodology survey, and it is thus not appropriate to include the purchase value of the dwelling directly in the In contexts with well-developed housing consumption aggregate. However, unlike most rental markets where all households rent their durable goods, the value of housing typically dwellings, actual rents can be directly used to increases over time. Literature shows that value housing consumption. However, in mixed rental markets offer a good approximation of housing markets—where some households rent the flow of services offered by one’s dwelling. In while others own or occupy their homes for Mongolia, however, very few households pay rent, free—a hedonic pricing model can be used to so other methods of estimating rental values for impute rents for owner-occupiers. This approach households that own or otherwise occupy their models rent based on dwelling characteristics dwelling without paying rent (henceforward such as location, area, materials, and access to “owner-occupiers”) must be explored. Special services, using data from market renters. The consideration must be made, in particular, for model then predicts rents for owner-occupied gers, which have unique characteristics different homes. A sufficient sample of market renters is from typical dwellings such as apartments or necessary for this method to produce reliable detached houses. estimates. Housing data in the 2022 HSES In cases where rental market data is sparse, surveys often ask households to provide “self- The 2022 HSES gathers detailed information reported” rents—an estimate of what they on housing ownership, including whether believe they would pay if they rented their current households own, rent, or occupy their dwelling dwelling. However, the reliability of these self- for free, and, if renting, the amount paid. It also reported values depends on households having collects data on various dwelling characteristics, a knowledge of local rental markets. In contexts such as the total area, materials used for walls, with very thin rental markets, self-reported values roof, and floor, as well as access to services like may be less reliable. electricity, running water, and heating. For ger dwellings, additional information is recorded, In the 2022 HSES, less than 3 percent of households report paying rent, indicating very 3 The real interest rate is obtained from the Bank of Mongolia. In 2022, the average real interest rate was 3.6%. Mongolia Poverty Update 2022: New Methods, New Insights 25 CHAPTER 1: An updated methodology to estimate poverty in Mongolia thin rental markets (Figure 1.3). Rental markets constraints, self-reported rents become essential are virtually non-existent for gers, which serve as for imputing rental values. About a quarter of the main dwelling for one-third of households, households provided self-reported rental values, and even among apartment dwellers, less which can be combined with market rental values than 7 percent report paying rent. Given these to estimate rents for owner-occupiers. Figure 1. 3 Availability of actual rent, self-reported rent, and property value data in the 2022 HSES by type of dwelling 100 Percent of households 80 60 40 20 0 National Ger Detached house Apartment Actual rent Self−reported rent Property value Source: Authors’ calculations based on the 2022 HSES The reliability of self-reported rents, however, Two separate methods, shown in Figure 1.4, are varies by dwelling type. For gers, for which rental thus considered for imputing rental values for markets are almost absent, self-reported values gers and non-gers (i.e., apartments and detached exhibit a multimodal distribution with no clear houses). patterns, indicating unreliability. Conversely, self-reported rents for non-ger dwellings, such • Non-ger dwellings – For non-ger dwellings, a as apartments and houses, align closely with hedonic pricing model using actual and self- actual market rents and show no systematic reported rents is used to estimate housing differences after accounting for size and quality. consumption flows based on dwelling Therefore, while self-reported rents may be characteristics, access to services, and used for apartments and detached houses, an location. The sample is split into training and alternative method is needed for gers. testing groups, and variables are selected through stepwise regression to maximize Fortunately, the HSES also collects property R-squared in the test sample. Predicted rents value data, which can be used to estimate rent are then calculated using Duan’s smearing values for ger households. Property values are estimator, applying these estimates to all reported more frequently than rental values, owner-occupiers. The model, which includes particularly for gers (Figure 1.3). The largely variables like dwelling type, location, living normal distribution of reported values further area, and utilities, achieves a high R-squared reinforces their reliability and suitability for of 0.6446. imputing rents for ger dwellings in the absence of valid rental estimates. • Ger dwellings – For ger dwellings, the rent- to-value approach outlined in Mancini & 26 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 1: An updated methodology to estimate poverty in Mongolia Vecchi is used. This approach— similar to the used, with missing or outlier values imputed user-cost approach for durables— estimates using a hedonic regression model. Aimag- implicit rental values as the opportunity cost level capitalization rates are calculated using of living in one’s home, using capitalization rental and property value data from non-ger rates (ratios of rental value to property value) dwellings, with median rates ranging from applied to self-reported property values. For 0.07 to 0.13. These rates are then applied to gers, self-reported property values (available property values to estimate implicit rents for for about 85 percent of ger households) are gers. Figure 1. 4 Methodology used for estimating rent using the 2022 HSES based on dwelling type and data availability Yes Apply cap rate to self-reported property value (28.9%) Ger Has non-mining property value? Apply cap rate to imputed property No value (5.9%) Dwelling type Yes Use actual rent (2.8%) Non-ger Market renter? Impute rent using hedoic regression No (62.4%) 1.5 Nominal consumption aggregate Mongolia’s larger non-food needs compared to other countries. For example, in Indonesia, The NCA comprises four components: food another upper-middle-income country, the consumption, non-food expenditures, durable poorest 20 percent allocate nearly 60 percent of consumption flows, and imputed rent. Non- their consumption to food, whereas in Mongolia, food, non-durable expenditures constitute the the figure is only 42 percent. largest share at 42 percent, while durables and housing account for 13 percent and 15 percent, respectively (Figure 1.5a). Food consumption makes up only 30 percent of total consumption, a relatively low share compared to other middle- income countries. The food share increases in more remote areas but remains below 40 percent. Even among the poorest 10 percent of households, food accounts for just 44 percent of consumption (Figure 1.5b), highlighting Mongolia Poverty Update 2022: New Methods, New Insights 27 CHAPTER 1: An updated methodology to estimate poverty in Mongolia Figure 1. 5 Composition of nominal consumption aggregate, 2022 (% of total consumption) Figure A. Composition of nominal consumption aggregate by location 100 Percent of total consumption 80 60 40 20 0 National Ulaanbaatar Aimag center Soum center Countryside Food Non−food Durables Housing Source: Authors’ calculations based on the 2022 HSES Figure B. Composition of nominal consumption aggregate by decile 100 Percent of total consumption 80 60 40 20 0 D1 D2 D3 D4 D5 D6 D7 D8 D9 D10 Food Non−food Durables Housing Source: Authors’ calculations based on the 2022 HSES 2. ADJUSTMENTS TO OBTAIN THE WELFARE AGGREGATE To derive the welfare measure from the households surveyed in different quarters or NCA, two key adjustments are geographic locations. Second, adjustments for necessary. First, adjustments for household size and composition are applied to differences in the cost of living account express the welfare aggregate in individual terms. for inflation during the survey period and regional This involves scaling consumption to account for price variations within Mongolia. These economies of scale and differing needs within adjustments ensure that the consumption values households, ensuring a fair comparison of reflect comparable purchasing power across welfare across households of varying sizes and 28 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 1: An updated methodology to estimate poverty in Mongolia demographic compositions. These adjustments and services are often shared among household allow reliable comparison of welfare across members. In Mongolia, the OECD-I scale households. (Equation 6) is used, which assigns a weight of 1.0 to the first adult (A) in a household, 0.7 to 2.1 Adjustments for differences in each additional adult (A), and 0.5 to each child household size and composition (K). The OECD-I scale adjusts for both household size and composition and economies of scale. Adjusting for household size and composition is essential to ensure that the consumption aggregate reliably reflects individual welfare. Equation While dividing total household consumption by (6) ESOECD-I = 0.3+0.7A+0.5K the number of members (per capita adjustment) is straightforward and aligns with international poverty lines, it overlooks key factors. Household 2.2 Adjusting for differences in cost members have differing needs based on age, sex, of living and other demographic characteristics, meaning that per capita adjustments can misrepresent To account for differences in the cost of living welfare levels. For instance, households with across time (during the survey period) and space more children may appear equally well-off as (across geographical areas of Mongolia), price those with more adults under per capita terms, deflators are calculated using data from the even though children typically have lower 2022 HSES. While the Consumer Price Index consumption needs. (CPI) could be used to adjust for regional and temporal price variations, it predominantly relies Economies of scale further complicate this on data from urban markets, failing to capture measure. Many non-food items, such as housing, price differences in rural areas where many poor utilities, and durable goods are considered households live. Additionally, the CPI reflects the public goods, or in other words, can be shared consumption basket of the average population, among members, unlike food, which is largely which often differs from that of poor households. private. In contexts like Mongolia with high Using household-reported price data from the non-food consumption shares, accounting for HSES provides a more accurate measurement, these economies of scale is crucial (Jolliffe & as it captures greater variation in the quality Tetteh Baah, 2022). Per adult equivalent (PAE) and types of items consumed, better reflecting adjustments address these issues by considering the living conditions of poorer households. both individual needs and shared consumption, Differences in prices and basket composition providing a more nuanced measure of welfare between the price index constructed for poverty while capturing differences in household measurement and the CPI can lead to slight composition and size. This makes PAE variations between the two. adjustments particularly relevant in Mongolia’s context. In Mongolia, where non-food consumption constitutes the majority of consumption even Equivalence scales are used to adjust household among the poor, it is essential to include non- size into adult equivalents, typically equating food items in the price index. However, the 2022 each household member to an adult male HSES collects only expenditure data for non-food for comparison. While there are numerous items, not prices. To address this, the price index equivalence scales, there is no universal incorporates data from both the 2022 HSES and consensus on which is “best,” as the choice often aimag-level monthly non-food price data from depends on the country context and the structure the NSO’s 2022 CPI survey. The methodology, of household consumption. In settings with high drawing on Mancini & Vecchi (2022) and Deaton non-food consumption, such as housing and & Zaidi (2002), follows four general steps: utilities, it is particularly important to account for greater economies of scale, as these goods Mongolia Poverty Update 2022: New Methods, New Insights 29 CHAPTER 1: An updated methodology to estimate poverty in Mongolia 1. Select the reference group – To ensure price 4. Construct price index – The Paasche index indices are relevant to the poor, the reference is calculated using the formula from Deaton group is defined as households in the 20th– & Zaidi (2002) shown in Equation 7. 50th percentile of the per adult equivalent NCA.4 Equation -1 po ∑ k 2. Define the consumption basket – Using the (7) pp h = wh k ph k reference group, food and non-food items are ranked in descending order by their average budget share, and the lowest ranked where w h k is the average consumption share of item k of household h in each aimag-quarter; w k o items cumulatively accounting for less than 10 percent of aggregate consumption are is the consumption share of item k at the national level; p k is the median price that household h in h excluded. This results in a basket of 64 items, each aimag-quarter pays for item k; and p k is the o including 27 food and 37 non-food items. median price of item k at the national level. 3. Determine level of aggregation – Official CPI data are available monthly by aimag. Two To construct the price ratios, median unit prices options are considered for calculating price from the food module and non-food item prices indices—aimag-month and aimag-quarter. from the CPI surveys are used. These price The aimag-quarter level is chosen due to ratios, combined with national and aimag-quarter a better balance of observations across budget shares calculated based on the reference cells. Adjustments are made for quarterly group chosen in step one, are then used to price differences within aimags, followed calculate the price indices. by adjustments for price differences across aimags, as recommended by Amendola et al. (2023). 3. CONSTRUCTION OF THE NEW POVERTY LINE After the consumption aggregate is line is rebased, poverty estimates using the old constructed, a poverty line is needed to and new lines cannot be directly compared, as determine the minimum level of the new line marks the beginning of a new series. consumption at which an individual is not considered poor. In Mongolia, an absolute In Mongolia, as in many other countries, the poverty line is used, which sets a fixed threshold cost-of-basic-needs (CBN) approach is used to representing the minimum consumption needed calculate the poverty line. This method identifies to meet basic human needs. This threshold is a basket of goods and services deemed adequate based on a specific year and adjusted for inflation for basic consumption needs and estimates over time until it is rebased, typically every 10 the cost of this basket. The basket is designed years, to reflect changes in living standards. The to capture two essential capabilities: obtaining previous poverty line in Mongolia was based in sufficient nourishment to maintain health and 2010, and it has now been rebased using 2022 accessing basic non-food goods and services data. It is important to note that when a poverty necessary for societal participation. The poverty line under the CBN approach thus comprises 4 Other percentile ranges or using per adult equivalent consumption does not significantly change the composition of the consumption basket or item weights. 30 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 1: An updated methodology to estimate poverty in Mongolia two components: the food poverty line, which 3. Calculate the food poverty line – The food addresses basic nutritional requirements, and a poverty line is determined by estimating the non-food component, which reflects basic non- total calories in the food basket and valuing food needs. it based on deflated national median prices from the 2022 HSES. A calorie threshold Methodology of 2,400 calories per day for an adult male, as recommended by the Ministry of Health, The process of estimating the poverty line using is used to scale the basket’s cost to meet the CBN approach can be summarized into five basic nutritional needs. This adjustment steps: ensures the food poverty line reflects the minimum expenditure required for adequate 1. Determine the reference group – To establish nourishment. In 2022, the daily PAE food an appropriate consumption basket, a poverty line is 5,603 MNT and the monthly reference group of households close to the food poverty line is 170,414 MNT (Table 1.2). poverty line is identified. Since the poverty line is initially unknown, the process begins 4. Estimate the non-food component – The with households in the second quintile of the non-food component is calculated using distribution of deflated PAE consumption. a modified approach based on Ravallion Iterative adjustments are made across all (1998), focusing on households near the food steps, recalculating the reference group using poverty line. Specifically, the average non-food the poverty line estimated in the previous consumption of households in the 10th–40th iteration. This process continues until the percentiles of deflated PAE consumption is poverty rate converges across successive used. While Ravallion’s original method was iterations. designed for countries with relatively high food shares, the HSES indicates significantly 2. Generate the food basket – A food basket higher non-food shares in Mongolia, making is created using items with the highest the Ravallion method less appropriate. consumption shares within the reference group, capturing approximately 90 percent of 5. Estimate the total poverty line – The total total food consumption. To ensure relevance poverty line is the aggregate of the food across Mongolia’s diverse geographic areas, poverty line and the non-food component. the basket is tailored to Ulaanbaatar, aimag In 2022, the daily PAE total poverty line is centers, soum centers, and the countryside, 13,744 MNT and the monthly food poverty requiring representation of 90 percent of food line is 418,045 MNT (Table 1.2). consumption in each location. As shown in Annex Table 1, the final basket includes 34 items. Using the reference group, average per adult equivalent daily quantities are calculated for each item. Table 1. 2 National per adult equivalent poverty lines in 2022 MNT Non-food category Daily Monthly Food poverty line 5,603 170,414 Non-food component 8,141 247,631 Total poverty line 13,744 418,045 Mongolia Poverty Update 2022: New Methods, New Insights 31 CHAPTER 1: An updated methodology to estimate poverty in Mongolia An essential check when rebasing the national appropriate given Mongolia’s status as an upper- poverty line is to assess whether it aligns with the middle-income country. As the country continues country’s income level. One way to evaluate this to grow, it is crucial to maintain a poverty standard is by comparing the new poverty line to those of that reflects its economic progress. Additionally, other countries with similar income levels. Using the new line is higher than the 2010 poverty line data from Jolliffe et al. (2022), Figure 6 shows adjusted for inflation to 2022 MNT, indicating an that Mongolia’s 2022 poverty line is slightly higher increase in living standards over the past decade. the upper-middle-income country international poverty line of $6.85 in 2017 PPP, which is Figure 1. 6 International comparison of Mongolia’s national poverty lines 64 National poverty line (2017 PPP), log scale 32 HIC: $24.35 2022 Poverty line 16 2010 Poverty line (inflated to 2022) 8 UMIC: $6.85 4 LMIC: $3.65 LIC: $2.15 2 1 2 4 8 16 32 64 128 256 GDP per capita per day (2017 PPP), log scale Lower−income (LIC) Lower−middle income (LMIC) Upper−middle income (UMIC) High income (HIC) Note: The 2010 poverty line has been inflated to 2022 MNT using national CPI. Implict per capita poverty lines are calculated using the methodology discussed in Jolliffe & Pyrdz (2016). Source: Authors’ calculations based on the 2022 HSES; Jolliffe, et al. (2022) 32 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 2. Poverty in 2022 CHAPTER: POVERTY IN 2022 2 This chapter presents an overview of poverty and inequality in Mongolia in 2022. Mongolia Poverty Update 2022: New Methods, New Insights 33 CHAPTER 2. Poverty in 2022 In 2022, the poverty rate in Mongolia was 27.1 Rural poverty in 2022 was substantially higher percent, with approximately 913.7 thousand than urban poverty, indicating a significant people living in poverty (Figure 2.1a). The disparity between rural and urban areas. The national poverty line in 2022 was 418,045 MNT poverty rate in rural areas was 35.5 percent, per adult equivalent per month, and households exceeding urban levels by 12.5 percentage points with monthly household consumption below this (Figure 2.1a). Both the depth and severity of threshold were classified as poor. In other words, poverty were also higher in rural areas, indicating 27.1 percent of Mongolia’s population struggled that not only are a greater share of people in rural to meet their basic needs, with their consumption areas living in poverty, but they also tend to be falling below the minimum required for essential further below the poverty line and face greater food and non-food expenses. The depth of economic hardship compared to their urban poverty,5 representing the average shortfall of counterparts. consumption below the poverty line, was 6.5 percent. Meanwhile, poverty severity,6 which gives greater weight to individuals further below the poverty line, stood at 2.3 percent. Figure 2. 1 Poverty indicators and share of total poor, national and by urban and rural areas (2022) a) Poverty indicators (%) b) Share of total poor (%) 40 35.5 100 30 27.1 80 43.2 23.0 60 20 40 7.9 56.8 10 6.5 5.8 20 2.3 2.1 2.6 0 0 National Urban Rural Poverty rate Poverty depth Poverty severity Urban Rural Source: Authors’ calculations based on the 2022 HSES 5 Poverty depth, also referred to as the poverty gap, measures the average shortfall of consumption below the poverty line across the population. It reflects the intensity of poverty by considering how far below the poverty line the average poor individual’s consumption falls. A higher poverty gap indicates deeper poverty. 6 Poverty severity, or the squared poverty gap, measures inequality among the poor by giving greater weight to those who are further below the poverty line. It captures both the depth and distribution of poverty, emphasizing the conditions of the poorest individuals within the population. Urban areas include the capital city of Ulaanbaatar and aimag 34 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 2. Poverty in 2022 The disparity in poverty is particularly Despite higher poverty rates in rural areas, pronounced in remote rural areas, with the more than half of the total poor population of poverty rate reaching 41.2 percent in the Mongolia (56.8 percent) reside in urban areas. countryside. Among the four locations7 in The higher urban share is primarily due to the Mongolia, the poverty rate is highest in the fact that to two-thirds of the country’s population countryside, exceeding that of soum centers by reside in urban areas, namely Ulaanbaatar and 10.6 percentage points, aimag centers by 15.0 aimag centers. By comparison, 43.2 percent percentage points, and Ulaanbaatar by 19.5 of the poor reside in soum centers and the percentage points (Figure 2.2a). Furthermore, countryside. The higher concentration of the the depth and severity of poverty are highest poor in urban areas underscores the importance in the countryside, with a poverty depth of 9.0 of addressing poverty in these densely populated percent and severity of 2.9 percent. On average, regions, especially the capital, where limited consumption among the poor in the countryside access to affordable housing and basic services is 2.0 to 3.3 percentage points lower than it is often exacerbate vulnerabilities. among the poor in other locations. Figure 2. 2 Poverty indicators and share of total poor, by location (2022) a) Poverty indicators (%) b) Share to total poor (%) 50 100 41.2 23.4 40 80 35.5 30.6 19.9 30 27.1 60 26.1 23.0 21.6 40 19.4 20 7.9 9.0 20 10 6.5 5.8 5.6 6.1 7.0 37.4 2.3 2.1 2.1 2.1 2.6 2.4 2.9 0 0 Total Ulaanbaatar Aimag Total Soum Countryside center center Ulaanbaatar National Urban Rural Aimag center Poverty rate Poverty depth Poverty severity Soum center Countryside Source: Authors’ calculations based on the 2022 HSES Poverty rates vary across regions, with poverty rates, exceeding the national average by Ulaanbaatar and the Central region having the 6.3–9.3 percentage points. While the Western lowest levels of poverty. At 21.6 percent and region records the highest overall poverty rate, 24.6 percent, respectively, poverty in the capital the Eastern region exhibits the greatest intensity and the Central region fall below the national of poverty, with a poverty depth of 8.8 percent average by 2.6–5.5 percentage points (Figure and a poverty severity of 3.2 percent. 2.3a). Conversely, the Western, Eastern, and Khangai regions exhibit considerably higher 7 Urban areas include the capital city of Ulaanbaatar and aimag centers, while rural areas include soum centers and the countryside. Mongolia Poverty Update 2022: New Methods, New Insights 35 CHAPTER 2. Poverty in 2022 Ulaanbaatar and the Khangai region account than other regions excluding Ulaanbaatar, is for the largest shares of Mongolia’s poor. home to nearly a quarter of those in poverty. High population concentration in Ulaanbaatar In contrast, the smaller population sizes in the means that the capital alone accounts for nearly Eastern and Western regions result in a lower two in five of the total poor despite a relatively share of the total poor, although poverty rates low poverty rate (Figure 2.3b). Meanwhile, the tend to be lower. Khangai region, which has a larger population Figure 2. 3 Poverty indicators and share of total poor, by region8 (2022) a) Poverty indicators (%) b) Share of total poor (%) 40 100 36.5 35.3 9.1 33.4 80 13.4 30 27.1 24.6 22.3 21.6 60 20 17.8 40 10 7.9 7.8 8.8 6.5 5.2 5.6 20 37.4 2.3 2.6 2.6 3.2 2.1 1.7 0 0 National Western Khangai Central Eastern Ulaanbaatar Ulaanbaatar Central Western Eastern Poverty rate Poverty depth Poverty severity Khangai Source: Authors’ calculations based on the 2022 HSES Vulnerability to falling into poverty is high in below the poverty line, the share of the population 2022, with significant shares of the population classified as poor drops progressively, reaching living just above the poverty line. At 1.2 times 14.4 percent at 0.8 times the poverty line. This the poverty line, an additional 13.9 percent of distribution underscores the precariousness the total population, or about 468,000 people, of many households’ economic situations would fall into poverty (Figure 2.4), indicating and highlights the importance of policies that that many households are only marginally better address not only those below the poverty line but off than those classified as poor. Sudden shocks also those vulnerable to falling into poverty. such as unemployment, illness, natural disasters, and increases in the price of essential goods and services could push these households into poverty. Conversely, as the threshold decreases 8 The Western region includes Bayan-Olgii, Govi-Altai, Zavkhan, Uvs, and Khovd aimags; the Khangai region includes Arkhangai, Bayankhongor, Bulgan, Uvurkhangai, Khuvsgul, and Orkhon aimags; the Central region includes Dornogovi, Dundgovi, Umnugovi, Govisumber, Selenge, Tuv, and Darkhan-Uul aimags; the Eastern region includes Dornod, Sukhbaatar, and Khentii aimags. 36 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 2. Poverty in 2022 Figure 2. 4 Poverty rates at varying multiples of the poverty line (2022) 50 44.2 41.0 40 37.4 34.1 30.5 30 27.1 23.9 20.6 20 17.4 14.4 11.7 10 0 1.25x 1.20x 1.15x 1.10x 1.05x Poverty 0.95x 0.90x 0.85x 0.80x 0.75x line Multiples of the poverty line Source: Authors’ calculations based on the 2022 HSES The Gini index in 2022 was 31.4, with higher percent more than the countryside. These spatial inequality in urban areas compared to rural disparities contribute considerably to national areas.9 In 2022, the wealthiest 10 percent of inequality. Moreover, there is significant variation the population consumed more than four times in consumption within areas, as reflected in as much as the poorest 10 percent (Table 2.1). the Gini index, which is 6.4 points higher in These gaps were partially driven by spatial urban areas than in rural areas, indicating wider disparities, both between and within urban and disparities within urban settings. Although rural areas. As detailed in the following chapter, Ulaanbaatar has a relatively low poverty rate, it consumption levels differ markedly between exhibits the highest inequality among all regions, urban and rural areas, with urban centers like with its Gini index being 4.7–8.1 points higher Ulaanbaatar on average consuming about 54 than in other regions. Table 2. 1 Inequality indicators (2022) Gini index P90/P10 ratio National 31.4 4.1 Urban 32.3 4.4 Rural 25.9 3.2 Location Ulaanbaatar 33.2 4.7 Aimag center 28.7 3.7 Soum center 26.3 3.3 Countryside 24.9 3.0 Region Western 25.1 3.1 Khangai 28.1 3.5 Central 27.0 3.4 Eastern 28.5 3.7 Ulaanbaatar 33.2 4.7 9 Adult equivalent consumption is used for poverty measurement to account for variations in consumption needs across age groups and economies of scale within households, while per capita consumption is applied for inequality analysis to reflect the actual distribution of resources among all individuals in a population, irrespective of household composition. The national average monthly consumption per capita is 481.4 thousand MNT. Mongolia Poverty Update 2022: New Methods, New Insights 37 CHAPTER 2. Poverty in 2022 INTERNATIONAL COMPARISONS National poverty lines are more appropriate for poverty line of $6.85 per day closely aligns with defining poverty within a country as they account Mongolia’s national poverty line, reflecting its for context-specific living standards, cost of upper-middle-income status, and corresponds to living, and consumption patterns, providing a a poverty rate of 22.1 percent. more accurate and tailored measure of poverty appropriate for the country’s level of development. International comparisons with other middle- In contrast, the World Bank’s international poverty income countries in Central and East Asia place lines¹0 serve as a standardized benchmark Mongolia in the middle range for poverty but for cross-country comparisons and global closer to the lower end in terms of inequality. assessments of poverty. Measured at the upper-middle-income poverty line, Mongolia’s poverty rate is similar to those of Using the upper-middle-income country poverty Vietnam and Uzbekistan, while it is significantly line of $6.85 per day (2017 PPP), Mongolia’s lower than countries like Lao PDR, Philippines, poverty rate stands at 22.1 percent. At the and Tajikistan (Figure 2.5a). Mongolia’s inequality extreme poverty line of $2.15 per day (2017 PPP), levels, as measured by the Gini index, are more the rate is low at just 0.2 percent. When measured similar to those of post-Soviet countries such as against the lower-middle-income poverty line Uzbekistan, Kazakhstan, and Tajikistan, which of $3.65 per day (2017 PPP), the rate increases tend to have lower inequality levels (Figure 2.5b). slightly to 2.4 percent. The upper-middle-income Figure 2. 5 International comparison of Mongolia’s national poverty lines a) Poverty rate (%), by country b) Gini index, by country Lao PDR (2018) 70.5% Lao PDR (2018) 38.8 Philippines (2021) 69.1% Philippines (2021) 37.3 Tajikistan (2015) 66.4% Viet Nam (2022) 36.1 Indonesia (2023) 61.8% Indonesia (2023) 36.1 Kyrgyz Republic (2022) 60.1% China (2021) 35.7 Mongolia (2022) 22.1% Thailand (2021) 34.9 Viet Nam (2022) 19.7% Tajikistan (2015) 34.0 Uzbekistan (2022) 17.3% Mongolia (2022) 31.4 China (2021) 17.0% Uzbekistan (2022) 31.2 Thailand (2021) 12.2% Kazakhstan (2021) 10.6% Kazakhstan (2021) 29.2 Turkiye (2021) 7.6% Kyrgyz Republic (2022) 26.4 Malaysia (2021) 2.3% Poverty rate at $6.85 in 2017 PPP Gini index Source: World Bank Poverty and Inequality Platform 10 International poverty rates are calculated using daily per capita consumption, enabling consistent comparisons of poverty indicators across countries. 38 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 3. Profile of the poor in 2022 CHAPTER: PROFILE OF THE POOR 3 IN 2022 This chapter presents the profile of the poor in 2022, examining their consumption patterns, education levels, employment status, asset ownership, and access to basic services. Mongolia Poverty Update 2022: New Methods, New Insights 39 CHAPTER 3. Profile of the poor in 2022 3.1. Poverty and consumption of the non-poor population is 2.5 times higher patterns than that of the poor population. In 2022, the non-poor spent an average of 784,000 MNT In 2022, the average monthly consumption per month, while the poor spent 318,000 MNT per adult equivalent is 658,000 MNT (Figure per month (Figure 3.1a), equivalent to 10,456 3.1a). As discussed in Chapter 1, household MNT per day. Consumption disparities across consumption comprises four main components: the population are stark, with the wealthiest 20 food consumption, non-food (non-durable) percent of the population spending an average expenditures, housing, and durable consumption. of 1.25 million MNT per month—4.3 times more On average, 29.5 percent of household than the poorest 20 percent, which spends consumption is spent on food, 41.7 percent on 290,000 MNT per month. These disparities result non-food expenditures, 16.1 percent on housing, in the top 20 accounting for a disproportionate and 12.6 percent on durable goods. share of national consumption, making up 39 percent of the total, while the poorest 20 percent The average per adult equivalent consumption account for just 8 percent (Figure 3.1b). Figure 3. 1 Average monthly per adult equivalent consumption, and distribution of total consumption (2022) a) Monthly per adult equivalent consumption (thousand MNT) b) Distribution of total consumption by consumption 1400 quintile (%) 1,254 1200 100 1000 80 39.3 529 784 745 800 721 658 566 60 600 435 22.6 400 318 290 40 200 17.0 20 0 12.8 National Urban Rural Non-poor Poor Q1 Q2 Q3 Q4 Q5 0 8.4 Q1 Q4 Q2 Q5 Poverty status Consumption quintile Q3 Note: Consumption quintiles are defined based on the distribution of per adult equivalent consumption across the population, with Q1 representing the poorest 20 percent and Q5 representing the wealthiest 20 percent. Source: Authors’ calculations based on the 2022 HSES Across the consumption distribution, equivalent to 464,000 MNT per month per households consistently allocate a greater adult equivalent, on non-food items, housing, portion of their spending to non-food goods and and durables (Figure 3.2). By comparison, only services, including housing and durable goods, 30 percent of total consumption, or 194,000 than to food. Nationally, households spend an MNT per month, is spent on food. While food average of 70 percent of their total consumption, accounts for a larger share of consumption 40 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 3. Profile of the poor in 2022 among poorer households (43 percent for the and housing varies significantly, with wealthier poorest quintile compared to 23 percent for households allocating a larger share of their the wealthiest quintile), non-food expenditures, consumption to these items. On average, the housing, and durables collectively outweigh food wealthiest 20 percent of the population spends 11 consumption, underscoring the important role of times more on durable goods and housing than non-food necessities in determining household the poorest 20 percent (Figure 3.2a). Specifically, welfare in Mongolia. the poorest group spends an average of 19,300 MNT per month per adult equivalent on housing While non-food expenditures make up the and 22,200 MNT on durable goods, whereas largest share of household budgets, durable and the wealthiest quintile spends 258,300 MNT on housing consumption are the primary drivers housing—13 times more—and 196,400 MNT on of welfare disparities. Non-food expenditures durable goods—9 times more than the poorest account for 39–44 percent of total consumption quintile. across the distribution, showing minimal variation (Figure 3.2b). In contrast, durable goods Figure 3. 2 Average monthly per adult equivalent consumption, and consumption composition, by component (2022) a) Per adult equivalent monthly consumption (MNT) b) Consumption composition (%) 1400 100 8 7 9 10 12 13 12 15 7 6 1200 10 196 80 18 13 19 18 23 1000 258 43 43 60 800 44 104 43 92 41 41 41 600 83 136 63 134 39 106 505 40 42 75 400 325 43 307 275 26 22 245 44 38 24 19 191 20 42 34 200 138 125 29 28 29 211 294 23 194 218 159 183 130 124 0 0 National Non-poor Poor Q1 Q2 Q3 Q4 Q5 National Non-poor Poor Q1 Q2 Q3 Q4 Q5 Poverty Poverty status Consumption quintile status Consumption quintile Food Non−food Housing Durables Source: Authors’ calculations based on the 2022 HSES Dietary diversity in Mongolia is limited, percent of their total food consumption to these particularly among poor and rural households. staples, reflecting a dependence on a narrow Nationally, 70 percent of total food consumption range of foods and limited dietary diversity. In consists of staples such as meat, flour, and contrast, the non-poor spend 68 percent of their dairy products (Figure 3.3). The poor allocate 81 food consumption on these items, with lower Mongolia Poverty Update 2022: New Methods, New Insights 41 CHAPTER 3. Profile of the poor in 2022 meat consumption among urban non-poor their total food consumption on dining out, households contributing to this difference. compared to just 1.4 percent among rural non- poor households. This pattern is likely influenced Dining out has become a notable trend among by urban livelihoods, where longer commutes, wealthier households in Mongolia, reflecting demanding work schedules, greater availability lifestyle changes. Non-poor individuals of restaurants and food vendors, and a cultural allocate an average of 11 percent of their food shift toward convenience encourage reliance consumption to food consumed away from on restaurants, food stalls, and take-out meals, home, including dining out (Figure 3.3). This making dining out increasingly common among share is significantly higher among urban non- the urban non-poor population. poor households, who spend 14.5 percent of Figure 3. 3 Composition of food consumption, by poverty status (2022) National 39 18 14 9 6 4 3 3 3 1 Non-poor 37 17 14 11 6 5 3 3 3 1 Poor 46 22 13 2 6 3 4 211 Urban non-poor 33 17 13 15 7 5 3 3 4 1 Rural non-poor 48 16 16 1 5 3 4 3 2 1 Urban poor 42 25 11 3 7 4 4 3 11 Rural poor 51 18 15 1 5 2 4 211 0 20 40 60 80 100 Meat Flour products Diary Food away from home vegetables Beverages Oils & fats Sweets Fruits & Nuts Other Source: Authors’ calculations based on the 2022 HSES Among non-food expenditures, clothing and as fuel, electricity, heating, and water (11.2 transportation account for the largest shares, percent)—personal care services (10.6 percent), making up nearly 40 percent of total non-food and health (9.7 percent). expenditures for the poor and the non-poor. On average, per adult equivalent consumption The composition of non-food spending of non-food goods and services amounts varies significantly across the consumption to 275,000 MNT per month, with 20 percent distribution, with poorer households spending allocated to ready-made clothing and 18 percent a larger share on clothing and utilities and to transportation services (Figure 3.4). Other allocating less to essential services such notable expenditures include utility fees—such as education and health. The wealthiest 20 42 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 3. Profile of the poor in 2022 percent of the population spends more than four Notable differences exist between rural and times as much on non-food expenditures as urban poor populations, underscoring the need the poorest 20 percent, highlighting significant for targeted policies tailored to specific areas. disparities. The most pronounced gap is in For urban poor households, utilities and energy education spending, where the wealthiest quintile costs represent a significant burden, comprising allocates an average of 9.5 percent of their total nearly a fifth of total non-food expenditures non-food expenditures, compared to only 3.7 (Figure 3.4). Conversely, rural poor households percent among the poorest quintile (Figure allocate a greater share of their non-food spending 3.4). In contrast, clothing and utilities make to clothing and transportation, with nearly half up a larger share of non-food expenditures for of their non-food expenditures devoted to these poorer households, reflecting the prioritization of goods and services. These patterns highlight the immediate and basic necessities over long-term distinct challenges faced by rural and urban poor investments in human capital. households and the importance of area-specific interventions to effectively reduce poverty. Figure 3. 4 Composition of non-food expenditures (2022) National 20 18 11 11 10 8 8 7 4 3 Non-poor 19 19 11 10 10 8 8 8 4 3 Poor 24 13 15 12 8 7 8 4 5 4 Q1 24 12 16 13 8 7 8 4 5 4 Q2 23 17 13 11 9 7 8 5 4 4 Q3 22 18 12 11 9 7 8 6 4 3 Q4 20 20 11 11 9 7 8 7 4 3 Q5 17 20 10 10 11 9 7 10 5 2 Urban non-poor 17 18 12 11 10 8 8 8 5 2 Rural non-poor 25 22 7 9 9 8 6 5 3 5 Urban poor 20 11 19 13 10 6 9 4 5 2 Rural poor 30 16 9 11 7 7 7 4 4 6 0 20 40 60 80 100 Clothing Transportation Utilities Personal care Health Housing equipment Communications Education Recreation Other Source: Authors’ calculations based on the 2022 HSES 3.2. Household demographic notably larger sizes, averaging 4.2 members characteristics compared to 3.2 members among non-poor households (Figure 3.5a). Generally, household Larger household sizes are correlated with size decreases as consumption levels increase, a higher likelihood of being poor. In 2022, indicating that household size is an important the average household size in Mongolia was determinant of welfare. For instance, the average 3.4 members. However, poor households had household size in the poorest 20 percent of Mongolia Poverty Update 2022: New Methods, New Insights 43 CHAPTER 3. Profile of the poor in 2022 households was approximately 1.5 times larger households generally have lower per capita than in the wealthiest 20 percent, with the number incomes compared to non-poor households, of children (aged 0–14) being 2.2 times higher in exacerbating their vulnerability. On average, the the poorest households. dependency ratio is 22.6 percent higher for poor than non-poor households, meaning that for every A higher number of dependents or children 100 working-age adults, the poor have 14 more per working-age adult is strongly correlated dependents than the non-poor (Figure 3.5b). This with being poor. The age structure of household difference is primarily driven by a higher number members is a key determinant of poverty. Poor of child dependents in poor households, whereas households tend to have more children, which wealthier households tend to have more elderly raises the dependency ratio and increases the dependents. Across the welfare distribution, the economic burden on working-age individuals, child dependency ratio declines sharply, driving a making it more difficult to meet basic needs lower overall dependency ratio. and invest in human capital. As a result, poor Figure 3. 5 Average household size and dependency ratio (2022) a) Average household size, number of children b) Dependency ratio 5 100 4.2 4.2 4 3.8 80 3.5 3.5 7 3.4 3.4 8 3.2 3.3 10 11 11 12 3 2.8 60 9 12 11 12 2 1.7 40 1.6 71 68 60 1.3 56 1.1 1.2 55 1.1 1.1 54 54 50 1.0 51 1.0 43 1 0.8 20 0 0 National Urban Rural Non-poor Poor Q1 Q2 Q3 Q4 Q5 National Urban Rural Non-poor Poor Q1 Q2 Q3 Q4 Q5 Poverty Poverty status Consumption quintile status Consumption quintile Household size Number of children (age 0-14) Child dependency ratio Elderly dependency ratio Note: The child dependency ratio is defined as the number of household members below the age of 15 to the number of working-age members aged 15 to 64. The elderly dependency ratio is defined as the number of members aged 65 and over to the number of working-age members. Source: Authors’ calculations based on the 2022 HSES 44 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 3. Profile of the poor in 2022 Households with a larger number of children face a higher risk of poverty, with poverty rates are significantly more likely to be classified as among those under 15 years old ranging from poor. Approximately 60 percent of all households 31 to 33 percent, exceeding the national average have children, and these households are about 12 of 27 percent (Figure 3.6b). In contrast, elderly percentage points more likely to be classified as individuals are more likely to live in wealthier poor compared to households without children households, potentially due to factors such as (Figure 3.6a). Each additional child in a household better access to healthcare during their lifetime increases the likelihood of poverty by an average or pension income. Consequently, the poverty of 6.4 percentage points. As a result, children rate among the elderly is relatively low. Figure 3. 6 Poverty rate, by age group and number of children in the household (2022) a) Poverty rate (%), by number of children in the b) Poverty rate (%) and number of poor (thousand), households by age group 40 38.0 35 33 34 120 32 31 30 30 28 27 100 30 26 25 27.7 Number of poor (thousand) 25 24 25.7 22 Poverty rate (%) 20 80 21.5 20 18 20 15.8 15 60 10 10 40 5 0 0 20 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60+ No children Any children 1 child 2 children 3+ children Poverty rate Number of poor (thousand) Note: Children are defined as aged 0 to 14. Source: Authors’ calculations based on the 2022 HSES 3.3. Education navigate and benefit from available resources and services. As such, education is a crucial People with little or no education are more factor in improving living standards and overall likely to work in low-skilled, low-paying jobs, welfare. making them more vulnerable to poverty. In contrast, higher levels of education not only The disparity in educational attainment between expand employment opportunities but also the poor and the non-poor is most pronounced enhance social participation, improve access at the tertiary level. Among the population aged to information, strengthen decision-making 25 and older, only one in ten poor hold a higher capabilities, and empower individuals to better education degree, significantly lower than the Mongolia Poverty Update 2022: New Methods, New Insights 45 CHAPTER 3. Profile of the poor in 2022 national average of 32 percent and the non-poor while only 7 percent of individuals with tertiary average of 39 percent (Figure 3.7a). The likelihood education are considered poor (Figure 3.7b). of tertiary completion increases sharply with This correlation highlights the critical role of higher consumption levels, indicating strong education as an investment in the future, offering correlation between educational attainment substantial benefits for an individual’s quality of and welfare. Poverty rates are highest among life, economic stability, and upward mobility. those with no formal education, at 51 percent, Figure 3. 7 Educational attainment and poverty rate among the population aged 25 and over (2022) a) Educational attainment (%) b) Poverty rate (%), by educational attainment 100 8 18 10 16 14 27 32 39 14 80 13 42 39 39 17 60 60 35 19 51 60 17 34 50 24 18 43 19 20 30 19 40 26 29 40 37 28 24 24 22 23 25 17 30 28 20 30 20 14 11 10 15 16 12 10 8 6 11 3 19 5 9 3 8 2 4 11 1 5 1 20 5 2 10 1 3 10 8 4 2 0 Ulaanbaatar 10 Non-poor 7 National Urban Rural Poor Q1 Q2 Q3 Q4 Q5 0 No education Primary Some secondary Secondary Vocational Tertiary Poverty status Consumption quintile No education Primary Some secondary Secondary Tertiary Vocational Source: Authors’ calculations based on the 2022 HSES Children from poorer households are more limited, often due to the significant distance likely to begin their education later and are between homes and education facilities. This significantly less likely to attend kindergarten geographic barrier further restricts opportunities compared to children from wealthier families. for early childhood education, exacerbating the Among children aged two to six, only 45 disadvantages faced by children from poorer and percent of those from the poorest 20 percent more isolated households. of households are enrolled in kindergarten, compared to 63 percent from the wealthiest Poorer children are also more likely to attend 20 percent. This disparity highlights unequal public schools, while wealthier households access to early childhood education, which is increasingly prefer private education. For critical for cognitive and social development and instance, nearly a quarter of primary- or secondary- has long-term effects on educational outcomes school students from the wealthiest 20 percent and future opportunities. In remote rural areas, of the population attends a private institution access to pre-primary education is particularly (Figure 3.8b). In contrast, less than one percent of 46 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 3. Profile of the poor in 2022 students from the poorest quintile attend private further deepens inequalities, as it provides better schools, reflecting the financial constraints and opportunities for academic success and social limited access to such institutions among lower- mobility, leaving poorer children at a significant income families. This growing reliance on private disadvantage. education among the wealthiest households Figure 3. 8 Pre-primary enrollment and type of primary school (2022) a) Pre-primary enrollment (% of students aged 2-6) b) Private school attendance (% of students attending primary or secondary school) 80 63 63 25 60 57 58 59 22 53 55 55 50 20 45 45 40 15 28 10 20 5 5 4 2 0 0.2 0.3 0 Q1 Q2 Q3 Q4 Q5 Poor center center National Non-poor Ulaanbaatar Countryside Soum Aimag National Q1 Q2 Q3 Q4 Q5 Poverty Consumption quintile Location status Source: Authors’ calculations based on the 2022 HSES Mongolia Poverty Update 2022: New Methods, New Insights 47 CHAPTER 3. Profile of the poor in 2022 3.4. Employment Instead, they were more likely to be inactive or unemployed,¹¹ signaling barriers to accessing Employment and the type of work people stable employment opportunities. The disparity engage in are critical determinants of poverty is particularly pronounced in urban areas, where and overall welfare. Stable, well-paying jobs labor force participation tends to be lower. In provide households with the income needed rural areas, higher self-employment in agriculture to meet basic needs, invest in education and and herding leads to relatively small differences healthcare, and build economic resilience. in labor force participation between poor and In contrast, informal, low-paying, or unstable non-poor individuals. However, in urban areas, employment increases economic vulnerability, the gap is considerably wider, at 14.8 percentage making it harder for households to improve their points, suggesting that the urban poor may face propspects for upward mobility. greater difficulties in securing jobs or entering the labor market. In 2022, the poor—particularly the urban poor— are significantly less likely to be engaged Unemployment is strongly associated with a in income-generating activities compared higher risk of poverty. Among households where to their non-poor counterparts. Among the the head is unemployed, the poverty rate is 46.2 working-age population of age 15 or greater, the percent (Figure 3.9b), significantly higher than for poor were 10.1 percentage points less likely to households with an employed or inactive head.¹² be employed than the non-poor (Figure 3.9a). This difference suggests that while employment Figure 3. 9 Employment status among the working-age population (2022) a) Employment status (% of population aged 15+) b) Poverty rate (%), by employment status of household head 100 47 49 43 45 54 55 49 48 45 41 80 50 46 60 1 1 1 1 1 2 1 1 3 40 3 40 51 55 59 30 25 49 54 49 51 54 20 44 42 20 20 0 10 Non-poor National Urban Rural Poor Q1 Q2 Q3 Q4 Q5 0 Employed Unemployed Inactive Poverty status Consumption quintile Employed Unemployed Inactive Source: Authors’ calculations based on the 2022 HSES 11 An unemployed person is a person of working age who has not worked in the past 7 days, is looking for work, and is available for work. 12 An unemployed person is a person of working age who has not worked in the past 7 days, is looking for work, and is available for work. 12 Households with inactive heads also experience higher poverty rates, though to a lesser extent than those with unemployed heads, as inactive individuals are often retirees who may have pensions or other forms of financial support. 48 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 3. Profile of the poor in 2022 provides some level of economic security, the rural areas, particularly in the countryside, where type and stability of employment matter greatly, employment is overwhelmingly agricultural. as low-quality or informal jobs may still leave The share of workers employed in agriculture households vulnerable to poverty. declines sharply across consumption groups, with only 6 percent of the wealthiest 20 percent Significant differences in employment sectors working in the sector. As living standards improve exist between poor and non-poor workers, and consumption rises, employment shifts away with the poor more likely to be engaged in from agriculture toward higher-skilled sectors agriculture, particularly in livestock farming such as mining, professional services, education, and animal-based production. Nearly four in and healthcare, reflecting broader economic ten poor individuals work in agriculture, more transformation and greater access to better- than twice the share of non-poor workers paying job opportunities. engaged in the sector (Figure 3.10). This higher concentration in agriculture reflects spatial disparities, as the poor are more likely to live in Figure 3. 10 Employment sector among workers aged 15+ (2022) 4 5 6 5 1 4 5 5 4 4 4 5 100 4 2 Agriculture 11 10 13 17 17 15 15 18 2 17 18 6 6 Mining 80 8 9 27 1 7 9 9 9 9 10 9 11 2 10 8 14 21 11 1 16 8 10 13 16 Manufacturing & construction 60 14 21 11 19 20 11 12 87 13 16 13 Retail trade 14 8 4 4 40 17 17 5 16 16 11 17 17 Professional services 19 6 6 9 17 7 20 25 38 39 35 7 Public administration 22 11 24 9 19 18 16 6 1 7 6 0 Education, health National Ulaanbaatar Aimag center Countryside Soum center Non-poor Poor Q1 Q2 Q3 Q4 Q5 Other Location Poverty Consumption quintile status Source: Authors’ calculations based on the 2022 HSES Mongolia Poverty Update 2022: New Methods, New Insights 49 CHAPTER 3. Profile of the poor in 2022 Poorer workers are also more likely to engage occupations, while wealthier workers are more in low-skill and informal employment. While the likely to be in higher-skilled roles, such as majority of poor workers (59 percent) hold wage managerial and professional positions (Figure or salaried jobs, they are 14 percentage points 3.11b). In 2022, workers in the wealthiest quintile less likely than non-poor workers to be in waged were more than seven times as likely as those in employment (Figure 3.11a). Instead, they are more the poorest quintile to be employed as managers likely to be self-employed, primarily as herders, or or in professional occupations, highlighting the work in unpaid family businesses. Additionally, strong link between skills, job quality, and welfare. poorer workers are disproportionately employed in low-skilled jobs, particularly in elementary Figure 3. 11 Employment type and occupation among workers aged 15+ (2022) a) Employment type (% of workers aged 15+) 100 6 1 5 1 10 0 12 0 5 1 11 0 7 0 9 0 11 0 14 0 Other 2 5 80 20 16 15 Other self-employed 35 34 33 23 52 Herder 60 86 Wage worker 74 81 40 73 68 70 60 60 59 20 42 0 National Urban Rural Non-poor Poor Q1 Q2 Q3 Q4 Q5 Poverty Consumption quintile status b) Occupation (% of workers aged 15+) 4 100 9 8 11 8 Elementary occupations 10 12 22 14 5 3 20 17 15 16 80 21 24 Agriculture 25 34 20 21 20 Craft & machine operators 54 37 37 60 20 22 24 22 Services & sales 20 40 19 20 20 10 19 20 Managers & professionals 55 10 18 34 20 30 36 35 15 15 24 18 9 14 7 0 National Urban Rural Non-poor Poor Q1 Q2 Q3 Q4 Q5 Poverty Consumption quintile status Source: Authors’ calculations based on the 2022 HSES 50 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 3. Profile of the poor in 2022 Significant wage disparities exist between poor 2.5 times as much. While differences in skill, and non-poor workers, and these gaps are only occupation, and sector play a significant role partially explained by observable differences in these wage disparities, notable gaps persist in skills, education, and sector of employment. even within the same educational attainment, In 2022, the average annual wage¹³ for a poor occupation, or sector. This finding suggests the worker was 6.5 million MNT, compared to 11.8 presence of structural inequalities in the labor million MNT for a non-poor worker—nearly double. market that disproportionately disadvantage These disparities are even more pronounced the poor, limiting their opportunities for upward across the broader welfare distribution: workers mobility. in the bottom 20 percent earned an average of 6.1 million MNT annually, while those in the wealthiest 20 percent earned 15.6 million MNT— Figure 3. 12 Average annual wages of salaried workers in million MNT (2022) 20 15.6 15 11.5 11.8 10.8 10.9 10 9.1 8.3 7.8 6.5 6.1 5 0 National Urban Rural Non-poor Poor Q1 Q2 Q3 Q4 Q5 Poverty status Consumption quintile Note: Self-reported wages in the past 12 months are shown. Source: Authors’ calculations based on the 2022 HSES 3.5. Asset ownership & financial households cope with economic shocks, manage inclusion risks, and reduce vulnerability to seasonal fluctuations in income, particularly in sectors like Asset ownership plays a vital role in improving agriculture. Asset ownership is thus an important household welfare by providing a foundation for driver of long-term welfare. financial stability and resilience. Owning assets such as land, livestock, equipment, or savings Poorer households are less likely to have enables households to generate income, invest access to essential productive assets, in productive activities, and build wealth over highlighting disparities in living conditions. In time. Assets also act as a safety net, helping 2022, ownership of basic household items such as refrigerators and televisions was widespread 13 The average annual wage calculated from the 2022 HSES is the total amount of all wages earned during the 12 months preceding the survey, including the worker’s wages, bonuses, and allowances (whether in cash or in the form of non-cash benefits). For some individuals, if they have been employed for a certain period of time during the past 12 months, their earnings for that period are considered annual wages. Mongolia Poverty Update 2022: New Methods, New Insights 51 CHAPTER 3. Profile of the poor in 2022 across the welfare distribution, showing relatively were nearly four times as likely as those in the small gaps (Figure 3.13). However, key assets that poorest quintile to own at least one car. Poorer improve mobility, convenience, and efficiency, households, instead, were more likely to own such as cars, washing machines, and other motorcycles, which have limited functionality electrical appliances, exhibited greater variation given Mongolia’s vast geography and harsh between poor and non-poor households. For climate. example, households in the wealthiest quintile Figure 3. 13 Ownership of select durable assets (% of households), by consumption quintile (2022) 98 98 97 100 95 94 94 94 91 90 87 86 85 80 78 80 76 72 70 64 64 64 62 58 60 55 48 47 43 43 40 36 33 28 25 22 20 18 18 20 17 15 12 6 5 0 Refrigerator Rice cooker Vacuum Washing Electric Color TV Motorcycle Car cleaner machine /gas stove Q1 Q2 Q3 Q4 Q5 Source: Authors’ calculations based on the 2022 HSES Poor and remote households face significant often more expensive relative to incomes. Since limitations in digital connectivity, which can poor households are disproportionately located hinder access to information and economic and in rural and remote areas, they are less likely to educational opportunities. While mobile phone have access to these digital tools. This gap in ownership is generally high across the welfare access reinforces existing inequalities, restricting distribution, disparities persist, with households opportunities for education, employment, and in the poorest quintile 14 percentage points access to essential services, ultimately deepening less likely to own a mobile phone than those in the urban-rural divide in digital inclusion. the wealthiest quintile (Figure 3.14). Moreover, access to computers and the internet remains significantly lower among poor households. In 2022, only 2 percent of the poorest households owned a computer, and just one in four had internet access, compared to nearly eight in ten among the wealthiest households. Much of these disparities in access can be attributed to limited digital infrastructure in rural areas, where connectivity is weaker and devices are 52 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 3. Profile of the poor in 2022 Figure 3. 14 Ownership of digital technologies (% of households), by consumption quintile (2022) a) Ownership of digital technologies by b) Ownership of digital technologies by location consumption quintile 98 95 96 100 100 93 91 87 87 84 80 77 80 80 65 54 60 60 42 37 36 40 40 27 25 24 18 16 20 14 20 10 11 9 5 3 2 0 0 Smartphone Internet Computer Smartphone Internet Computer Q1 Q2 Q3 Q4 Q5 Ulaanbaatar Aimag center Source: Authors’ calculations based on the 2022 HSES Soum center Countryside While loans are generally accessible to both or herder loans,¹4 while wealthier households poor and non-poor households, significant were more likely to take out housing, business, differences exist in the purpose of borrowing or automobile loans (Figure 3.15). Mortgage and its contribution to household welfare. In loans, in particular, were far more accessible to 2022, approximately 55 percent of households wealthier households, who can provide collateral had at least one member with an active loan. Non- and demonstrate an established credit history. poor households were slightly more likely to have Among the wealthiest households, nearly one taken out a loan, but the difference was small (2.5 in five loans were mortgages, whereas among percentage points). Most loans were obtained the poorest, fewer than one percent of loans fell through formal financial institutions, with into this category. This disparity underscores the minimal variation in loan sources between poor financial constraints faced by poorer households, and non-poor households. However, the biggest whose borrowing may primarily serve short-term difference lies in the type of loans taken. Poorer needs rather than long-term asset and wealth households were more likely to rely on pension accummulation. Figure 3. 15 Type of loan among households with loans (2022) 100 21 16 15 15 15 80 3 6 8 10 15 23 17 13 6 60 23 9 18 14 40 21 20 37 37 20 37 32 33 1 3 5 11 18 0 Q1 Q2 Q3 Q4 Q5 Consumption quintile Housing Salary Pension Herder Business/Auto Other Source: Authors’ calculations based on the 2022 HSES 14 A pension loan is a consumer loan provided by commercial banks against the future pension of a retiree. Herder loans in Mongolia are loans given to herders to help them support their livelihoods. A salary loan is a cash advance loan that can be repaid through deductions from employees’ salaries. Mongolia Poverty Update 2022: New Methods, New Insights 53 CHAPTER 3. Profile of the poor in 2022 1.6. Access to housing and basic in urban settings. In urban areas, six in ten services households in the poorest quintile live in gers, compared to just one percent of the wealthiest Housing and access to basic services such as quintile. Wealthier households, on the other clean water, sanitation, electricity, and heating hand, overwhelmingly reside in apartments (84 are fundamental to well-being, as they directly percent), which offer better access to essential impact health, safety, and overall living standards. services, including district heating. Infrastructure Inadequate housing and limited access to constraints force urban ger households to rely essential services not only expose households on alternative heating sources, such as coal to health risks and higher living costs but also cookstoves or electricity, which can be less reinforce poverty by limiting opportunities for efficient and more harmful to health. Detached education, employment, and economic mobility. houses may provide a slightly better option, but most of these dwellings do not have access to Poor households in both rural and urban areas district heating and construction quality often predominantly live in gers, often with limited varies, limiting their durability and efficiency. In access to reliable energy sources. Housing type rural areas, apartments are scarce, and wealthier is a key determinant of poverty in Mongolia, with households are more likely to live in detached poor households 42 percentage points more houses rather than gers. likely than non-poor households to reside in gers (Figure 3.16). This disparity exists in both urban and rural areas, though it is more pronounced Figure 3. 16 Type of housing (% of population) by five consumption groups, 2022 1 1 1 1 2 3 1 1 1 1 1 2 2 1 100 14 21 35 36 31 34 40 29 30 35 80 34 37 52 47 2 54 3 4 3 60 4 30 5 41 84 40 43 19 65 78 12 64 45 67 57 60 61 47 20 28 33 33 22 22 14 5 1 0 Q1 Q2 Q3 Q4 Q5 Q1 Q2 Q3 Q4 Q5 National Urban Rural Non-poor Poor Poverty Urban consumption quintiles Rural consumption quintiles status Ger Apartment Detached house Other Source: Authors’ calculations based on the 2022 HSES 54 Mongolia Poverty Update 2022: New Methods, New Insights CHAPTER 3. Profile of the poor in 2022 In 2022, nine out of ten poor individuals lacked limitations restrict access to essential services. access to at least one essential service— Even among the wealthiest households, 22 improved drinking water, sanitation, or percent still use unimproved sanitation facilities, sustainable heating. While electricity access is and 16 percent rely on traditional heating nearly universal in Mongolia, almost all poor have methods, primarily coal. This highlights that access to improved sanitation facilities, and just even economically secure households often face one in ten has access to sustainable heating gaps in access to quality housing and essential sources. These disparities are largely shaped by services, underscoring the broader challenges of housing type (gers) and location (remote rural infrastructure development in Mongolia (Figure areas or urban ger districts), where infrastructure 3.17). Figure 3. 17 Access to basic services (% of population), 2022 a) Improved drinking water b) Improved sanitation c) Sustainable heating National 90 33 41 Poor 84 5 8 Non-poor 92 44 53 Ulaanbaatar 100 52 61 Aimag center 96 35 43 Soum center 92 10 19 Countryside 49 1 2 Apartment/House 96 50 61 Ger 77 1 1 Q1 85 3 6 Q2 83 11 18 Q3 89 25 35 Q4 93 49 60 Q5 98 78 84 Source: Authors’ calculations based on the 2022 HSES Note: House/Apartment refers to households living in a detached house, apartment, or other types of permanent structures, whiles ger refers to households living in traditional ger. Mongolia Poverty Update 2022: New Methods, New Insights 55 References REFERENCES Amendola, N., G. Mancini, S. Redaelli, G. Jolliffe, D., E. Beer Prydz. 2016. “Estimating Vecchi. 2023 “Price Adjustments and Poverty International Poverty Lines from Comparable Measurement.” World Bank Policy Research National Thresholds.” Journal of Economic Working Paper 10426. Inequality 14 (2): 185–198. Balcazar, C.F., L. Ceriaini, S. Olivieri, and M. Jolliffe, D., E. Beer Prydz. 2021. “Societal Poverty: Ranzani. 2014. “Rent Imputation for Welfare A Relative and Relevant Measure.” The World Measurement: A Review of Methodologies and Bank Economic Review 35, no. 1: 180–206. Empirical Findings.” World Bank Policy Research Working Paper 7103. Jolliffe, D., E. Beer Prydz, U. Serajuddin. 2022. “Disparities in Assessments of Living Standards Belotti, F., G. Mancini, and G. Vecchi. 2022. Using National Accounts and Household “Outlier Detection for Welfare Analysis.” World Surveys.” Review of Income and Wealth 68 (S2): Bank Policy Research Working Paper 10231. S385–S420. Ceriani, L., S. Olivieri, and M. Ranzani. Jolliffe, D., S. Tetteh-Baah. 2022. “Identifying the 2022.“Housing, imputed rent, and household Poor– Accounting for Household Economies of welfare.” The Journal of Economic Inequality. Scale in Global Poverty Estimates.” World Bank Policy Research Working Paper 10209. Deaton, A., and S. Zaidi. 2002. “Guidelines for Constructing Consumption Aggregates for Mancini, G. and G. Vecchi. 2022. “On the Welfare Analysis”. World Bank Living Standards Construction of a Consumption Aggregate Measurement Study (LSMS) Working Paper 135. for Inequality and Poverty Analysis (English).” Washington, D.C. : World Bank Group. Hentschel J., and P. Lanjouw. 2000. “Household welfare measurement and the pricing of basic Ravallion, Martin. 1998. “Poverty Lines in Theory services.” Journal of International Development. and Practice.” World Bank Living Standards Volume 12: 13-27. Measurement Study (LSMS) Working Paper 133. Heston, A., and A. O. Nakamura. 2009. “Questions Ravallion, Martin. 2001. “Poverty lines: Economic About the Equivalence of Market Rents and User foundations of current practices.” World Bank, Costs for Owner Occupied Housing.” Journal of Washington D.C. Housing Economics 18: 273–279. Ravallion, Martin. 2015. “On testing the scale Jolliffe, D. 2001.“Measuring Absolute and Relative sensitivity of poverty measures.” Economic Poverty: The Sensitivity of Estimated Household Letters, 137 (2015) 88–90 Consumption to Survey Design.” Journal of Economic and Social Measurement Volume 27, Ravallion, M. 2020. “On Measuring Global Poverty.” no. Numbers 1-2: 1–23. Annual Review of Economics 12: 167–188. Jolliffe, D., D. Gerszon Mahler, C. Lakner, A. Rousseeuw, P. J. and C. Croux. 1993. “Alternatives Atamanov, and S. Tetteh-Baah. 2022. “Assessing to the Median Absolute Deviation.” Journal of the the Impact of the 2017 PPPs on the International American Statistical Association 88, no. 424: Poverty Line and Global Poverty.” World Bank 1273–1283. Policy Research Working Paper 9941. 56 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX ANNEX A 1. DETECTION AND TREATMENT OF OUTLIERS To identify outliers across components of the for detecting outliers, applying normalization and consumption aggregate, a general approach statistical thresholds (alpha values of 2.5–3.5), is applied, following the recommendations and flagging outliers where there are at least 20 of Belotti et al. (2022). The challenge lies in defining observations in a given group. If this distinguishing genuine extreme values from condition is not met, detection is repeated at a those caused by measurement errors. Using more aggregated level. Once identified, outliers “robust” estimators, such as the median for are addressed through imputation methods, location and the inter-quartile range for scale, including replacing values with the group median, outliers are detected using the outdetect winsorizing extreme values to the nearest non- command in Stata with parameters tailored to outlier boundary, or applying regression-based each variable. This involves determining the imputation, depending on the variable and the appropriate level (spatial or temporal groupings) suspected cause of extreme values. 2. POVERTY LINE Annex. Table. 1 Daily per adult equivalent food basket Quantity x Calories Quantity x Price (MNT) Flour, grade 1 490.8 231.0 Mutton 230.8 1164.4 Rice 202.0 210.5 Bakery 198.2 230.6 Bread 170.0 202.5 Beef 95.2 595.4 Vegetable oil 92.3 84.8 Milk 90.6 459.7 Noodles (domestic) 62.3 57.8 Potato 53.7 103.6 Sugar 38.0 31.7 Goat meat 34.6 182.8 Butter 27.0 30.3 Yogurt 18.4 99.0 Dried curds 17.8 69.3 Mongolia Poverty Update 2022: New Methods, New Insights 57 ANNEX Quantity x Calories Quantity x Price (MNT) Horse meat 17.4 108.0 Beverage 16.7 88.1 Soft candy 13.1 36.6 Eggs 12.7 75.1 Cream 12.2 35.9 Frozen dumpling 11.9 44.6 Melted butter 10.7 29.5 Dried meat 9.4 91.0 Onion 7.9 55.6 Animal interior 7.5 39.1 Sausage 7.3 22.6 Carrot 6.7 47.9 Chicken 4.8 28.3 Jam 4.2 17.0 Green tea 3.4 43.6 Cabbage 3.4 30.0 Canned meat 2.6 13.6 Apple 2.5 41.5 Ice-cream 1.9 16.1 Total 1,978.1 4,617.7 Calorie threshold 2,400.0 Food poverty line 5,602.6 58 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX ANNEX B. ADDITIONAL STATISTICAL TABLES Table B. 1 Poverty indicators based on different scales of the poverty line, 2022 Poverty Poverty line (%) Headcount Gap Severity 150% 57.9 18.9 8.2 140% 53.0 16.2 6.8 130% 47.1 13.6 5.5 120% 41.0 11.1 4.3 110% 34.1 8.7 3.2 100% 27.1 6.5 2.3 90% 20.6 4.6 1.5 80% 14.4 3.0 0.9 70% 9.1 1.7 0.5 60% 4.8 0.9 0.2 50% 2.1 0.4 0.1 Source: HSES 2022. Table B. 2 Poverty indicators, by region, 2022 National Western Khangai Central Eastern Ulaanbaatar Poverty headcount 27.1 36.5 33.4 24.6 35.3 21.6 (0.6) (1.2) (1.1) (1.0) (1.5) (1.2) Poverty gap 6.5 7.9 7.8 5.2 8.8 5.6 (0.2) (0.3) (0.3) (0.3) (0.5) (0.4) Poverty severity 2.3 2.6 2.6 1.7 3.2 2.1 (0.1) (0.1) (0.1) (0.1) (0.3) (0.2) Additional statistics: Population share (%) 100.0 13.3 18.1 14.8 7.0 46.9 Population (‘000) 3,368.6 417.7 607.9 516.6 230.1 1,596.3 Share of poor (% of total poor) 100.0 17.8 22.3 13.4 9.1 37.4 Number of poor (‘000) 913.7 162.9 203.7 122.6 82.8 341.7 Average household size 3.4 3.9 3.3 3.1 3.2 3.5 Average age of household head 48.6 48.7 48.7 48.3 48.1 48.8 Male-headed (% of households) 74.0 81.0 77.2 74.3 73.4 70.9 Urban (% of population) 61.4 64.8 56.9 56.8 61.4 64.0 Children (% of population) 24.8 26.3 23.9 22.7 24.6 25.4 Note: Population data is based on administrative data and refers to the estimated population at the end 2022 in Mongolia. Standard errors taking into account the survey design are shown in parentheses. Source: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 59 ANNEX Table B. 3 Poverty indicators, by location, 2022 Urban Rural National Ulaan- Aimag Soum Total Total Countryside baatar center center Poverty headcount 27.1 23.0 21.6 26.1 35.5 30.6 41.2 (0.6) (0.9) (1.2) (1.0) (0.8) (0.9) (1.1) Poverty gap 6.5 5.8 5.6 6.1 7.9 7.0 9.0 (0.2) (0.3) (0.4) (0.3) (0.2) (0.3) (0.3) Poverty severity 2.3 2.1 2.1 2.1 2.6 2.4 2.9 (0.1) (0.1) (0.2) (0.1) (0.1) (0.1) (0.1) Additional statistics: Population share (%) 100.0 67.0 46.9 20.1 33.0 17.6 15.4 Population (‘000) 3 368.6 2 256.7 1 596.3 660.4 1 111.9 592.7 519.2 Share of poor (% of total poor) 100.0 56.8 37.4 19.4 43.2 19.8 23.4 Number of poor (‘000) 913.7 518.6 341.7 176.9 395.1 181.4 213.7 Average household size 3.4 3.5 3.5 3.4 3.4 3.2 3.5 Average age of household head 48.6 48.8 48.8 48.7 48.4 49.7 46.8 Male-headed (% of households) 74.0 71.2 70.9 71.9 79.4 74.3 85.8 Children (% of population) 24.8 25.4 25.4 25.3 23.5 23.1 24.0 Note: Population data is based on administrative data and refers to the estimated population at the end 2022 in Mongolia. Standard errors taking into account the survey design are shown in parentheses. Source: HSES 2022. Table B. 4 Poverty indicators, by quarter, 2022 I quarter II quarter III quarter IV quarter National (Jan-Mar, (Apr-Jun, (Jul-Sep, (Oct-Dec, 2022) 2022) 2022) 2022) Poverty headcount 27.1 25.9 27.7 27.0 28.0 (0.6) (1.2) (1.4) (1.3) (1.3) Poverty gap 6.5 6.1 6.6 6.5 6.7 (0.2) (0.4) (0.4) (0.4) (0.5) Poverty severity 2.3 2.1 2.3 2.3 2.5 (0.1) (0.2) (0.2) (0.2) (0.2) Additional statistics: Population share (%) 100.0 25.7 25.3 24.9 24.1 Share of poor (% of total poor) 100.0 24.5 25.9 24.8 24.8 Average household size 3.4 3.5 3.5 3.5 3.4 Average age of household head 48.6 48.3 48.3 48.6 49.3 Male-headed (% of households) 74.0 75.2 73.7 73.5 73.6 Children (% of population) 24.8 24.9 25.3 24.8 24.0 Note: Standard errors taking into account the survey design are shown in parentheses. Source: HSES 2022. 60 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX Table B. 5 Poverty indicators, by household size, 2022 Household size National 1 2 3 4 5 6 7 8-above Poverty headcount 27.1 14.1 14.0 19.2 22.5 28.4 39.9 49.2 54.6 (0.6) (0.8) (0.7) (0.9) (0.9) (1.0) (1.5) (2.5) (3.3) Poverty gap 6.5 2.9 2.9 4.1 5.0 6.7 10.1 13.1 16.0 (0.2) (0.2) (0.2) (0.3) (0.3) (0.3) (0.5) (1.0) (1.2) Poverty severity 2.3 1.0 0.9 1.4 1.7 2.3 3.7 5.0 6.3 (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.3) (0.5) (0.7) Additional statistics: Population share (%) 100.0 4.3 11.8 14.7 23.4 21.9 14.9 5.2 3.7 Share of poor (% of total poor) 100.0 2.3 6.1 10.4 19.4 22.9 22.0 9.5 7.5 Average age of household head 48.6 57.5 57.2 47.2 42.3 42.0 43.1 46.2 48.3 Male-headed (% of households) 74.0 41.0 69.2 73.3 84.4 88.2 88.5 87.1 86.3 Children (% of population) 24.8 0.0 5.4 21.8 36.1 44.2 48.1 45.0 47.8 Note: Standard errors taking into account the survey design are shown in parentheses. Source: HSES 2022. Table B. 6 Poverty indicators, by age of household head, 2022 National 15 - 29 30 - 39 40 - 49 50 - 59 >=60 Poverty headcount 27.1 27.1 26.4 29.8 26.9 24.0 (0.6) (1.5) (0.9) (1.0) (1.1) (1.0) Poverty gap 6.5 6.6 5.9 7.4 6.7 5.6 (0.2) (0.4) (0.3) (0.3) (0.4) (0.3) Poverty severity 2.3 2.3 1.9 2.7 2.5 1.9 (0.1) (0.2) (0.1) (0.2) (0.2) (0.2) Additional statistics: Population share (%) 100.0 7.2 29.2 28.8 18.5 16.3 Share of poor (% of total poor) 100.0 7.2 28.5 31.6 18.3 14.4 Average household size 3.4 3.2 4.3 4.2 3.1 2.3 Average age of household head 48.6 26.1 34.7 44.4 54.5 68.7 Male-headed (% of households) 74.0 83.0 85.2 80.1 72.2 55.7 Children (% of population) 24.8 33.5 46.3 30.5 11.8 6.4 Note: Standard errors taking into account the survey design are shown in parentheses. Source: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 61 ANNEX Table B. 7 Poverty indicators, by gender of the household head, 2022 National Urban Rural Female Male Female Male Female Male Poverty headcount 31.3 26.1 28.8 21.3 39.6 34.9 (1.1) (0.7) (1.4) (0.9) (1.5) (0.8) Poverty gap 8.3 6.0 7.9 5.2 9.8 7.6 (0.4) (0.2) (0.5) (0.3) (0.5) (0.2) Poverty severity 3.1 2.1 3.0 1.9 3.5 2.5 (0.2) (0.1) (0.3) (0.1) (0.3) (0.1) Additional statistics: Population share (%) 19.2 80.8 22.0 78.0 13.6 86.4 Share of poor (% of total poor) 22.2 77.8 27.7 72.3 15.1 84.9 Average household size 2.6 3.8 2.7 3.8 2.2 3.7 Average age of household head 55.1 46.4 54.4 46.5 57.1 46.1 Children (% of population) 18.8 26.8 20.2 27.5 15.2 25.6 Married, living together* (%) 18.6 93.9 19.7 94.2 15.2 93.4 Separated, divorced, widowed* (%) 71.4 4.0 71.0 4.1 73.1 3.8 Note: Standard errors taking into account the survey design are shown in parentheses. * Estimates for the household head Source: HSES 2022. Table B. 8 Poverty indicators, by the level of education attainment of household head, 2022 Lower Higher University or National None Primary Vocational secondary secondary higher Poverty headcount 27.1 56.1 48.4 40.9 32.6 21.7 6.3 (0.6) (1.6) (1.5) (1.0) (1.2) (1.1) (0.5) Poverty gap 6.5 13.6 11.4 10.0 8.2 4.9 1.1 (0.2) (0.5) (0.5) (0.4) (0.5) (0.3) (0.1) Poverty severity 2.3 4.6 3.9 3.5 3.1 1.6 0.3 (0.1) (0.2) (0.3) (0.2) (0.2) (0.1) (0.0) Additional statistics: Population share (%) 100.0 5.4 6.1 16.2 27.6 17.5 27.2 Share of poor (% of total poor) 100.0 11.2 10.9 24.4 33.3 14.0 6.3 Average household size 3.4 3.6 3.2 3.4 3.6 3.3 3.5 Average age of household head 48.6 49.7 55.5 51.1 47.0 52.1 44.5 Male-headed (% of households) 74.0 76.4 68.7 79.8 75.4 70.6 72.2 Children (% of population) 24.8 25.5 19.9 20.6 26.3 20.7 29.6 Note: Standard errors taking into account the survey design are shown in parentheses. Source: HSES 2022. 62 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX Table B. 9 Poverty indicators, by the sector of employment of household head, 2022 Employed Out of the National Unemployed Total Agriculture Industry Services labor force Poverty headcount 27.1 24.2 40.1 22.6 17.6 51.6 32.3 (0.6) (0.7) (1.1) (1.2) (0.8) 4.0 1.0 Poverty gap 6.5 5.5 8.8 5.4 3.9 13.8 8.4 (0.2) (0.2) (0.3) (0.3) (0.2) 1.5 0.4 Poverty severity 2.3 1.8 2.9 1.8 1.3 5.6 3.1 (0.1) (0.1) (0.1) (0.2) (0.1) 0.8 0.2 Additional statistics: Population share (%) 100.0 67.1 15.3 20.1 31.8 1.4 31.5 Share of poor (% of total poor) 100.0 59.9 22.5 16.8 20.6 2.7 37.5 Average household size 3.4 3.8 3.8 4.0 3.7 3.9 2.8 Average age of household 48.6 42.1 44.2 40.5 42.1 41.5 59.1 head Male-headed (% of 74.0 83.1 92.0 90.3 74.7 82.6 59.4 households) Children (% of population) 24.8 31.2 27.5 34.2 31.3 32.6 14.3 Note: Standard errors taking into account the survey design are shown in parentheses. Source: HSES 2022. Table B. 10 Poverty indicators, by the employment status of household head, 2022 Employed National Unemployed Pensioner Herder Private Public State Poverty headcount 27.1 40.9 20.9 18.3 15.9 51.6 32.3 (0.6) (1.1) (0.9) (1.2) (1.7) (4.0) (1.0) Poverty gap 6.5 8.9 4.7 4.4 4.0 13.8 8.4 (0.2) (0.3) (0.3) (0.4) (0.6) (1.5) (0.4) Poverty severity 2.3 2.9 1.5 1.6 1.5 5.6 3.1 (0.1) (0.2) (0.1) (0.2) (0.3) (0.8) (0.2) Additional statistics: Population share (%) 100.0 14.0 35.6 11.9 5.6 1.4 31.5 Share of poor (% of total poor) 100.0 21.1 27.4 8.0 3.3 2.7 37.5 Average household size 3.4 3.8 3.9 3.7 3.9 3.9 2.8 Average age of household 48.6 44.3 41.5 41.8 41.2 41.5 59.1 head Male-headed (% of 74.0 91.9 82.1 74.4 85.9 82.6 59.4 households) Children (% of population) 24.8 27.0 32.5 31.5 33.2 32.6 14.3 Note: A pensioner refers to a household head who receive any pension or benefit from the state Standard errors taking into account the survey design are shown in parentheses. Source: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 63 Table B. 11 Livestock holdings, 2022 ANNEX Cattle Horses Camels Sheeps Goats Bods Average Average Average Average Average Average Holders Holders Holders Holders Holders Holders number number number number number number (%) (%) (%) (%) (%) (%) 64 (in bod) (in bod) (in bod) (in bod) (in bod) (in bod) National 23.0 6.4 18.9 6.5 2.3 6.0 22.6 42.4 23.0 34.3 27.9 19.7 Urban 5.6 4.9 3.4 6.6 0.2 4.7 4.7 29.3 4.5 23.0 7.3 12.0 Rural 58.4 6.7 50.2 6.5 6.5 6.1 59.1 44.5 60.4 36.1 69.7 21.4 Ulaanbaatar 2.7 5.0 1.4 6.1 0.0 0.5 1.8 26.2 1.6 17.5 3.3 10.2 Aimag center 12.6 4.9 8.0 6.8 0.5 5.2 11.3 30.4 11.4 24.8 16.7 12.7 Soum center 40.0 4.7 28.5 4.7 2.7 5.3 37.6 22.6 38.9 20.7 50.7 11.5 Countryside 79.3 7.9 75.0 7.3 10.8 6.3 83.7 55.7 84.8 44.1 91.5 27.6 Western 54.3 3.9 46.0 3.7 7.8 3.2 52.9 29.2 56.5 29.5 64.7 13.7 Khangai 41.4 7.4 34.1 6.1 2.2 7.1 43.9 40.2 43.5 29.8 50.9 19.5 Central 26.5 6.2 21.0 8.6 4.0 10.8 26.1 56.2 26.5 51.6 34.5 24.0 Eastern 45.8 10.7 40.4 11.5 3.2 4.1 42.5 66.1 42.1 40.0 49.9 33.1 Non-poor 21.2 7.6 17.2 8.0 2.1 7.1 20.2 51.0 20.1 40.2 25.1 23.6 Poor 28.0 4.1 23.4 3.6 2.7 3.6 29.2 26.4 30.8 24.0 35.4 12.3 Note: The bod scale was used to estimate the size of the herd. These factors tarnsform catlle, camels, sheep and goats into equivalent horses. One horse is assumed to have the same value as one cattle, 0.67 camels, 6 sheeps or eight goats. Cattle includes cows and yaks. Average number of livestock (in bod) was based on households having this type of livestock Source: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights ANNEX Table B. 12 Poverty indicators, by livestock ownership, 2022 National Urban Rural With Without With Without With Without livestock livestock livestock livestock livestock livestock Poverty headcount 34.4 24.3 26.1 22.7 36.1 34.2 (0.8) (0.8) (1.8) (0.9) (0.9) (1.2) Poverty gap 7.3 6.2 5.5 5.8 7.6 8.6 (0.2) (0.3) (0.5) (0.3) (0.3) (0.4) Poverty severity 2.3 2.3 1.8 2.2 2.4 3.1 (0.1) (0.1) (0.2) (0.1) (0.1) (0.2) Additional statistics: Population share (%) 27.9 72.1 7.3 92.7 69.7 30.3 Share of poor (% of total poor) 35.4 64.6 8.3 91.7 70.9 29.1 Average household size 3.7 3.4 3.9 3.5 3.6 2.9 Average age of household head 47.1 49.2 47.6 48.9 47.0 50.8 Male-headed (% of households) 86.1 69.7 82.8 70.4 86.8 66.1 Children (% of population) 25.3 24.6 27.1 25.3 24.9 20.9 Note: Standard errors taking into account the survey design are shown in parentheses. Source: HSES 2022. Table B. 13 Poverty indicators, by ownership of land, 2022 National Urban Rural Without Without Without With land With land With land land land land Poverty headcount 26.8 27.5 24.3 21.5 31.0 43.3 (0.7) (0.9) (1.0) (1.1) (0.9) (1.2) Poverty gap 6.1 7.0 5.9 5.7 6.5 10.3 (0.2) (0.3) (0.3) (0.4) (0.3) (0.4) Poverty severity 2.1 2.5 2.1 2.2 2.1 3.5 (0.1) (0.1) (0.2) (0.2) (0.1) (0.2) Additional statistics: Population share (%) 56.3 43.7 52.8 47.2 63.4 36.6 Share of poor (% of total poor) 55.6 44.4 55.8 44.2 55.4 44.6 Average household size 3.6 3.2 3.7 3.3 3.6 3.1 Average age of household head 49.7 47.4 50.2 47.4 48.9 47.6 Male-headed (% of households) 78.6 68.7 76.1 66.3 82.6 74.6 Children (% of population) 24.4 25.1 24.8 26.0 23.9 22.9 Note: Standard errors taking into account the survey design are shown in parentheses. Source: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 65 ANNEX Table B. 14 Poverty indicators, by possession of savings, 2022 National Urban Rural Without With Without With Without With savings savings savings savings savings savings Poverty headcount 20.0 31.6 15.5 28.1 30.7 38.1 (0.9) (0.7) (1.1) (1.0) (1.2) (0.9) Poverty gap 4.5 7.7 3.7 7.2 6.6 8.6 (0.3) (0.3) (0.3) (0.4) (0.3) (0.3) Poverty severity 1.5 2.8 1.3 2.7 2.1 2.9 (0.1) (0.1) (0.2) (0.2) (0.1) (0.1) Additional statistics: Population share (%) 38.6 61.4 40.5 59.5 34.7 65.3 Share of poor (% of total poor) 28.5 71.5 27.3 72.7 30.0 70.0 Average household size 3.9 3.2 3.9 3.3 4.0 3.1 Average age of household head 45.4 50.3 45.8 50.5 44.6 49.9 Male-headed (% of households) 79.7 71.1 77.2 67.8 85.6 76.8 Children (% of population) 32.1 21.0 31.7 21.8 32.9 19.6 Note: Standard errors taking into account the survey design are shown in parentheses. Source: HSES 2022. Table B. 15 Poverty indicators, by type of loans, 2022 Type of loans consumption No National Automobile Household loan Mortgage Business Any loan Pension Herders Salary Poverty headcount 27.1 25.4 21.0 34.5 3.7 27.1 37.0 9.3 12.3 29.8 (0.6) (0.7) (0.9) (1.6) (0.7) (2.1) (1.2) (1.4) (1.8) (0.9) Poverty gap 6.5 5.8 4.7 8.8 0.5 6.5 7.7 1.8 1.6 7.5 (0.2) (0.2) (0.3) (0.6) (0.1) (0.7) (0.3) (0.5) (0.4) (0.3) Poverty severity 2.3 2.0 1.6 3.3 0.1 2.2 2.4 0.6 0.4 2.7 (0.1) (0.1) (0.1) (0.3) (0.0) (0.3) (0.1) (0.3) (0.2) (0.1) Additional statistics: Population share (%) 100.0 60.7 46.9 13.6 12.4 11.1 18.5 6.3 7.9 39.3 Share of poor (% of total poor) 100.0 56.9 38.7 18.4 1.8 11.8 27.0 2.3 3.8 43.1 Average household size 3.4 3.8 4.1 2.8 4.1 4.3 4.1 4.3 4.3 3.0 Average age of household head 48.6 46.0 42.6 61.2 40.9 43.8 44.5 46.1 41.9 51.8 Male-headed (% of households) 74.0 79.1 82.9 60.7 84.9 79.9 90.4 84.2 83.6 67.9 Children (% of population) 24.8 29.0 33.2 10.5 36.2 33.1 29.8 31.5 35.1 19.6 Note: Standard errors taking into account the survey design are shown in parentheses. Source: HSES 2022. 66 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX Table B. 16 Poverty indicators, by type of dwelling, 2022 National Urban Rural Apartment Apartment Apartment House House House Other Other Other Ger Ger Ger Poverty headcount 51.9 2.6 24.2 42.5 59.7 2.5 24.6 51.0 45.8 5.7 23.4 27.4 (0.8) (0.4) (0.9) (5.3) (1.4) (0.4) (1.2) (7.1) (1.0) (1.4) (1.1) (4.0) Poverty gap 13.7 0.4 4.7 10.4 17.6 0.3 4.9 12.6 10.8 0.6 4.4 6.3 (0.4) (0.1) (0.2) (1.6) (0.7) (0.1) (0.3) (2.1) (0.3) (0.2) (0.3) (1.4) Poverty severity 5.1 0.1 1.4 3.6 7.0 0.1 1.5 4.5 3.7 0.1 1.3 2.2 (0.2) (0.0) (0.1) (0.7) (0.4) (0.0) (0.1) (0.9) (0.1) (0.1) (0.1) (0.6) Additional statistics: Population share (%) 33.4 30.4 35.0 1.2 21.7 43.3 33.8 1.2 57.1 4.2 37.3 1.4 Share of poor (% of total poor) 63.9 3.0 31.2 1.9 56.4 4.7 36.2 2.6 73.7 0.7 24.6 1.0 Average household size 3.4 3.4 3.6 3.0 3.4 3.4 3.6 3.0 3.3 3.2 3.5 3.1 Average age of household head 48.0 47.3 50.4 49.1 48.6 47.4 50.7 50.7 47.6 45.8 50.0 46.2 Male-headed (% of households) 74.7 71.3 76.1 64.1 67.7 71.1 74.3 58.0 79.9 75.5 79.3 75.3 Children (% of population) 24.4 26.4 23.7 22.1 25.8 26.4 24.0 22.0 23.4 26.5 23.4 22.2 Note: Other includes student residences, company dormitoris and any other building designed not to be inhabited by households. Standard errors taking into account the survey design are shown in parentheses. Source: HSES 2022. Table B. 17 Poverty indicators, by access to basic services, 2022 a/ Improved water b/ Improved Electricity All three sources sanitation Yes No Yes No Yes No Yes No Poverty headcount 25.5 41.0 3.7 38.9 27.1 72.7 3.6 38.9 (0.7) (1.4) (0.4) (0.7) (0.6) (8.2) (0.4) (0.7) Poverty gap 6.2 9.0 0.6 9.5 6.5 20.6 0.6 9.5 (0.2) (0.4) (0.1) (0.3) (0.2) (4.8) (0.1) (0.3) Poverty severity 2.2 2.9 0.1 3.4 2.3 8.8 0.1 3.4 (0.1) (0.2) (0.0) (0.1) (0.1) (2.8) (0.0) (0.1) Additional statistics: Population share (%) 89.7 10.3 33.4 66.6 99.9 0.1 33.3 66.7 Share of poor (% of total poor) 84.4 15.6 4.5 95.5 99.8 0.2 4.5 95.5 Average household size 3.4 3.5 3.4 3.5 3.4 2.8 3.4 3.5 Average age of household head 48.7 47.9 47.5 49.2 48.6 50.7 47.5 49.2 Male-headed (% of households) 72.9 84.0 72.0 75.0 74.0 67.3 72.0 75.0 Children (% of population) 24.9 23.4 26.3 24.0 24.8 13.2 26.3 24.0 а/ Improved water sources: Households use a centralized water system connected to water supply pipelines, tube wells, boreholes, protected wells, protected springs, portable water service, or bottled water. b/ Improved sanitation: Households use toilets connected to sewer systems, bio toilets, septic tanks, or boreholes (suction). Standard errors taking into account the survey design are shown in parentheses. Source: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 67 ANNEX Table B. 18 Poverty indicators, by type of infrastructure services, urban and rural, 2022 a/ Improved water sources b/ Improved sanitation Urban Rural Urban Rural Yes No Yes No Yes No Yes No Poverty headcount 22.8 31.4 32.9 42.2 3.4 40.3 7.9 37.2 (0.9) (5.2) (0.8) (1.4) (0.4) (1.1) (1.4) (0.8) Poverty gap 5.7 8.5 7.5 9.1 0.5 10.4 0.9 8.3 (0.3) (2.0) (0.3) (0.4) (0.1) (0.4) (0.2) (0.2) Poverty severity 2.1 3.2 2.5 2.8 0.1 3.9 0.2 2.8 (0.1) (0.8) (0.1) (0.2) (0.0) (0.2) (0.1) (0.1) Additional statistics: Population share (%) 98.4 1.6 72.0 28.0 47.0 53.0 5.6 94.4 Share of poor (% of total poor) 97.8 2.2 66.7 33.3 7.0 93.0 1.3 98.7 Average household size 3.5 3.0 3.3 3.6 3.4 3.5 3.3 3.4 Average age of household head 48.7 52.6 48.8 47.2 47.6 49.9 46.1 48.5 Male-headed (% of households) 71.1 75.2 77.3 85.3 71.8 70.7 75.6 79.6 Children (% of population) 25.5 18.0 23.3 24.2 26.2 24.6 26.9 23.3 Electricity All three Urban Rural Urban Rural Yes No Yes No Yes No Yes No Poverty headcount 23.0 90.7 35.5 70.0 3.4 40.3 7.5 37.2 (0.9) (10.0) (0.8) (9.4) (0.4) (1.1) (1.3) (0.8) Poverty gap 5.8 31.2 7.9 19.0 0.5 10.4 0.9 8.3 (0.3) (13.6) (0.2) (5.0) (0.1) (0.4) (0.2) (0.2) Poverty severity 2.1 15.4 2.6 7.9 0.1 3.9 0.2 2.8 (0.1) (8.2) (0.1) (2.8) (0.0) (0.2) (0.1) (0.1) Additional statistics: Population share (%) 100.0 0.0 99.8 0.2 47.0 53.0 5.6 94.4 Share of poor (% of total poor) 99.9 0.1 99.6 0.4 7.0 93.0 1.2 98.8 Average household size 3.5 3.7 3.4 2.7 3.4 3.5 3.3 3.4 Average age of household head 48.8 42.0 48.4 51.7 47.6 49.9 46.0 48.5 Male-headed (% of households) 71.2 37.1 79.4 70.6 71.7 70.7 75.9 79.6 Children (% of population) 25.4 43.6 23.5 9.9 26.2 24.6 27.0 23.3 а/ Improved water sources: Households use a centralized water system connected to water supply pipelines, tube wells, boreholes, protected wells, protected springs, portable water service, or bottled water. b/ Improved sanitation: Households use toilets connected to sewer systems, bio toilets, septic tanks, or boreholes (suction). Standard errors taking into account the survey design are shown in parentheses. Source: HSES 2022. 68 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX Table B. 19 Transfers and remittances received by households, 2022 Received transfer Among recipeints Average transfer per Share of % of % of Share of total household consumption households population transfers (%) (Togrog per (%) month) Total 92.8 96.0 541 149 42.8 100.0 Social protection pension and 91.7 95.4 484 962 39.5 88.6 allowances Social insurance fund Pension 36.9 29.2 621 665 56.2 45.7 Disability pension 5.1 5.3 373 379 31.6 3.8 Survivor's benefit for children 1.1 1.2 350 208 27.1 0.8 Temporary incapacity benefits 0.5 0.5 202 784 13.9 0.2 Maternity benefits 2.0 2.8 208 083 10.9 0.8 Unemployment benefit 0.3 0.4 126 430 6.5 0.1 Other 2.5 2.0 115 826 8.7 0.6 Social welfare fund Disability pension 5.6 6.5 278 172 26.4 3.1 Social Welfare Pension 1.1 1.2 254 725 24.0 0.6 Maternity and Childcare benefit 14.4 21.1 40 244 2.7 1.1 Caregiver’s allowance 2.9 3.4 88 285 7.0 0.5 Food Support Program 2.9 4.3 52 636 5.1 0.3 Child Money Program 59.8 77.6 208 148 13.7 24.8 Pregnancy and Mother Hero 21.4 25.0 10 776 1.0 0.5 benefit Other 41.0 38.7 70 092 5.2 5.7 Gifts and remittance 13.9 11.7 412 573 25.1 11.4 From family and friends 13.2 10.9 397 052 24.9 10.4 From other sources 0.9 1.0 561 117 22.3 1.0 From abroad 1.7 1.5 650 417 30.6 2.2 From within the country 12.4 10.4 372 901 23.9 9.2 Source: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 69 ANNEX Table B. 20 Poverty indicators, by receipt of private and public transfers, 2022 Private Public Urban Rural Urban Rural Yes No Yes No Yes No Yes No Poverty headcount 15.9 24.1 27.8 36.1 23.6 10.1 36.5 16.6 (1.2) (1.0) (2.0) (0.8) (0.9) (1.4) (0.8) (1.5) Poverty gap 3.9 6.1 6.1 8.1 5.9 2.2 8.1 3.7 (0.4) (0.3) (0.6) (0.2) (0.3) (0.4) (0.2) (0.4) Poverty severity 1.4 2.2 2.0 2.7 2.2 0.8 2.7 1.1 (0.2) (0.2) (0.2) (0.1) (0.1) (0.2) (0.1) (0.2) Additional statistics: Population share (%) 13.8 86.2 7.3 92.7 95.7 4.3 94.9 5.1 Share of poor (% of total poor) 9.6 90.4 5.7 94.3 98.1 1.9 97.6 2.4 Average household size 2.9 3.6 2.8 3.4 3.6 2.0 3.5 1.8 Average age of household head 51.9 48.2 49.7 48.2 49.2 44.1 48.9 43.5 Male-headed (% of households) 54.1 74.6 67.8 80.5 71.1 72.1 78.6 87.4 Children (% of population) 20.8 26.3 19.0 23.9 27.4 1.5 25.7 2.0 Note: Standard errors taking into account the survey design are shown in parentheses. Source: HSES 2022. 70 Mongolia Poverty Update 2022: New Methods, New Insights Table B. 21 Per adult equivalent monthly average consumption by consumption category Location Region National Urban Rural Aimag Soum Ulaanbaatar Countryside Western Khangai Central Eastern center center Average consumption (2022 MNT) Food 194,280 198,195 186,335 201,092 191,437 184,826 188,057 181,378 186,811 196,054 188,594 Alcohol and tobacco 5,596 3,643 9,560 3,582 3,786 8,779 10,453 7,116 7,616 6,735 8,604 Clothing and footwear 55,676 51,278 64,602 47,718 59,581 64,736 64,450 65,664 62,431 61,068 61,238 Education 20,238 23,713 13,185 27,508 14,860 13,390 12,951 15,860 14,692 13,217 8,942 Health 25,633 28,117 20,591 30,038 23,635 23,693 17,051 17,826 23,878 24,042 18,764 Transport 50,892 49,639 53,435 50,746 47,055 48,285 59,312 47,149 49,267 55,868 52,632 Communication 21,024 23,921 15,143 25,722 19,722 17,515 12,436 14,580 15,728 20,116 17,339 Fuel, energy, and utilities 30,669 36,652 18,525 37,436 34,823 26,663 9,237 25,326 22,388 29,274 19,731 Personal care 29,331 32,034 23,847 32,614 30,679 26,387 20,947 23,191 26,464 28,528 28,067 Household equipment, 21,186 21,821 19,897 21,860 21,730 22,272 17,186 20,110 20,203 21,262 21,083 maintenance, and services Mongolia Poverty Update 2022: New Methods, New Insights Recreation 12,173 13,924 8,618 14,566 12,426 9,150 8,011 7,836 10,462 11,813 9,517 Durable goods 83,207 94,172 60,950 101,709 76,590 68,066 52,829 55,175 69,570 75,446 63,877 Housing repair materials 105,867 141,950 32,633 162,705 93,531 46,953 16,288 38,434 57,351 71,481 50,578 Insurance and other services 2,182 2,190 2,166 2,607 1,218 1,360 3,086 1,581 1,943 1,621 2,283 Total 657,953 721,249 529,488 759,903 631,073 562,075 492,293 521,225 568,804 616,527 551,250 Consumption share (%) Food 29.0 26.8 35.1 25.6 29.9 32.9 38.2 34.9 33.0 31.4 33.7 Alcohol and tobacco 0.9 0.6 1.9 0.5 0.6 1.6 2.2 1.4 1.3 1.2 1.7 Clothing and footwear 8.0 6.7 11.5 5.9 8.9 10.9 12.3 12.1 10.4 9.3 10.5 Education 2.4 2.6 1.8 2.9 1.8 1.8 1.9 2.4 1.9 1.6 1.2 Health 4.4 4.3 4.7 4.3 4.2 5.1 4.1 4.0 4.9 4.6 3.9 Transport 7.4 6.5 9.7 6.3 7.1 8.1 11.9 8.6 8.2 8.8 9.3 Communication 3.1 3.2 2.9 3.3 3.1 3.1 2.6 2.8 2.8 3.2 3.1 Fuel, energy, and utilities 5.1 5.5 4.0 5.3 6.0 5.4 2.2 5.3 4.5 5.4 4.0 Personal care 4.3 4.3 4.3 4.1 4.7 4.5 4.0 4.4 4.4 4.4 4.8 Household equipment, 3.2 3.0 3.7 2.9 3.4 3.8 3.6 3.9 3.6 3.3 3.9 71 maintenance, and services Recreation 1.7 1.8 1.5 1.9 1.8 1.5 1.5 1.4 1.7 1.7 1.6 Durable goods 12.2 12.4 11.4 12.7 11.8 11.8 10.9 10.5 11.8 12.1 11.3 Housing repair materials 18.0 22.1 7.0 24.1 16.6 9.3 3.9 8.2 11.2 12.9 10.5 Insurance and other services 0.3 0.3 0.4 0.3 0.2 0.2 0.6 0.3 0.3 0.3 0.4 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 ANNEX Source: HSES 2022. ANNEX Table B. 22 Per adult equivalent monthly average consumption by main consumption categories and by poverty status in urban and rural areas Total Urban Rural Non-Poor Poor Non-Poor Poor Non-Poor Poor Average consumption (2022 MNT) Food 218 038 130 445 221 359 120 558 209 985 143 423 Alcohol and tobacco 6 098 4 248 4 019 2 385 11 141 6 693 Clothing and footwear 63 958 33 421 58 377 27 483 77 492 41 215 Education 25 601 5 826 29 017 5 935 17 319 5 682 Health 31 021 11 156 32 655 12 908 27 058 8 856 Transport 62 814 18 856 59 753 15 739 70 237 22 947 Communication 24 803 10 870 27 397 12 274 18 515 9 026 Fuel, energy, and utilities 34 655 19 957 39 731 26 331 22 347 11 589 Personal care 33 919 17 005 36 186 18 115 28 420 15 549 Household equipment, 25 588 9 357 25 667 8 929 25 396 9 919 maintenance, and services Recreation 14 318 6 410 16 007 6 944 10 222 5 708 Durable goods 104 486 26 029 115 029 24 270 78 925 28 337 Housing repair materials 136 471 23 636 175 247 30 351 42 450 14 821 Insurance and other services 2 693 811 2 669 585 2 749 1 108 Total 784 463 318 026 843 112 312 807 642 255 324 875 Consumption share (%) Food 27.5 41.9 25.7 39.3 33.1 45.1 Alcohol and tobacco 0.9 1.4 0.5 0.8 1.8 2.1 Clothing and footwear 7.8 10.1 6.6 8.4 11.4 12.1 Education 2.5 1.4 2.7 1.5 1.9 1.3 Health 4.5 4.0 4.3 4.7 5.0 3.3 Transport 7.6 5.3 6.7 4.5 10.4 6.1 Communication 3.1 3.4 3.2 3.9 2.9 2.9 Fuel, energy, and utilities 4.9 7.0 5.2 9.4 4.1 4.0 Personal care 4.2 5.2 4.1 5.7 4.2 4.7 Household equipment, 3.2 3.0 3.0 2.9 3.8 3.1 maintenance, and services Recreation 1.7 1.9 1.8 2.1 1.5 1.6 Durable goods 12.6 7.9 12.8 7.4 12.0 8.5 Housing repair materials 19.2 7.3 23.1 9.4 7.5 4.8 Insurance and other services 0.3 0.2 0.3 0.2 0.4 0.3 Total 100.0 100.0 100.0 100.0 100.0 100.0 Source: HSES 2022. 72 Mongolia Poverty Update 2022: New Methods, New Insights Table B. 23 Per adult equivalent monthly average consumption by consumption category, poverty status, and location Total Ulaanbaatar Aimag center Soum center Countryside Non-poor Poor Non-poor Poor Non-poor Poor Non-poor Poor Non-poor Poor Average consumption (2022 MNT) Food 218,038 130,445 224,864 114,975 212,687 131,342 204,676 139,810 217,131 146,490 Alcohol and tobacco 6,098 4,248 3,976 2,155 4,125 2,830 9,796 6,471 12,950 6,882 Clothing and footwear 63,958 33,421 54,246 24,069 68,599 34,078 76,802 37,373 78,420 44,476 Education 25,601 5,826 33,440 6,017 18,072 5,775 16,663 5,966 18,203 5,441 Health 31,021 11,156 34,397 14,248 28,343 10,321 29,830 9,773 23,327 8,079 Transport 62,814 18,856 60,286 16,184 58,433 14,879 62,526 15,988 80,617 28,853 Communication 24,803 10,870 29,167 13,241 23,016 10,406 20,922 9,789 15,274 8,379 Fuel, energy, and utilities 34,655 19,957 40,377 26,778 38,131 25,469 30,579 17,780 11,266 6,335 Personal care 33,919 17,005 36,662 17,950 35,009 18,433 30,876 16,207 25,113 14,990 Household equipment, maintenance, 25,588 9,357 25,530 8,562 26,006 9,638 27,856 9,609 22,085 10,183 and services Recreation 14,318 6,410 16,586 7,248 14,572 6,357 10,603 5,855 9,709 5,583 Mongolia Poverty Update 2022: New Methods, New Insights Durable goods 104,486 26,029 123,117 24,153 95,011 24,496 86,077 27,219 69,296 29,285 Housing repair materials 136,471 23,636 198,600 32,669 117,457 25,872 58,725 20,258 20,541 10,208 Insurance and other services 2,693 811 3,153 629 1,472 501 1,680 633 4,188 1,511 Total 784,463 318,026 884,402 308,879 740,933 320,396 667,612 322,730 608,121 326,696 Consumption share (%) Food 27.5 41.9 24.7 38.1 28.7 41.5 31.0 44.3 36.2 45.9 Alcohol and tobacco 0.9 1.4 0.5 0.7 0.6 0.9 1.6 2.0 2.2 2.1 Clothing and footwear 7.8 10.1 5.8 7.4 8.7 10.2 10.9 11.0 12.1 13.2 Education 2.5 1.4 3.0 1.5 1.8 1.4 1.8 1.4 2.1 1.2 Health 4.5 4.0 4.3 5.1 4.3 3.7 5.3 3.8 4.5 2.8 Transport 7.6 5.3 6.4 4.7 7.4 4.1 8.8 4.2 13.0 8.0 Communication 3.1 3.4 3.2 4.3 3.0 3.3 3.1 3.1 2.5 2.7 Fuel, energy, and utilities 4.9 7.0 5.0 9.8 5.7 8.8 5.2 6.1 2.3 2.0 Personal care 4.2 5.2 4.0 5.7 4.6 5.6 4.4 4.8 3.9 4.6 Household equipment, maintenance, 3.2 3.0 2.9 2.8 3.4 3.1 4.0 3.0 3.7 3.2 and services 73 Recreation 1.7 1.9 1.8 2.3 1.8 1.8 1.5 1.6 1.5 1.6 Durable goods 12.6 7.9 13.0 7.3 12.3 7.4 12.4 8.0 11.5 8.9 Housing repair materials 19.2 7.3 25.1 10.1 17.5 8.0 9.8 6.5 4.0 3.3 Insurance and other services 0.3 0.2 0.3 0.2 0.2 0.1 0.2 0.2 0.6 0.5 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Source: HSES 2022. ANNEX Table B. 24 Per adult equivalent monthly average consumption by consumption category, poverty status, and region ANNEX Total Western Khangai Central Eastern Ulaanbaatar Non- Non- Non- Non- Non- Non- Poor Poor Poor Poor Poor Poor poor poor poor poor poor poor 74 Average consumption (2022 MNT) Food 218,038 130,445 205,027 140,185 210,162 140,340 214,714 138,765 215,966 138,465 224,864 114,975 Alcohol and tobacco 6,098 4,248 8,225 5,184 8,328 6,200 7,411 4,660 10,228 5,631 3,976 2,155 Clothing and footwear 63,958 33,421 78,658 43,031 74,107 39,194 69,330 35,702 75,277 35,529 54,246 24,069 Education 25,601 5,826 20,486 7,801 19,331 5,460 16,083 4,417 11,568 4,133 33,440 6,017 Health 31,021 11,156 23,725 7,551 30,239 11,219 28,707 9,722 24,937 7,459 34,397 14,248 Transport 62,814 18,856 62,029 21,233 63,825 20,295 67,284 20,821 71,128 18,758 60,286 16,184 Communication 24,803 10,870 18,028 8,574 19,166 8,887 23,086 10,999 21,190 10,286 29,167 13,241 Fuel, energy, and utilities 34,655 19,957 29,449 18,144 27,280 12,652 32,431 19,582 22,916 13,899 40,377 26,778 Personal care 33,919 17,005 27,482 15,716 31,701 16,042 32,113 17,521 33,974 17,248 36,662 17,950 Household equipment, maintenance, 25,588 9,357 25,164 11,307 25,959 8,749 25,120 9,419 27,022 10,207 25,530 8,562 and services Recreation 14,318 6,410 9,232 5,406 13,017 5,376 13,406 6,921 11,049 6,712 16,586 7,248 Durable goods 104,486 26,029 72,443 25,097 89,988 28,936 90,912 27,965 84,790 25,578 123,117 24,153 Housing repair materials 136,471 23,636 50,645 17,165 78,077 16,103 87,387 22,649 67,777 19,078 198,600 32,669 Insurance and other services 2,693 811 2,109 661 2,211 1,409 1,952 606 3,151 693 3,153 629 Total 784,463 318,026 632,702 327,055 693,391 320,862 709,934 329,749 680,973 313,676 884,402 308,879 Consumption share (%) Food 27.5 41.9 33.0 43.5 30.9 44.7 30.1 43.1 31.7 44.8 24.7 38.1 Alcohol and tobacco 0.9 1.4 1.4 1.5 1.2 1.9 1.1 1.6 1.7 2.0 0.5 0.7 Clothing and footwear 7.8 10.1 12.0 12.7 10.2 11.6 9.2 10.5 10.4 11.1 5.8 7.4 Education 2.5 1.4 2.5 2.0 2.1 1.2 1.6 1.1 1.3 0.9 3.0 1.5 Health 4.5 4.0 4.3 2.7 5.1 4.1 4.7 3.5 4.1 2.8 4.3 5.1 Transport 7.6 5.3 9.2 5.7 8.7 5.6 9.1 5.5 10.0 5.2 6.4 4.7 Communication 3.1 3.4 2.9 2.7 2.7 2.8 3.2 3.3 3.1 3.3 3.2 4.3 Fuel, energy, and utilities 4.9 7.0 5.1 6.3 4.5 4.4 5.2 6.4 3.9 4.9 5.0 9.8 Personal care 4.2 5.2 4.3 4.9 4.4 4.8 4.3 5.1 4.7 5.3 4.0 5.7 Household equipment, maintenance, 3.2 3.0 3.9 3.5 3.7 2.8 3.3 3.0 4.0 3.5 2.9 2.8 and services Recreation 1.7 1.9 1.3 1.5 1.7 1.5 1.7 2.0 1.5 2.0 1.8 2.3 Durable goods 12.6 7.9 11.1 7.6 12.4 8.8 12.5 8.1 12.0 7.7 13.0 7.3 Housing repair materials 19.2 7.3 8.8 5.3 12.2 5.5 13.6 6.6 11.3 6.1 25.1 10.1 Insurance and other services 0.3 0.2 0.3 0.2 0.3 0.4 0.3 0.2 0.4 0.2 0.3 0.2 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Mongolia Poverty Update 2022: New Methods, New Insights Source: HSES 2022. Table B. 25 Per adult equivalent monthly average consumption by consumption decile (2022 MNT) Location Region National Urban Rural Aimag Ulaanbaatar Soum center Countryside Western Khangai Central Eastern center Consumption decile Poorest 243,094 244,898 240,561 243,151 249,054 243,583 238,360 243,599 238,859 265,377 224,050 II 337,847 352,650 319,473 357,738 343,804 330,855 308,976 317,650 320,014 360,258 307,910 III 404,615 432,974 370,357 445,382 411,241 388,361 355,702 369,006 373,893 420,333 362,882 IV 465,626 505,226 414,976 523,137 472,543 440,259 393,893 412,844 424,877 478,024 415,283 V 528,508 582,300 460,142 608,933 535,478 490,299 432,815 454,756 474,991 533,291 468,388 VI 602,867 668,829 507,629 700,533 605,888 542,829 472,207 498,037 533,876 592,449 527,001 VII 689,420 762,677 565,394 804,461 681,441 603,263 521,444 552,748 606,336 666,701 595,284 VIII 799,631 886,876 639,815 941,579 778,600 680,790 589,534 626,704 689,567 754,861 672,186 IX 973,425 1,085,648 744,597 1,160,001 918,475 793,588 684,476 728,191 820,473 873,935 795,308 Wealthiest 1,534,937 1,690,876 1,032,204 1,815,136 1,315,066 1,107,950 927,058 1,009,677 1,206,456 1,220,887 1,146,971 Total 657,953 721,249 529,488 759,903 631,073 562,075 492,293 521,225 568,804 616,527 551,250 Mongolia Poverty Update 2022: New Methods, New Insights Note: Deciles were constructed separately for each domain. They comprise 10% of the population of the respective region. Sources: HSES 2022 Table B. 26 Share of total consumption by decile Location Region National Urban Rural Aimag Ulaanbaatar Soum center Countryside Western Khangai Central Eastern center Consumption decile Poorest 3.5 3.2 4.3 3.0 3.7 4.1 4.5 4.4 4.0 4.0 3.8 II 4.9 4.7 5.7 4.5 5.2 5.6 5.9 5.8 5.4 5.5 5.2 III 5.9 5.8 6.7 5.6 6.3 6.7 6.9 6.8 6.3 6.5 6.3 IV 6.9 6.8 7.6 6.7 7.3 7.6 7.6 7.7 7.3 7.5 7.5 V 7.9 7.9 8.5 7.8 8.3 8.6 8.5 8.5 8.2 8.4 8.3 VI 9.1 9.1 9.5 9.0 9.5 9.5 9.4 9.5 9.3 9.5 9.5 75 VII 10.4 10.5 10.6 10.5 10.7 10.7 10.6 10.5 10.6 10.8 10.8 VIII 12.2 12.3 12.2 12.5 12.3 12.2 12.1 12.2 12.2 12.2 12.1 IX 15.1 15.4 14.4 15.5 14.8 14.3 14.3 14.2 14.7 14.4 14.6 Wealthiest 24.2 24.3 20.6 24.8 22.0 20.7 20.2 20.3 22.0 21.1 22.0 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Note: Deciles were constructed separately for each domain. They comprise 10% of the population of the respective region. Sources: HSES 2022 ANNEX ANNEX Table B. 27 Poverty statistics by characteristics of the household head and urban and rural area Poverty headcount (%) Share of population (%) Share of poor (%) National Urban Rural National Urban Rural National Urban Rural Total 27.1 23.0 35.5 100.0 100.0 100.0 100.0 100.0 100.0 Gender Male 26.1 21.3 34.9 80.8 78.0 86.4 77.8 72.3 84.9 Female 31.3 28.8 39.6 19.2 22.0 13.6 22.2 27.7 15.1 Age 15-29 27.1 20.1 39.3 7.2 6.8 7.9 7.2 6.0 8.8 30-39 26.4 21.3 37.0 29.2 29.4 28.8 28.5 27.3 30.0 40-49 29.8 25.1 38.6 28.8 28.1 30.2 31.6 30.7 32.9 50-59 26.9 24.6 31.3 18.5 18.3 18.9 18.3 19.6 16.6 60+ 24.0 21.8 29.3 16.3 17.3 14.2 14.4 16.4 11.7 Educational attainment None 56.1 55.5 56.3 5.4 2.2 12.1 11.2 5.2 19.1 Primary 48.4 50.9 47.3 6.1 2.8 12.9 10.9 6.2 17.2 Lower secondary 40.9 42.0 39.9 16.2 10.8 27.1 24.4 19.7 30.5 Higher secondary 32.6 32.9 32.0 27.6 30.0 22.9 33.3 42.9 20.7 Vocational 21.7 21.3 22.8 17.5 20.3 11.7 14.0 18.9 7.5 University or higher 6.3 4.9 13.5 27.2 34.0 13.3 6.3 7.2 5.0 Employment Labor force participation Employed 24.2 18.7 34.7 67.1 65.8 69.8 59.9 53.5 68.2 Unemployed 51.6 47.5 60.1 (*) (*) (*) (*) (*) (*) Out of the labor force 32.3 30.5 36.3 31.5 32.8 28.8 37.5 43.6 29.4 Among those employed, Economic activity Agriculture 40.1 36.5 40.5 15.3 2.5 41.2 22.5 4.0 46.9 Industry 22.6 21.2 30.2 20.1 25.3 9.5 16.8 23.4 8.1 Services 17.6 15.8 24.6 31.8 38.0 19.1 20.6 26.2 13.2 Sector of employment Herders 40.9 39.6 41.0 14.0 1.8 38.7 21.1 3.1 44.7 Private 20.9 19.1 30.9 35.6 44.8 17.0 27.4 37.1 14.8 Public 18.3 16.5 22.3 11.9 12.2 11.2 8.0 8.8 7.0 State-owned enterprise 15.9 14.7 21.6 5.6 7.0 2.9 3.3 4.5 1.8 (*) - The number of observations is less than 2% of the total sample Source: HSES 2022. 76 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX Table B. 28 Poverty profile by characteristics of the dwelling and urban and rural area Poverty headcount (%) Share of population (%) Share of poor (%) National Urban Rural National Urban Rural National Urban Rural Total 27.1 23.0 35.5 100.0 100.0 100.0 100.0 100.0 100.0 Dwelling Ger 51.9 59.7 45.8 33.4 21.7 57.1 63.9 56.4 73.7 Apartment 2.6 2.5 5.7 30.4 43.3 4.2 (*) 4.7 (*) House 24.2 24.6 23.4 35.0 33.8 37.3 31.2 36.2 24.6 Other 1/ 42.5 51.0 27.4 (*) (*) (*) (*) 2.6 (*) Improved water source 2/ No 41.0 31.4 42.2 10.3 1.6 28.0 15.6 2.2 33.3 Yes 25.5 22.8 32.9 89.7 98.4 72.0 84.4 97.8 66.7 Improved sanitation 3/ No 38.9 40.3 37.2 66.6 53.0 94.4 95.5 93.0 98.7 Yes 3.7 3.4 7.9 33.4 47.0 5.6 4.5 7.0 1.3 Heating Centralized 3.8 3.5 8.1 32.4 45.4 5.8 4.5 7.0 (*) Electricity 13.4 13.1 16.6 (*) 3.6 (*) (*) (*) (*) Improved stove 24.2 26.6 12.5 7.4 10.0 2.2 9.3 15.6 (*) Traditional stove 43.1 47.8 39.4 51.6 34.4 86.4 82.0 71.6 95.8 Other 12.6 13.5 10.2 (*) (*) (*) (*) (*) (*) Electricity Central 24.8 22.8 31.4 86.4 99.2 60.4 78.9 98.5 53.3 Solar 42.1 45.2 42.0 13.3 (*) 38.9 20.7 1.4 46.0 Other 35.8 29.0 37.5 (*) (*) (*) (*) (*) (*) 1/ Other includes student residences, company dormitories and any other building designed not to be inhabited by households. 2/ Improved water sources: Households use a centralized water system connected to water supply pipelines, tube wells, boreholes, protected wells, protected springs, portable water service, or bottled water. 3/ Improved sanitation: Households use toilets connected to sewer systems, bio toilets, septic tanks, or boreholes (suction). 4/ Simple heating units fueled by firewood, coal or dung. 5/ Electric heating unit, private low pressure stove, others. 6/ Wind systems, small gen-sets, others. (*) - The number of observations is less than 2% of the total sample Source: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 77 Table B. 29 Poverty profile by dwelling characteristics and location ANNEX Poverty headcount (%) Share of population (%) Share of poor (%) Aimag Soum Country - Aimag Soum Country - Aimag Soum Country - Ulaanbaatar Ulaanbaatar Ulaanbaatar center center side center center side center center side 78 Total 21.6 26.1 30.6 41.2 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Dwelling Ger 63.4 53.4 49.8 43.6 19.6 26.7 38.6 78.2 57.4 54.7 62.9 82.9 Apartment 2.2 3.5 6.1 0.0 49.0 30.0 7.3 (*) 5.1 4.0 (*) (*) House 24.8 24.3 19.9 33.5 30.6 41.4 52.1 20.5 35.1 38.5 33.9 16.7 Other 1/ 62.4 38.9 26.8 29.4 (*) (*) (*) (*) (*) 2.8 (*) (*) Improved water source 2/ No 39.0 29.5 33.7 43.7 (*) 4.3 8.1 50.8 (*) 4.9 8.9 53.9 Yes 21.6 26.0 30.3 38.5 99.5 95.7 91.9 49.2 99.2 95.1 91.1 46.1 Improved sanitation 3/ No 41.7 37.9 33.1 41.5 48.0 64.6 90.4 98.9 92.6 93.7 97.7 99.7 Yes 3.1 4.6 7.5 12.3 52.0 35.4 9.6 1.1 7.4 6.3 2.3 0.3 Heating Centralized 3.1 5.0 8.1 8.3 49.9 35.0 10.2 (*) 7.1 6.7 (*) (*) Electricity 13.9 7.2 14.2 52.1 4.5 (*) (*) (*) 2.9 (*) (*) (*) Improved stove 28.3 18.6 11.7 17.3 13.3 2.4 3.6 (*) 21.8 3.4 2.0 (*) Traditional stove 53.3 41.5 36.6 41.9 26.0 54.2 77.2 96.8 64.0 86.1 92.3 98.7 Other 14.0 12.5 9.4 14.4 (*) (*) (*) (*) (*) (*) (*) (*) Electricity Central 21.6 25.7 30.0 39.0 99.7 98.1 96.4 19.2 99.4 96.6 94.6 18.2 Solar 41.7 46.5 45.8 41.8 (*) (*) 3.4 79.5 (*) 3.1 5.1 80.6 Other 0.0 36.4 55.8 35.6 (*) (*) (*) (*) (*) (*) (*) (*) 1/ Other includes student residences, company dormitories and any other building designed not to be inhabited by households. 2/ Improved water sources: Households use a centralized water system connected to water supply pipelines, tube wells, boreholes, protected wells, protected springs, portable water service, or bottled water. 3/ Improved sanitation: Households use toilets connected to sewer systems, bio toilets, septic tanks, or boreholes (suction). 4/ Simple heating units fueled by firewood, coal or dung. 5/ Electric heating unit, private low pressure stove, others. 6/ Wind systems, small gen-sets, others. (*) - The number of observations is less than 2% of the total sample Source: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights Table B. 30 Poverty profile by dwelling characteristics and region Poverty headcount (%) Share of population (%) Share of poor (%) Ulaan- Ulaan- Ulaan- Western Khangai Central Eastern Western Khangai Central Eastern Western Khangai Central Eastern baatar baatar baatar Total 36.5 33.4 24.6 35.3 21.6 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Dwelling Ger 47.1 52.4 40.3 48.0 63.4 49.8 48.2 38.9 45.2 19.6 64.4 75.6 63.8 61.5 57.4 Apartment 2.8 0.5 5.2 7.8 2.2 5.7 12.5 22.8 14.4 49.0 (*) (*) 4.9 (*) 5.1 House 28.9 20.2 20.0 29.3 24.8 43.7 38.5 35.8 37.2 30.6 34.6 23.3 29.2 30.9 35.1 Other 1/ 25.8 40.1 21.3 50.3 62.4 (*) (*) 2.4 3.1 (*) (*) (*) 2.1 4.5 (*) Improved water source 2/ No 41.9 47.5 28.7 31.4 39.0 29.0 21.5 12.2 8.5 (*) 33.3 30.4 14.2 7.6 (*) Yes 34.2 29.6 24.0 35.7 21.6 71.0 78.5 87.8 91.5 99.5 66.7 69.6 85.8 92.4 99.2 Improved sanitation 3/ No 39.3 38.6 31.6 40.9 41.7 92.0 85.9 72.2 82.0 48.0 99.1 99.2 93.0 94.9 92.6 Yes 4.3 1.9 6.2 10.1 3.1 8.0 14.1 27.8 18.0 52.0 0.9 0.8 7.0 5.1 7.4 Mongolia Poverty Update 2022: New Methods, New Insights Heating Centralized 4.3 1.6 6.6 11.8 3.1 7.8 13.9 27.7 18.6 49.9 (*) (*) 7.5 6.2 7.1 Electricity 24.4 1.8 16.1 10.0 13.9 (*) (*) (*) (*) 4.5 (*) (*) (*) (*) 2.9 Improved stove 20.0 12.6 10.5 16.4 28.3 2.6 2.7 2.1 1.0 13.3 1.9 2.1 1.9 (*) 21.8 Traditional stove 42.1 41.3 33.9 43.1 53.3 79.8 78.0 64.3 74.7 26.0 92.2 96.5 88.6 91.1 64.0 Other 18.2 5.5 6.8 8.2 14.0 (*) (*) (*) (*) (*) (*) (*) (*) (*) (*) Electricity Central 33.5 27.0 23.0 36.5 21.6 70.8 71.9 81.6 74.3 99.7 65.0 58.0 76.4 76.8 99.4 Solar 44.4 50.0 31.1 31.4 41.7 28.0 27.8 18.1 25.5 (*) 34.0 41.6 23.0 22.7 (*) Other 27.2 47.3 47.8 89.9 0.0 (*) (*) (*) (*) (*) (*) (*) (*) (*) (*) 1/ Other includes student residences, company dormitories and any other building designed not to be inhabited by households. 2/ Improved water sources: Households use a centralized water system connected to water supply pipelines, tube wells, boreholes, protected wells, protected springs, portable water service, or bottled water. 3/ Improved sanitation: Households use toilets connected to sewer systems, bio toilets, septic tanks, or boreholes (suction). 4/ Simple heating units fueled by firewood, coal or dung. 5/ Electric heating unit, private low pressure stove, others. 6/ Wind systems, small gen-sets, others. (*) - The number of observations is less than 2% of the total sample Source: HSES 2022. 79 ANNEX ANNEX Table B. 31 Highest educational attainment of the population 18 years and older (%) Lower Upper University None Primary Vocational Total secondary secondary or higher National 4.3 4.9 13.5 30.4 16.7 30.3 100.0 Location Urban 2.1 2.4 9.1 31.5 18.4 36.6 100.0 Rural 8.9 9.9 22.6 28.0 13.0 17.6 100.0 Ulaanbaatar 1.1 1.4 7.8 31.6 18.9 39.3 100.0 Aimag center 4.4 4.7 12.1 31.2 17.4 30.2 100.0 Soum center 5.7 6.8 17.8 28.0 16.0 25.7 100.0 Countryside 12.7 13.5 28.2 28.1 9.5 8.0 100.0 Western 10.5 10.0 16.0 26.8 13.2 23.5 100.0 Khangai 8.6 8.3 19.4 29.7 12.9 21.2 100.0 Central 2.7 6.1 17.6 32.0 17.6 24.1 100.0 Eastern 7.5 7.2 23.9 26.4 15.9 19.2 100.0 Gender Male 5.2 5.3 16.2 31.1 17.2 25.1 100.0 Female 3.5 4.5 11.2 29.7 16.2 34.8 100.0 Consumption quintile Poorest 9.4 9.0 22.0 37.2 14.4 8.1 100.0 II 7.0 7.4 18.5 33.8 17.2 16.1 100.0 III 4.1 5.2 14.3 32.5 17.9 26.1 100.0 IV 1.9 3.0 10.3 29.4 17.9 37.5 100.0 Wealthiest 0.5 1.0 4.9 20.9 15.7 57.0 100.0 Poverty Non-poor 2.8 3.6 11.0 28.4 17.3 36.9 100.0 Poor 9.2 8.7 21.3 36.5 14.8 9.5 100.0 Source: HSES 2022. 80 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX Table B. 32 Characteristics of population 18 years and older by education attainment (%) Lower Higher None Primary Vocational University Total secondary secondary National 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Location Urban 31.8 32.9 44.9 69.5 74.2 80.9 67.0 Rural 68.2 67.1 55.1 30.5 25.8 19.2 33.0 Ulaanbaatar 11.5 13.9 27.2 49.2 53.4 61.1 47.2 Aimag center 20.3 19.0 17.7 20.4 20.8 19.8 19.8 Soum center 23.5 25.1 23.5 16.5 17.2 15.2 17.9 Countryside 44.7 42.1 31.7 14.0 8.6 4.0 15.2 Western 31.3 26.4 15.2 11.4 10.2 10.0 12.9 Khangai 36.1 30.8 26.1 17.7 14.0 12.7 18.1 Central 9.3 18.9 19.5 15.8 15.8 11.9 15.0 Eastern 11.8 10.0 12.0 5.9 6.5 4.3 6.8 Gender Male 56.1 50.4 55.6 47.6 48.0 38.5 46.5 Female 43.9 49.7 44.4 52.4 52.0 61.5 53.5 Consumption quintile Poorest 38.0 32.2 28.5 21.4 15.1 4.6 17.5 II 30.9 29.2 26.3 21.4 19.8 10.2 19.2 III 19.2 21.4 21.4 21.7 21.8 17.4 20.2 IV 9.2 12.8 15.9 20.2 22.4 25.8 20.8 Wealthiest 2.8 4.4 8.1 15.4 21.0 42.0 22.3 Poverty Non-poor 48.5 56.6 62.0 70.9 78.5 92.4 75.8 Poor 51.5 43.4 38.0 29.1 21.5 7.6 24.2 Source: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 81 ANNEX Table B. 33 Primary, lower secondary, and upper secondary enrollment rates (%) Net enrollment rates Primary Lower secondary Upper secondary Total Non-poor Poor Total Non-poor Poor Total Non-poor Poor National 90.8 91.7 88.9 87.2 88.1 85.4 75.2 79.9 66.5 Location Urban 91.4 92.1 89.3 88.1 89.1 85.3 76.7 81.5 65.5 Rural 89.6 90.6 88.3 85.6 85.6 85.6 72.4 76.1 67.8 Ulaanbaatar 91.6 92.3 89.4 87.9 89.1 84.2 76.4 81.0 63.9 Aimag center 90.9 91.6 89.3 88.6 89.1 87.3 77.4 82.8 68.0 Soum center 90.9 91.5 89.9 86.7 85.7 88.8 77.0 82.1 70.0 Countryside 88.1 89.3 86.8 84.4 85.5 83.1 68.2 70.2 65.9 Western 88.2 90.5 84.9 86.9 87.9 85.3 71.2 78.0 63.3 Khangai 91.6 92.6 89.9 87.8 87.4 88.5 78.3 80.5 75.2 Central 90.1 90.3 89.4 83.6 84.6 81.2 73.2 78.2 63.3 Eastern 90.3 89.8 91.1 90.2 90.3 90.0 72.0 76.5 66.6 Gender Male 90.3 91.6 87.4 86.5 86.8 85.8 70.8 76.4 60.5 Female 91.4 91.8 90.5 88.1 89.5 85.1 79.8 83.5 72.9 Gross enrollment rates Primary Lower secondary Upper secondary Total Non-poor Poor Total Non-poor Poor Total Non-poor Poor National 95.5 96.0 94.2 94.4 94.5 94.2 93.5 99.2 82.9 Location Urban 95.8 96.2 94.9 95.0 95.4 93.7 95.0 100.2 82.7 Rural 94.7 95.7 93.3 93.3 92.4 94.8 90.8 96.9 83.1 Ulaanbaatar 96.3 96.7 95.3 94.6 95.2 92.9 95.4 99.4 84.5 Aimag center 94.7 94.8 94.2 95.8 96.1 95.3 94.2 102.4 80.0 Soum center 94.9 95.3 94.3 93.5 91.4 97.6 98.6 109.3 84.1 Countryside 94.5 96.3 92.5 93.1 93.5 92.7 83.7 84.8 82.3 Western 94.7 97.2 91.2 97.4 96.7 98.6 86.2 94.3 76.8 Khangai 94.9 95.9 93.1 93.6 93.1 94.6 94.7 99.8 87.6 Central 94.3 93.6 96.1 90.8 91.7 88.8 100.7 108.3 85.8 Eastern 94.9 94.7 95.1 96.9 95.9 98.5 81.7 86.7 75.9 Gender Male 95.1 96.6 91.8 93.6 93.2 94.5 88.8 95.8 75.8 Female 95.9 95.5 97.0 95.3 96.0 93.9 98.5 102.9 90.4 Note:The net enrollment rate for a particular level is defined as the ratio of the number of students in the relevant age group attending that level with respect to the number of children in the relevant age group for that level. The gross enrollment rate for a certain level is the ratio of the number of students attending that level irrespective of their age with respect to the total number of children in the relevant age group for that level. The age group for primary age children aged 6 to 10, while for lower secondary are those aged 11 to 14 and higher secondary are those aged 15 to 17. Source: HSES 2022. 82 Mongolia Poverty Update 2022: New Methods, New Insights Table B. 34 Population reporting health complaints by location and region, 2022 Location Region National Urban Rural Ulaan- Aimag Soum Country Western Khangai Central Eastern baatar center center - side Complaints in the Last 30 Days (% of Population) 8.1 9.4 5.6 9.8 8.3 6.5 4.7 7.7 5.1 5.2 11.7 Type of health complaint (% of people with complaints) a/ Diseases of the cardiovascular system 14.7 12.4 22.4 11.8 14.2 22.5 22.2 14.6 24.7 16.1 18.7 Diseases of the respiratory system 33.6 36.9 22.4 39.5 29.7 23.1 21.3 18.2 21.2 29.8 37.0 Diseases of the digestive system 9.4 9.4 9.7 9.5 8.9 9.9 9.3 8.8 8.9 7.9 11.6 Diseases of genitourinary system 3.8 3.5 5.0 3.1 4.4 4.7 5.5 5.0 6.5 3.6 3.5 Diseases of nervous system and sense organs 8.8 7.7 12.6 7.0 9.7 12.8 12.3 12.8 12.1 10.6 8.8 Injury, poisoning and certain other consequences of 5.7 5.6 6.0 5.4 6.0 5.9 6.1 6.7 5.8 4.7 6.7 external causes Diseases of musculosceletal system and connective 6.1 5.8 6.8 5.2 7.6 7.5 5.7 5.4 7.1 10.7 6.3 tissue Pregnancy, childbirth and the puerperium 1.4 1.1 2.3 (*) 1.8 (*) (*) 3.0 (*) (*) (*) Mongolia Poverty Update 2022: New Methods, New Insights Cancer 1.6 1.6 1.6 (*) 1.6 (*) (*) (*) (*) (*) (*) Preventive 3.2 2.7 4.8 2.2 4.0 5.1 4.5 8.2 (*) (*) 6.7 Other /Tooth/ 5.1 5.3 4.6 4.9 6.2 5.1 3.9 5.0 7.5 4.4 4.4 Sought treatment (% of people with complaints) 85.3 85.5 84.5 86.4 83.2 86.9 80.7 71.2 86.6 89.0 91.8 Treatment location (% of people who sought treatment) Central clinic and specialized hospital 16.7 18.0 12.3 21.0 9.2 13.0 11.2 9.2 12.3 13.2 8.8 Aimag/district clinic 31.4 33.8 23.5 25.9 56.4 20.8 28.0 46.0 37.9 39.7 32.4 Soum, inter-soum and family clinic 41.1 36.5 56.8 40.8 24.1 59.1 52.9 34.3 40.0 37.9 53.3 Private 10.4 11.3 7.3 11.9 9.5 7.0 7.9 10.3 9.5 8.4 5.1 Abroad (*) (*) (*) (*) (*) (*) (*) (*) (*) (*) (*) Other (*) (*) (*) (*) (*) (*) (*) (*) (*) (*) (*) Did not seek treatment (% of people with complaints) 14.7 14.5 15.5 13.6 16.8 13.1 19.3 28.8 13.4 11.0 8.2 Reasons for not seeking treatment Not serious enough 52.2 54.5 44.9 57.9 46.9 47.2 42.5 41.9 54.7 49.9 41.9 Health facility too far 29.2 27.0 36.0 26.0 29.4 33.5 38.7 44.4 14.7 18.9 32.5 83 No transportation 18.6 18.5 19.1 16.1 23.7 19.3 18.8 13.7 30.6 31.2 25.6 а/ Combines up to two responses. (*) - sample size is less than 29 Source: HSES 2022. ANNEX ANNEX Table B. 35 Population reporting health complaints by urban and rural areas and poverty status, 2022 National Urban Rural Non- Non- Non- Poor Poor Poor poor poor poor Complaints in the Last 30 Days (% of Population) 9.2 5.3 10.3 6.2 6.5 4.1 Type of health complaint (% of people with complaints) a/ Diseases of the cardiovascular system 15.1 12.9 13.2 8.0 22.3 22.5 Diseases of the respiratory system 34.4 30.0 37.1 35.7 23.6 18.8 Diseases of the digestive system 9.5 8.9 9.3 9.8 10.5 7.2 Diseases of genitourinary system 3.9 3.5 3.5 (*) 5.5 (*) Diseases of nervous system and sense organs 8.5 10.4 7.5 9.2 12.5 12.7 Injury, poisoning and certain other consequences of 5.8 4.9 5.7 4.6 6.2 5.5 external causes Diseases of musculosceletal system and connective 6.1 5.7 5.8 5.7 7.2 (*) tissue Pregnancy, childbirth and the puerperium 1.2 (*) 1.0 (*) 2.1 (*) Cancer 1.6 (*) 1.5 (*) 1.8 (*) Preventive 3.1 3.2 2.6 2.7 5.1 (*) Other /Tooth/ 5.0 5.8 5.1 6.4 4.6 (*) Sought treatment (% of people with complaints) 85.9 82.4 85.8 84.0 86.4 79.2 Treatment location (% of people who sought treatment) Central clinic and specialized hospital 17.4 13.4 18.2 16.7 14.2 6.4 Aimag/district clinic 30.6 35.7 32.6 40.2 22.6 26.3 Soum, inter-soum and family clinic 40.3 44.9 36.4 37.1 55.4 61.4 Private 11.3 5.9 12.2 6.0 7.8 (*) Abroad (*) (*) (*) (*) (*) (*) Other (*) (*) (*) (*) (*) (*) Did not seek treatment (% of people with complaints) 14.1 17.6 14.2 16.0 13.6 20.8 Reasons for not seeking treatment Not serious enough 53.2 48.6 56.0 47.3 42.0 50.5 Treated myself 30.2 25.4 28.2 21.2 38.1 32.0 Other 16.6 26.0 15.8 31.5 19.9 17.5 Other 16.6 26.0 15.8 31.5 19.9 17.5 а/ Combines up to two responses. (*) - sample size is less than 29 Source: HSES 2022. 84 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX Table B. 36 Population reporting health complaints by gender and poverty status, 2022 National Male Female Non- Non- Male Female Poor Poor poor poor Complaints in the Last 30 Days (% of Population) 7.1 9.2 8.1 4.4 10.3 6.1 Type of health complaint (% of people with complaints) a/ Diseases of the cardiovascular system 13.1 15.8 14.0 8.7 15.9 15.7 Diseases of the respiratory system 36.9 31.2 38.1 31.1 31.6 29.3 Diseases of the digestive system 9.0 9.7 9.0 9.1 9.9 8.9 Diseases of genitourinary system 3.0 4.5 3.1 (*) 4.5 4.2 Diseases of nervous system and sense organs 8.3 9.2 7.0 14.6 9.6 7.5 Injury, poisoning and certain other consequences of 7.1 4.6 7.5 5.2 4.6 4.7 external causes Diseases of musculosceletal system and connective 5.7 6.3 5.9 (*) 6.3 6.4 tissue Pregnancy, childbirth and the puerperium (*) 2.4 (*) (*) 2.1 (*) Cancer (*) 2.0 (*) (*) 2.0 (*) Preventive 2.8 3.4 2.8 (*) 3.4 3.5 Other /Tooth/ 5.2 5.1 5.1 5.5 4.9 6.1 Sought treatment (% of people with complaints) 85.0 85.5 86.0 80.1 85.9 83.9 Treatment location (% of people who sought treatment) Central clinic and specialized hospital 17.1 16.4 17.2 16.3 17.5 11.6 Aimag/district clinic 31.6 31.3 31.0 34.9 30.3 36.2 Soum, inter-soum and family clinic 41.7 40.6 41.2 44.6 39.7 45.1 Private 9.4 11.1 10.4 (*) 12.0 6.9 Abroad (*) (*) (*) (*) (*) (*) Other (*) (*) (*) (*) (*) (*) Did not seek treatment (% of people with complaints) 15.0 14.5 14.0 19.9 14.1 16.1 Reasons for not seeking treatment Not serious enough 46.6 56.4 46.5 46.7 58.0 50.1 Treated myself 30.4 28.3 32.3 23.6 28.6 26.9 Other 23.0 15.3 21.1 29.6 13.3 23.0 Other 23.0 15.3 21.1 29.6 13.3 23.0 а/ Combines up to two responses. (*) - sample size is less than 29 Source: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 85 ANNEX Table B. 37 Disabilities among population aged 18 and older (%) Location Region National Urban Rural Ulaan- Aimag Soum Country Western Khangai Central Eastern baatar center center - side Any disability 6.2 6.3 6.2 6.6 5.5 7.0 5.1 6.9 5.1 5.3 7.5 Type of disability Vision 1.7 1.7 1.7 1.7 1.6 1.9 1.5 2.2 1.2 1.4 2.5 Hearing 1.5 1.5 1.5 1.6 1.3 1.7 1.3 1.9 1.3 1.2 1.7 Mobility 3.0 3.0 3.0 3.2 2.7 3.6 2.2 3.2 2.5 2.6 3.5 Cognitive 1.2 1.3 1.1 1.3 1.2 1.2 1.1 1.3 1.2 1.1 0.8 Self-care 1.0 1.1 0.9 1.1 1.1 1.0 0.7 1.0 1.0 1.0 0.9 Communication 0.9 0.9 0.9 1.0 0.8 0.9 0.9 0.8 0.9 1.1 0.6 Source: HSES 2022. Table B. 38 Disabilities among population aged 18 and older by urban and rural areas and poverty status National Urban Rural Nonpoor Poor Nonpoor Poor Nonpoor Poor Any disability 5.8 7.7 5.7 8.4 5.9 6.9 Type of disability Vision 1.6 2.0 1.6 2.1 1.6 2.0 Hearing 1.3 2.1 1.4 2.1 1.3 2.1 Mobility 2.9 3.2 2.9 3.4 3.0 2.9 Cognitive 1.1 1.8 1.2 1.9 0.8 1.8 Self-care 1.0 1.3 1.0 1.4 0.8 1.0 Communication 0.8 1.4 0.8 1.5 0.7 1.4 Source: HSES 2022. Table B. 39 Disabilities among population aged 18 and older by gender and poverty status National Male Female Male Female Nonpoor Poor Nonpoor Poor Any disability 6.7 5.9 6.2 8.2 5.4 7.4 Type of disability Vision 1.8 1.6 1.7 2.2 1.5 1.9 Hearing 1.6 1.4 1.5 2.1 1.2 2.1 Mobility 2.9 3.1 2.8 3.0 3.1 3.3 Cognitive 1.5 1.0 1.3 2.0 0.8 1.7 Self-care 1.2 0.9 1.1 1.4 0.8 1.1 Communication 1.1 0.8 1.0 1.3 0.5 1.5 Source: HSES 2022. 86 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX Table B. 40 Employment status among population aged 15 and older (%) % of population by employment status % of employment status Out of the Out of the Employed Unemployed Total Employed Unemployed Total labor force labor force National 51.4 1.4 47.2 100.0 100.0 100.0 100.0 100.0 Location Urban 49.4 1.5 49.1 100.0 64.2 68.6 69.6 66.8 Rural 55.4 1.3 43.3 100.0 35.8 31.4 30.4 33.2 Ulaanbaatar 49.6 1.2 49.2 100.0 45.3 40.3 49.0 46.9 Aimag center 49.1 2.0 48.9 100.0 19.0 28.2 20.6 19.9 Soum center 47.1 1.9 51.0 100.0 16.3 24.3 19.2 17.8 Countryside 65.0 0.7 34.4 100.0 19.5 7.2 11.2 15.4 Western 51.1 1.9 46.9 100.0 13.0 17.9 13.0 13.1 Khangai 55.1 1.2 43.7 100.0 19.6 14.8 16.9 18.2 Central 49.3 1.9 48.9 100.0 14.3 19.6 15.4 14.9 Eastern 59.1 1.5 39.4 100.0 7.9 7.4 5.7 6.8 Consumption quintiles Poorest 42.4 2.6 55.0 100.0 14.9 33.3 21.0 18.1 II 48.8 1.9 49.3 100.0 18.4 26.5 20.2 19.3 III 50.8 1.1 48.1 100.0 20.0 15.8 20.6 20.2 IV 54.3 1.1 44.6 100.0 21.8 16.2 19.5 20.7 Wealthiest 59.0 0.5 40.5 100.0 24.9 8.3 18.6 21.7 Poverty Non-poor 53.9 1.0 45.1 100.0 78.8 53.7 71.8 75.1 Poor 43.8 2.6 53.6 100.0 21.2 46.4 28.3 24.9 Gender Male 58.4 2.0 39.7 100.0 53.2 64.5 39.4 46.8 Female 45.3 0.9 53.8 100.0 46.9 35.5 60.6 53.2 Age group 15-24 22.0 2.1 75.9 100.0 7.9 27.3 29.5 18.4 25-34 72.1 2.1 25.8 100.0 27.6 29.7 10.8 19.7 35-44 74.6 1.6 23.8 100.0 30.8 24.2 10.7 21.2 45-54 71.9 1.2 26.9 100.0 24.2 14.5 9.9 17.3 55-64 31.0 (*) 68.6 100.0 8.4 (*) 20.2 13.9 65+ 6.3 (*) 93.7 100.0 1.2 (*) 18.9 9.5 Educational attainment None 46.5 1.2 52.3 100.0 3.7 3.3 4.5 4.1 Primary 42.5 1.4 56.1 100.0 4.1 4.8 5.9 5.0 Lower 37.2 1.0 61.7 100.0 13.3 13.4 24.0 18.4 secondary Upper 45.5 1.5 53.0 100.0 25.4 31.0 32.1 28.6 secondary Vocational 51.6 1.8 46.7 100.0 15.7 19.8 15.5 15.6 University or 68.7 1.4 29.9 100.0 37.8 27.6 18.0 28.3 higher Note: Estimated for 15 and older aged population (*) - sample size is less than 29 Source: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 87 ANNEX Table B. 41 Labor force participation rate and unemployment rate among population aged 15 and older by poverty status Labor force participation rate Unemployment rate Non-poor Poor Non-poor Poor National 54.9 46.5 1.8 5.7 Location Urban 53.6 40.6 2.0 7.0 Rural 58.0 54.1 1.5 4.3 Ulaanbaatar 53.4 40.0 1.8 5.6 Aimag center 54.0 41.6 2.5 9.7 Soum center 51.8 42.0 2.2 9.1 Countryside 66.1 64.9 0.7 1.6 Western 55.7 47.9 2.5 6.3 Khangai 57.5 53.5 1.4 3.6 Central 52.4 46.8 2.3 8.8 Eastern 64.6 52.2 1.2 6.0 Gender Male 62.0 55.2 2.3 6.4 Female 48.7 38.7 1.3 4.7 Age group 15-24 24.1 24.1 7.1 12.1 25-34 77.5 64.1 2.1 5.8 35-44 79.9 66.1 1.3 4.7 45-54 76.7 61.7 1.0 4.3 55-64 32.7 25.8 1.1 2.3 65+ 6.7 4.5 0.0 5.2 Educational attainment None 47.4 47.9 1.4 3.4 Primary 41.8 46.5 1.6 4.8 Lower secondary 37.7 39.3 1.3 5.0 Upper secondary 48.0 44.8 2.4 5.5 Vocational 53.0 54.6 2.1 7.6 University or higher 70.8 60.7 1.6 7.1 Note: Estimated for 15 and older aged population Source: HSES 2022. 88 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX Table B. 42 Labor force participation rate and unemployment rate among population aged 15 and older by gender Labor force participation rate Unemployment rate Male Female Male Female National 60.3 46.2 3.2 2.0 Location Urban 59.2 43.9 3.5 2.1 Rural 62.4 51.2 2.7 1.9 Ulaanbaatar 59.7 43.3 3.1 1.6 Aimag center 57.9 45.3 4.5 3.4 Soum center 54.3 44.3 4.9 2.9 Countryside 71.1 59.9 1.0 1.0 Western 59.6 46.9 3.6 3.6 Khangai 62.0 51.1 2.4 1.6 Central 56.9 45.9 4.5 2.7 Eastern 68.2 53.8 2.9 2.1 Poverty Non-poor 62.0 48.7 2.3 1.3 Poor 55.2 38.7 6.4 4.7 Age group 15-24 28.9 19.1 8.5 9.0 25-34 85.3 63.6 3.4 2.2 35-44 82.7 70.4 2.5 1.7 45-54 75.3 71.2 2.3 1.0 55-64 42.6 22.7 1.8 0.5 65+ 8.7 4.9 1.4 0.0 Educational attainment None 57.1 35.6 2.3 2.6 Primary 57.9 29.5 3.3 2.6 Lower secondary 45.0 30.3 2.8 2.5 Upper secondary 55.6 39.3 4.1 2.1 Vocational 65.2 42.4 4.0 2.5 University or higher 78.0 65.1 2.3 1.7 Note: Estimated for 15 and older aged population Source: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 89 ANNEX Table B. 43 Distribution of workers aged 15 and older by poverty status, urban and rural area, employment industry, sector, and occupation (% of workers) Urban Rural National Non- Non- Non- Poor Total Poor Total Poor Total poor poor poor Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Industry Agriculture 2.5 6.8 3.2 50.6 68.5 56.0 17.7 38.5 22.1 Industry 29.2 37.4 30.6 11.4 9.1 10.7 23.6 22.8 23.4 Services 68.3 55.9 66.3 38.1 22.4 33.3 58.8 38.7 54.5 Agriculture, herding 2.5 6.8 3.2 50.6 68.5 56.0 17.7 38.5 22.1 Mining 7.9 5.5 7.5 5.2 2.8 4.5 7.0 4.1 6.4 Manufacturing 9.3 12.9 9.8 2.9 2.5 2.8 7.2 7.6 7.3 Electricity, water 3.5 4.1 3.6 1.6 1.1 1.4 2.9 2.6 2.8 Construction 8.7 14.9 9.7 1.7 2.6 2.0 6.5 8.6 6.9 Trade 16.6 14.4 16.2 5.3 2.1 4.3 13.0 8.1 12.0 Hotels, restaurants, tourism 3.5 5.6 3.8 1.0 1.6 1.2 2.7 3.5 2.9 Transportation 7.2 4.6 6.8 2.6 1.4 2.2 5.8 3.0 5.2 Financial, insurance, real estate 3.4 (*) 2.9 1.5 (*) 1.3 2.8 0.6 2.3 Public administration 10.0 8.2 9.7 7.3 3.8 6.2 9.1 6.0 8.5 Education 10.9 8.6 10.5 12.3 6.9 10.6 11.3 7.7 10.6 Health 5.8 3.8 5.5 4.3 2.3 3.7 5.3 3.0 4.8 Other 10.9 10.1 10.8 3.8 3.7 3.8 8.7 6.8 8.3 Sector Private 67.0 72.8 67.9 71.1 84.1 75.1 68.3 78.6 70.5 Public 24.1 20.0 23.4 24.4 13.5 21.1 24.2 16.7 22.6 State-owned enterprise 8.9 7.2 8.7 4.5 2.5 3.9 7.5 4.8 7.0 Occupation Managers, senior officials and 10.7 (*) 9.2 4.6 (*) 3.4 8.8 0.8 7.1 legislators Professionals 25.5 7.1 22.5 14.7 5.5 11.9 22.1 6.3 18.7 Technicians and associate 4.2 1.6 3.8 2.4 0.8 1.9 3.6 1.2 3.1 professionals Clerks 5.0 3.4 4.7 2.8 0.8 2.2 4.3 2.1 3.8 Service workers, shop and market 19.4 20.8 19.6 8.1 5.8 7.4 15.8 13.1 15.3 salespeople Skilled agricultural and fishery workers 2.1 6.6 2.9 48.7 65.9 54.0 16.9 37.0 21.1 Craft and related trader workers 11.9 20.7 13.4 5.1 5.4 5.2 9.8 12.8 10.4 Plant and machine operators 11.7 10.0 11.5 5.8 3.1 5.0 9.9 6.5 9.2 Elementary occupations 8.4 27.9 11.5 7.3 11.7 8.6 8.0 19.6 10.5 Others 1.0 (*) 1.0 0.5 (*) 0.5 0.8 0.7 0.8 (*) - sample size is less than 29 Source: HSES 2022. 90 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX Table B. 44 Poverty status among workers aged 15 and older by urban and rural area, employment industry, sector, and occupation (% of total) Urban Rural National Non- Non- Non- Poor Total Poor Total Poor Total poor poor poor Total employed population 83.9 16.1 100.0 69.5 30.5 100.0 78.8 21.2 100.0 Industry Agriculture 65.5 34.5 100.0 62.7 37.3 100.0 63.0 37.0 100.0 Industry 80.3 19.7 100.0 74.1 25.9 100.0 79.3 20.7 100.0 Services 86.4 13.6 100.0 79.5 20.5 100.0 84.9 15.1 100.0 Agriculture, herding 65.5 34.5 100.0 62.7 37.3 100.0 63.0 37.0 100.0 Mining 88.2 11.8 100.0 80.9 19.1 100.0 86.3 13.7 100.0 Manufacturing 78.9 21.1 100.0 72.3 27.7 100.0 78.0 22.0 100.0 Electricity, water 81.8 18.2 100.0 76.0 24.0 100.0 80.7 19.3 100.0 Construction 75.1 24.9 100.0 59.7 40.3 100.0 73.6 26.4 100.0 Trade 85.7 14.3 100.0 85.2 14.8 100.0 85.7 14.3 100.0 Hotels, restaurants, tourism 76.7 23.3 100.0 59.5 40.5 100.0 74.1 25.9 100.0 Transportation 89.1 10.9 100.0 80.9 19.1 100.0 87.9 12.1 100.0 Financial, insurance, real estate 96.7 (*) 100.0 84.4 (*) 100.0 94.4 5.6 100.0 Public administration 86.3 13.7 100.0 81.5 18.6 100.0 85.0 15.0 100.0 Education 86.9 13.1 100.0 80.2 19.8 100.0 84.5 15.5 100.0 Health 88.8 11.2 100.0 81.0 19.0 100.0 86.7 13.3 100.0 Other 84.9 15.1 100.0 70.4 29.6 100.0 82.6 17.4 100.0 Sector Private 82.8 17.3 100.0 65.9 34.1 100.0 76.3 23.7 100.0 Public 86.2 13.8 100.0 80.6 19.5 100.0 84.3 15.7 100.0 State-owned enterprise 86.7 13.3 100.0 80.6 19.5 100.0 85.4 14.6 100.0 Occupation Managers, senior officials and 98.2 (*) 100.0 94.8 (*) 100.0 97.6 2.4 100.0 legislators Professionals 94.9 5.1 100.0 86.0 14.1 100.0 92.9 7.1 100.0 Technicians and associate 93.2 6.9 100.0 86.9 13.1 100.0 91.8 8.2 100.0 professionals Clerks 88.4 11.6 100.0 88.7 11.3 100.0 88.4 11.6 100.0 Service workers, shop and market 83.0 17.0 100.0 76.0 24.0 100.0 81.8 18.2 100.0 salespeople Skilled agricultural and fishery workers 63.0 37.1 100.0 62.8 37.2 100.0 62.8 37.2 100.0 Craft and related trader workers 75.0 25.0 100.0 68.4 31.6 100.0 73.9 26.1 100.0 Plant and machine operators 86.0 14.0 100.0 81.0 19.0 100.0 85.0 15.0 100.0 Elementary occupations 61.0 39.0 100.0 58.9 41.1 100.0 60.4 39.6 100.0 Others 84.9 (*) 100.0 72.2 (*) 100.0 82.2 17.8 100.0 (*) - sample size is less than 29 Source: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 91 ANNEX Table B. 45 Distribution of workers aged 15 and older by gender, urban and rural area, employment industry, sector, and occupation (% of workers) Urban Rural National Male Female Total Male Female Total Male Female Total Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Industry Agriculture 3.7 2.5 3.2 61.4 49.8 56.0 24.6 19.2 22.1 Industry 41.5 18.3 30.6 14.8 5.9 10.7 31.8 13.9 23.4 Services 54.8 79.2 66.3 23.8 44.4 33.3 43.6 66.9 54.5 Agriculture, herding 3.7 2.5 3.2 61.4 49.8 56.0 24.6 19.2 22.1 Mining 11.7 2.8 7.5 6.8 1.9 4.5 9.9 2.5 6.4 Manufacturing 10.1 9.5 9.8 2.8 2.8 2.8 7.5 7.2 7.3 Electricity, water 4.5 2.5 3.6 2.1 0.7 1.4 3.6 1.9 2.8 Construction 15.2 3.5 9.7 3.2 0.5 2.0 10.8 2.4 6.9 Trade 13.2 19.6 16.2 3.0 5.8 4.3 9.5 14.7 12.0 Hotels, restaurants, tourism 2.0 5.9 3.8 0.5 2.0 1.2 1.5 4.5 2.9 Transportation 10.4 2.8 6.8 3.3 1.0 2.2 7.8 2.1 5.2 Financial, insurance, real estate 2.1 3.9 2.9 0.6 2.0 1.3 1.5 3.2 2.3 Public administration 9.8 9.6 9.7 6.6 5.9 6.2 8.6 8.3 8.5 Education 4.8 17.0 10.5 4.5 17.8 10.6 4.7 17.3 10.6 Health 2.0 9.4 5.5 1.4 6.3 3.7 1.8 8.3 4.8 Other 10.6 11.0 10.8 3.9 3.6 3.8 8.2 8.4 8.3 Sector Private 73.0 62.3 67.9 82.1 66.9 75.1 76.3 63.9 70.5 Public 16.8 30.8 23.4 13.7 29.7 21.1 15.7 30.4 22.6 State-owned enterprise 10.2 6.9 8.7 4.3 3.4 3.9 8.0 5.7 7.0 Occupation Managers, senior officials and 9.6 8.7 9.2 3.3 3.5 3.4 7.3 6.9 7.1 legislators Professionals 15.7 30.1 22.5 5.4 19.4 11.9 12.0 26.3 18.7 Technicians and associate 3.1 4.5 3.8 1.6 2.2 1.9 2.6 3.7 3.1 professionals Clerks 2.1 7.7 4.7 1.2 3.3 2.2 1.8 6.2 3.8 Service workers, shop and market 13.4 26.7 19.6 4.1 11.2 7.4 10.0 21.2 15.3 salespeople Skilled agricultural and fishery 3.2 2.5 2.9 58.5 48.7 54.0 23.2 18.8 21.1 workers Craft and related trader workers 20.1 5.8 13.4 7.4 2.6 5.2 15.5 4.7 10.4 Plant and machine operators 20.3 1.5 11.5 8.9 0.5 5.0 16.2 1.2 9.2 Elementary occupations 10.9 12.1 11.5 8.8 8.5 8.6 10.2 10.8 10.5 Others 1.6 (*) 1.0 0.7 (*) 0.5 1.3 (*) 0.8 (*) - sample size is less than 29 Source: HSES 2022. 92 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX Table B. 46 Gender among workers aged 15 and older by urban and rural area, employment industry, sector, and occupation (% of total) Urban Rural National Male Female Total Male Female Total Male Female Total Total employed population 52.8 47.2 100.0 53.7 46.3 100.0 53.2 46.9 100.0 Industry Agriculture 62.2 37.8 100.0 58.9 41.1 100.0 59.2 40.8 100.0 Industry 71.7 28.3 100.0 74.5 25.5 100.0 72.2 27.8 100.0 Services 43.7 56.3 100.0 38.4 61.6 100.0 42.5 57.5 100.0 Agriculture, herding 62.2 37.8 100.0 58.9 41.1 100.0 59.2 40.8 100.0 Mining 82.5 17.5 100.0 80.8 19.2 100.0 82.1 17.9 100.0 Manufacturing 54.3 45.7 100.0 53.1 46.9 100.0 54.1 45.9 100.0 Electricity, water 66.9 33.1 100.0 77.2 22.8 100.0 68.7 31.3 100.0 Construction 83.0 17.0 100.0 88.3 11.7 100.0 83.5 16.5 100.0 Trade 43.1 56.9 100.0 37.4 62.6 100.0 42.4 57.6 100.0 Hotels, restaurants, tourism 27.8 72.2 100.0 23.1 77.0 100.0 27.1 72.9 100.0 Transportation 80.8 19.2 100.0 79.4 20.7 100.0 80.6 19.4 100.0 Financial, insurance, real estate 36.8 63.2 100.0 27.5 72.6 100.0 35.0 65.0 100.0 Public administration 53.4 46.6 100.0 56.3 43.7 100.0 54.2 45.9 100.0 Education 23.9 76.1 100.0 22.5 77.5 100.0 23.4 76.6 100.0 Health 18.9 81.1 100.0 20.7 79.3 100.0 19.4 80.6 100.0 Other 51.9 48.1 100.0 56.3 43.7 100.0 52.6 47.4 100.0 Sector Private 56.8 43.2 100.0 58.8 41.3 100.0 57.5 42.5 100.0 Public 38.0 62.0 100.0 34.8 65.2 100.0 36.9 63.1 100.0 State-owned enterprise 62.2 37.8 100.0 58.9 41.1 100.0 61.5 38.5 100.0 Occupation Managers, senior officials and 55.1 44.9 100.0 52.9 47.1 100.0 54.7 45.3 100.0 legislators Professionals 36.9 63.1 100.0 24.5 75.5 100.0 34.1 65.9 100.0 Technicians and associate 43.8 56.2 100.0 45.3 54.7 100.0 44.1 55.9 100.0 professionals Clerks 23.4 76.7 100.0 30.3 69.7 100.0 24.8 75.2 100.0 Service workers, shop and market 36.0 64.0 100.0 30.0 70.0 100.0 35.0 65.0 100.0 salespeople Skilled agricultural and fishery 59.4 40.6 100.0 58.2 41.8 100.0 58.3 41.7 100.0 workers Craft and related trader workers 79.4 20.6 100.0 76.5 23.6 100.0 78.9 21.2 100.0 Plant and machine operators 93.7 6.3 100.0 95.8 4.3 100.0 94.1 5.9 100.0 Elementary occupations 50.3 49.8 100.0 54.5 45.5 100.0 51.5 48.5 100.0 Others 85.3 (*) 100.0 81.1 (*) 100.0 84.4 (*) 100.0 (*) - sample size is less than 29 Source: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 93 ANNEX Table B. 47 Average Loan amount in last 12 months by loan type (thousand tugrug) Average Average loan amount by type of loan* total loan amount Salary Pension Mortgage Herder Business Automobile Other National 10 555 9 182 3 679 53 198 8 404 29 628 17 282 5 735 Location Urban 12 267 9 812 3 804 56 906 9 681 33 882 17 396 5 786 Rural 8 231 7 762 3 515 20 274 8 268 21 166 15 751 5 557 Ulaanbaatar 13 180 10 451 3 752 69 222 (*) 40 536 17 550 5 585 Aimag center 11 031 9 054 3 863 38 861 10 202 29 357 16 698 6 197 Soum center 7 963 7 714 3 488 (*) 7 121 22 360 17 795 5 451 Countryside 8 554 8 075 3 583 (*) 8 697 (*) (*) 5 796 Western 9 003 7 400 3 857 25 736 6 890 25 053 (*) 5 773 Khangai 9 313 9 416 3 616 43 160 7 445 26 367 14 885 6 712 Central 9 191 8 289 3 664 (*) 10 058 24 131 16 539 5 718 Eastern 9 591 8 031 3 434 (*) 11 054 28 773 13 347 4 545 Consumption quintiles Poorest 4 772 5 053 3 136 (*) 6 225 (*) (*) 2 753 II 6 687 6 192 3 384 (*) 7 367 13 347 13 481 3 910 III 8 468 7 849 3 335 35 714 8 642 15 518 12 573 5 687 IV 11 142 9 363 3 968 49 603 9 675 27 530 16 119 6 030 Wealthiest 19 182 12 465 4 823 71 460 12 973 42 712 22 877 8 693 Poverty Non-poor 12 018 9 746 3 851 55 984 9 223 31 454 18 088 6 500 Poor 5 235 5 391 3 183 (*) 6 539 8 590 10 675 2 863 *- Estimated only households with particular loan. (*) - sample size is less than 29 Source: HSES 2022. 94 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX Table B. 48 Purposes of paid loans in last 12 months Sending Running Purchase Building and Household Purchase Purchase to other a private of durable buying an Other consumption of a car of land household business goods accommodation members National 69.0 15.3 6.0 0.6 7.7 16.7 0.9 10.5 Location Urban 63.7 17.6 6.7 0.6 10.1 21.7 1.0 9.6 Rural 78.6 11.2 4.8 0.6 3.3 7.7 0.7 12.0 Ulaanbaatar 59.3 20.5 5.6 (*) 12.1 23.2 (*) 8.2 Aimag center 71.6 12.5 8.8 0.6 6.6 18.9 0.8 12.1 Soum center 79.2 10.0 6.8 (*) 3.2 8.5 (*) 11.7 Countryside 77.8 12.7 2.0 (*) 3.5 6.5 (*) 12.4 Western 77.4 9.3 8.8 (*) 3.2 10.2 (*) 18.3 Khangai 78.8 11.1 6.0 (*) 3.5 12.3 (*) 9.7 Central 73.4 12.0 5.3 (*) 5.7 12.2 (*) 11.1 Eastern 71.5 15.8 5.8 (*) 7.2 14.3 (*) 10.2 Consumption quintiles Poorest 83.4 6.3 1.7 (*) 7.1 4.8 (*) 9.7 II 76.9 12.4 3.4 (*) 6.4 8.8 (*) 10.6 III 74.0 15.4 5.5 (*) 6.8 12.0 (*) 10.9 IV 65.6 17.9 7.0 (*) 8.7 21.6 (*) 10.7 Wealthiest 52.6 20.9 10.5 (*) 9.0 29.9 1.1 10.3 Poverty Non-poor 65.4 17.4 7.1 0.5 7.9 19.8 1.0 10.7 Poor 82.0 7.9 2.2 (*) 7.1 5.5 (*) 9.7 Note: Note: include households who repayed loans in the last 12 months. The HSES asked households to select up to 3 purposes of loan usage so that the sum of percentage shares can exceed 100. (*) - sample size is less than 29 Source: HSES 2022. Table B. 49 Durable goods ownership at household Electric Truck, Smart Washing Computer Refrigerator generator Television Motorcycle large Car phone machine set truck National 16.6 91.5 90.2 80.9 13.2 95.3 14.6 10.7 48.7 Location Urban 21.9 95.4 96.5 89.7 1.1 97.2 2.2 4.6 51.6 Rural 6.3 83.8 77.8 63.8 36.8 91.6 38.8 22.7 43.1 Ulaanbaatar 25.1 96.4 97.6 91.2 (*) 97.9 1.0 3.6 53.2 Aimag center 14.7 93.2 94.2 86.3 2.3 95.7 4.9 6.8 48.2 Soum center 9.4 87.1 89.1 81.6 6.4 92.6 20.2 13.9 44.0 Countryside 2.5 79.6 63.5 41.5 75.0 90.3 62.2 33.7 41.8 Western 10.0 88.6 80.3 65.6 28.7 92.0 32.3 17.1 45.1 Khangai 9.3 86.0 81.8 69.7 26.4 93.6 28.8 15.5 43.3 Central 9.0 88.1 89.2 80.4 16.8 93.8 18.9 16.3 47.5 Eastern 10.3 87.0 83.3 71.4 25.1 92.1 25.4 20.3 43.4 Poverty Non-poor 20.7 93.4 93.2 85.2 11.2 96.6 12.8 10.9 56.5 Poor 2.6 84.9 79.6 66.0 19.8 90.8 20.8 10.1 21.9 (*) - sample size is less than 29 Source: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 95 ANNEX ANNEX C. STANDARD ERRORS AND CONFIDENCE INTERVALS OF POVERTY ESTIMATESS Table C. 1 Poverty indicators by urban and rural areas [ 95% confidence interval] Estimation Standard error Obs. Lower Upper Poverty headcount National 27.1 0.6 25.9 28.4 22 995 Urban 23.0 0.9 21.2 24.7 12 265 Rural 35.5 0.8 34.0 37.0 10 730 Poverty gap National 6.5 0.2 6.1 6.9 22 995 Urban 5.8 0.3 5.2 6.4 12 265 Rural 7.9 0.2 7.5 8.4 10 730 Poverty severity National 2.3 0.1 2.1 2.5 22 995 Urban 2.1 0.1 1.9 2.4 12 265 Rural 2.6 0.1 2.4 2.8 10 730 Notes: Standard errors and confidence intervals were calculated taking into account the survey design i.e. stratification, primary sampling units and population weights. Sources: HSES 2022. 96 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX Table C. 2 Poverty indicators by location [ 95% confidence interval] Estimation Standard error Obs. Lower Upper Poverty headcount Ulaanbaatar 21.6 1.2 19.3 24.0 4 677 Aimag center 26.1 1.0 24.2 28.0 7 588 Soum center 30.6 0.9 28.8 32.4 5 927 Countryside 41.2 1.1 39.0 43.3 4 803 Poverty gap Ulaanbaatar 5.6 0.4 4.9 6.4 4 677 Aimag center 6.1 0.3 5.5 6.7 7 588 Soum center 7.0 0.3 6.4 7.5 5 927 Countryside 9.0 0.3 8.3 9.6 4 803 Poverty severity Ulaanbaatar 2.1 0.2 1.8 2.5 4 677 Aimag center 2.1 0.1 1.8 2.3 7 588 Soum center 2.4 0.1 2.1 2.6 5 927 Countryside 2.9 0.1 2.6 3.2 4 803 Notes: Poverty measures were calculated taking into account the survey design i.e. strata, primary sampling units and population weights. Sources: HSES 2022. Table C. 3 Poverty indicators by region [ 95% confidence interval] Estimation Standard error Obs. Lower Upper Poverty headcount Western 36.5 1.2 34.2 38.8 4 616 Khangai 33.4 1.1 31.3 35.6 5 816 Central 24.6 1.0 22.6 26.6 5 174 Eastern 35.3 1.5 32.3 38.3 2 712 Ulaanbaatar 21.6 1.2 19.3 24.0 4 677 Poverty gap Western 7.9 0.3 7.3 8.6 4 616 Khangai 7.8 0.3 7.1 8.4 5 816 Central 5.2 0.3 4.6 5.7 5 174 Eastern 8.8 0.5 7.7 9.9 2 712 Ulaanbaatar 5.6 0.4 4.9 6.4 4 677 Poverty severity Western 2.6 0.1 2.3 2.8 4 616 Khangai 2.6 0.1 2.3 2.9 5 816 Central 1.7 0.1 1.4 1.9 5 174 Eastern 3.2 0.3 2.6 3.7 2 712 Ulaanbaatar 2.1 0.2 1.8 2.5 4 677 Notes: Poverty measures were calculated taking into account the survey design i.e. strata, primary sampling units and population weights. Sources: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 97 ANNEX Table C. 4 Poverty indicators by quarter [ 95% confidence interval] Estimation Standard error Obs. Lower Upper Poverty headcount           Jan - Mar 25.9 1.2 23.4 28.3 5 924 Apr - Jun 27.7 1.4 25.1 30.4 5 739 Jul - Sep 27.0 1.3 24.4 29.6 5 691 Oct - Dec 28.0 1.3 25.4 30.6 5 641 Poverty gap   Jan - Mar 6.1 0.4 5.3 6.8 5 924 Apr - Jun 6.6 0.4 5.8 7.4 5 739 Jul - Sep 6.5 0.4 5.7 7.4 5 691 Oct - Dec 6.7 0.5 5.8 7.7 5 641 Poverty severity   Jan - Mar 2.1 0.2 1.8 2.5 5 924 Apr - Jun 2.3 0.2 2.0 2.7 5 739 Jul - Sep 2.3 0.2 1.9 2.7 5 691 Oct - Dec 2.5 0.2 2.0 2.9 5 641 Notes: Poverty measures were calculated taking into account the survey design i.e. strata, primary sampling units and population weights. Sources: HSES 2022. Table C. 5 Poverty indicators by household head’s age group [ 95% confidence interval] Estimation Standard error Obs. Lower Upper Poverty headcount <30 27.1 1.5 24.2 30.0 1 772 30-39 26.4 0.9 24.6 28.2 5 394 40-49 29.8 1.0 27.9 31.7 5 458 50-59 26.9 1.1 24.8 29.0 4 940 60+ 24.0 1.0 21.9 26.0 5 431 Poverty gap <30 6.6 0.4 5.7 7.4 1 772 30-39 5.9 0.3 5.4 6.4 5 394 40-49 7.4 0.3 6.8 8.1 5 458 50-59 6.7 0.4 6.0 7.5 4 940 60+ 5.6 0.3 4.9 6.2 5 431 Poverty severity <30 2.3 0.2 1.9 2.7 1 772 30-39 1.9 0.1 1.7 2.1 5 394 40-49 2.7 0.2 2.4 3.1 5 458 50-59 2.5 0.2 2.1 2.9 4 940 60+ 1.9 0.2 1.6 2.3 5 431 Notes: Poverty measures were calculated taking into account the survey design i.e. strata, primary sampling units and population weights. Sources: HSES 2022. 98 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX Table C. 6 Poverty indicators by gender of the household head [ 95% confidence interval] Estimation Standard error Obs. Lower Upper National Poverty headcount Male 26.1 0.7 24.8 27.4 17 272 Female 31.3 1.1 29.1 33.6 5 723 Poverty gap Male 6.0 0.2 5.6 6.5 17 272 Female 8.3 0.4 7.5 9.2 5 723 Poverty severity Male 2.1 0.1 1.9 2.3 17 272 Female 3.1 0.2 2.7 3.6 5 723 Urban, rural Poverty headcount Urban: Male 21.3 0.9 19.5 23.1 8 728 Rural: Male 34.9 0.8 33.3 36.5 8 544 Urban:Female 28.8 1.4 26.1 31.6 3 537 Rural: Female 39.6 1.5 36.6 42.6 2 186 Poverty gap Urban: Male 5.2 0.3 4.6 5.8 8 728 Rural: Male 7.6 0.2 7.2 8.1 8 544 Urban: Female 7.9 0.5 6.8 8.9 3 537 Rural: Female 9.8 0.5 8.8 10.9 2 186 Poverty severity Urban: Male 1.9 0.1 1.6 2.1 8 728 Rural: Male 2.5 0.1 2.3 2.7 8 544 Urban: Female 3.0 0.3 2.5 3.6 3 537 Rural: Female 3.5 0.3 3.0 4.0 2 186 Notes: Poverty measures were calculated taking into account the survey design i.e. strata, primary sampling units and population weights. Sources: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 99 ANNEX Table C. 7 Poverty indicators by household head’s education attainment level [ 95% confidence interval] Estimation Standard error Obs. Lower Upper Poverty headcount None 56.1 1.6 53.0 59.2 1 640 Primary 48.4 1.5 45.5 51.4 2 097 Lower secondary 40.9 1.0 38.8 42.9 4 514 Higher secondary 32.6 1.2 30.3 34.9 5 812 Vocational 21.7 1.1 19.5 23.8 3 847 University or higher 6.3 0.5 5.3 7.2 5 085 Poverty gap None 13.6 0.5 12.6 14.6 1 640 Primary 11.4 0.5 10.3 12.4 2 097 Lower secondary 10.0 0.4 9.3 10.8 4 514 Higher secondary 8.2 0.5 7.4 9.1 5 812 Vocational 4.9 0.3 4.2 5.6 3 847 University or higher 1.1 0.1 0.9 1.3 5 085 Poverty severity None 4.6 0.2 4.2 5.1 1 640 Primary 3.9 0.3 3.4 4.4 2 097 Lower secondary 3.5 0.2 3.2 3.9 4 514 Higher secondary 3.1 0.2 2.6 3.6 5 812 Vocational 1.6 0.1 1.3 1.9 3 847 University or higher 0.3 0.0 0.2 0.4 5 085 Notes: Poverty measures were calculated taking into account the survey design i.e. strata, primary sampling units and population weights. Sources: HSES 2022. 100 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX Table C. 8 Poverty indicators by possession of savings [ 95% confidence interval] Estimation Standard error Obs. Lower Upper National Poverty headcount without saving 31.6 0.7 30.2 33.0 15 736 with saving 20.0 0.9 18.3 21.7 7 259 Poverty gap without saving 7.7 0.3 7.2 8.2 15 736 with saving 4.5 0.3 4.0 5.0 7 259 Poverty severity without saving 2.8 0.1 2.5 3.0 15 736 with saving 1.5 0.1 1.3 1.8 7 259 Urban, rural Poverty headcount Urban: without saving 28.1 1.0 26.1 30.1 8 200 Rural: without saving 38.1 0.9 36.3 39.8 7 536 Urban: with saving 15.5 1.1 13.3 17.7 4 065 Rural: with saving 30.7 1.2 28.5 33.0 3 194 Poverty gap Urban: without saving 7.2 0.4 6.5 7.9 8 200 Rural: without saving 8.6 0.3 8.1 9.2 7 536 Urban: with saving 3.7 0.3 3.0 4.3 4 065 Rural: with saving 6.6 0.3 5.9 7.3 3 194 Poverty severity Urban: without saving 2.7 0.2 2.3 3.0 8 200 Rural: without saving 2.9 0.1 2.6 3.1 7 536 Urban: with saving 1.3 0.2 1.0 1.6 4 065 Rural: with saving 2.1 0.1 1.8 2.4 3 194 Notes: Poverty measures were calculated taking into account the survey design i.e. strata, primary sampling units and population weights. Sources: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 101 ANNEX Table C. 9 Poverty indicators by loan status [ 95% confidence interval] Estimation Standard error Obs. Lower Upper National Poverty headcount without any loan 29.8 0.9 28.1 31.5 9 681 with loan 25.4 0.7 24.0 26.8 13 314 Poverty gap without any loan 7.5 0.3 6.9 8.1 9 681 with loan 5.8 0.2 5.4 6.3 13 314 Poverty severity without any loan 2.7 0.1 2.4 3.0 9 681 with loan 2.0 0.1 1.8 2.2 13 314 Urban, rural Poverty headcount Urban: without any loan 25.3 1.2 23.0 27.5 5 260 Rural: without any loan 39.9 1.1 37.7 42.1 4 421 Urban: with loan 21.4 1.0 19.5 23.4 7 005 Rural: with loan 33.0 0.9 31.2 34.8 6 309 Poverty gap Urban: without any loan 6.6 0.4 5.8 7.4 5 260 Rural: without any loan 9.6 0.4 8.9 10.3 4 421 Urban: with loan 5.2 0.3 4.6 5.8 7 005 Rural: with loan 7.0 0.3 6.5 7.5 6 309 Poverty severity Urban: without any loan 2.5 0.2 2.1 2.9 5 260 Rural: without any loan 3.3 0.2 3.0 3.6 4 421 Urban: with loan 1.9 0.1 1.6 2.2 7 005 Rural: with loan 2.2 0.1 2.0 2.4 6 309 Notes: Poverty measures were calculated taking into account the survey design i.e. strata, primary sampling units and population weights. Sources: HSES 2022. 102 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX Table C. 10 Poverty indicators by type of dwelling [ 95% confidence interval] Estimation Standard error Obs. Lower Upper National Poverty headcount Ger 51.9 0.8 50.2 53.5 9 783 Apartment 2.6 0.4 1.9 3.4 4 913 House 24.2 0.9 22.5 25.9 7 925 Other 42.5 5.3 32.1 52.8 374 Poverty gap Ger 13.7 0.4 13.0 14.5 9 783 Apartment 0.4 0.1 0.2 0.5 4 913 House 4.7 0.2 4.3 5.2 7 925 Other 10.4 1.6 7.3 13.4 374 Poverty severity Ger 5.1 0.2 4.7 5.6 9 783 Apartment 0.1 0.0 0.0 0.1 4 913 House 1.4 0.1 1.2 1.6 7 925 Other 3.6 0.7 2.3 4.9 374 Urban, rural Poverty headcount Urban: Ger 59.7 1.4 56.9 62.5 3 376 Rural: Ger 45.8 1.0 43.9 47.7 6 407 Urban: Apartment 2.5 0.4 1.8 3.2 4 355 Rural: Apartment 5.7 1.4 2.8 8.5 558 Urban: House 24.6 1.2 22.3 27.0 4 337 Rural: House 23.4 1.1 21.2 25.6 3 588 Urban: Other 51.0 7.1 37.0 65.0 197 Rural: Other 27.4 4.0 19.5 35.2 177 Poverty gap Urban: Ger 17.6 0.7 16.1 19.0 3 376 Rural: Ger 10.8 0.3 10.2 11.4 6 407 Urban: Apartment 0.3 0.1 0.2 0.5 4 355 Rural: Apartment 0.6 0.2 0.2 1.1 558 Urban: House 4.9 0.3 4.3 5.6 4 337 Rural: House 4.4 0.3 3.9 4.9 3 588 Urban: Other 12.6 2.1 8.5 16.8 197 Rural: Other 6.3 1.4 3.6 9.1 177 Poverty severity Urban: Ger 7.0 0.4 6.2 7.9 3 376 Rural: Ger 3.7 0.1 3.4 4.0 6 407 Urban: Apartment 0.1 0.0 0.0 0.1 4 355 Rural: Apartment 0.1 0.1 0.0 0.2 558 Urban: House 1.5 0.1 1.3 1.7 4 337 Rural: House 1.3 0.1 1.1 1.5 3 588 Urban: Other 4.5 0.9 2.6 6.3 197 Rural: Other 2.2 0.6 1.0 3.4 177 Notes: Poverty measures were calculated taking into account the survey design i.e. strata, primary sampling units and population weights. Sources: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 103 ANNEX Table C. 11 Poverty indicators by access to improved water sources [ 95% confidence interval] Estimation Standard error Obs. Lower Upper National Poverty headcount No 41.0 1.4 38.3 43.7 3 174 Yes 25.5 0.7 24.2 26.9 19 821 Poverty gap No 9.0 0.4 8.2 9.8 3 174 Yes 6.2 0.2 5.8 6.6 19 821 Poverty severity No 2.9 0.2 2.5 3.2 3 174 Yes 2.2 0.1 2.0 2.4 19 821 Urban, rural Poverty headcount Urban: No 31.4 5.2 21.2 41.5 383 Rural: No 42.2 1.4 39.4 44.9 2 791 Urban: Yes 22.8 0.9 21.1 24.6 11 882 Rural: Yes 32.9 0.8 31.3 34.5 7 939 Poverty gap Urban: No 8.5 2.0 4.7 12.3 383 Rural: No 9.1 0.4 8.3 9.9 2 791 Urban: Yes 5.7 0.3 5.2 6.3 11 882 Rural: Yes 7.5 0.3 7.0 8.0 7 939 Poverty severity Urban: No 3.2 0.8 1.6 4.8 383 Rural: No 2.8 0.2 2.5 3.2 2 791 Urban: Yes 2.1 0.1 1.8 2.4 11 882 Rural: Yes 2.5 0.1 2.3 2.7 7 939 Notes: Poverty measures were calculated taking into account the survey design i.e. strata, primary sampling units and population weights. Sources: HSES 2022. 104 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX Table C. 12 Poverty indicators by access to improved sanitation [ 95% confidence interval] Estimation Standard error Obs. Lower Upper National Poverty headcount No 38.9 0.7 37.5 40.3 17 376 Yes 3.7 0.4 2.9 4.5 5 619 Poverty gap No 9.5 0.3 8.9 10.0 17 376 Yes 0.6 0.1 0.4 0.7 5 619 Poverty severity No 3.4 0.1 3.1 3.6 17 376 Yes 0.1 0.0 0.1 0.2 5 619 Urban, rural Poverty headcount Urban: No 40.3 1.1 38.1 42.6 7 336 Rural: No 37.2 0.8 35.7 38.7 10 040 Urban: Yes 3.4 0.4 2.6 4.2 4 929 Rural: Yes 7.9 1.4 5.2 10.6 690 Poverty gap Urban: No 10.4 0.4 9.6 11.3 7 336 Rural: No 8.3 0.2 7.9 8.8 10 040 Urban: Yes 0.5 0.1 0.4 0.7 4 929 Rural: Yes 0.9 0.2 0.5 1.4 690 Poverty severity Urban: No 3.9 0.2 3.4 4.3 7 336 Rural: No 2.8 0.1 2.5 3.0 10 040 Urban: Yes 0.1 0.0 0.1 0.2 4 929 Rural: Yes 0.2 0.1 0.1 0.3 690 Notes: Poverty measures were calculated taking into account the survey design i.e. strata, primary sampling units and population weights. Sources: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 105 ANNEX Table C. 13 Poverty indicators by access to electricity [ 95% confidence interval] Estimation Standard error Obs. Lower Upper National Poverty headcount No 72.7 8.2 56.5 88.8 31 Yes 27.1 0.6 25.8 28.4 22 964 Poverty gap No 20.6 4.8 11.1 30.1 31 Yes 6.5 0.2 6.1 6.9 22 964 Poverty severity No 8.8 2.8 3.4 14.3 31 Yes 2.3 0.1 2.1 2.5 22 964 Urban, rural Poverty headcount Urban: No 90.7 10.0 71.0 110.3 4 Rural: No 70.0 9.4 51.5 88.4 27 Urban: Yes 23.0 0.9 21.2 24.7 12 261 Rural: Yes 35.5 0.8 34.0 37.0 10 703 Poverty gap Urban: No 31.2 13.6 4.6 57.9 4 Rural: No 19.0 5.0 9.3 28.7 27 Urban: Yes 5.8 0.3 5.2 6.4 12 261 Rural: Yes 7.9 0.2 7.4 8.3 10 703 Poverty severity Urban: No 15.4 8.2 -0.7 31.5 4 Rural: No 7.9 2.8 2.4 13.3 27 Urban: Yes 2.1 0.1 1.9 2.4 12 261 Rural: Yes 2.6 0.1 2.4 2.8 10 703 Notes: Poverty measures were calculated taking into account the survey design i.e. strata, primary sampling units and population weights. Sources: HSES 2022. 106 Mongolia Poverty Update 2022: New Methods, New Insights ANNEX Table C. 14 Poverty indicators by access to improved water sources, improved sanitation and electricity [ 95% confidence interval] Estimation Standard error Obs. Lower Upper National Poverty headcount No 38.9 0.7 37.5 40.2 17 391 Yes 3.6 0.4 2.9 4.4 5 604 Poverty gap No 9.5 0.3 8.9 10.0 17 391 Yes 0.6 0.1 0.4 0.7 5 604 Poverty severity No 3.4 0.1 3.1 3.6 17 391 Yes 0.1 0.0 0.1 0.2 5 604 Urban, rural Poverty headcount Urban: No 40.3 1.1 38.1 42.6 7 345 Rural: No 37.2 0.8 35.7 38.7 10 046 Urban: Yes 3.4 0.4 2.6 4.2 4 920 Rural: Yes 7.5 1.3 4.9 10.2 684 Poverty gap Urban: No 10.4 0.4 9.6 11.3 7 345 Rural: No 8.3 0.2 7.9 8.8 10 046 Urban: Yes 0.5 0.1 0.4 0.7 4 920 Rural: Yes 0.9 0.2 0.5 1.3 684 Poverty severity Urban: No 3.9 0.2 3.4 4.3 7 345 Rural: No 2.8 0.1 2.5 3.0 10 046 Urban: Yes 0.1 0.0 0.1 0.2 4 920 Rural: Yes 0.2 0.1 0.1 0.3 684 Notes: Poverty measures were calculated taking into account the survey design i.e. strata, primary sampling units and population weights. Sources: HSES 2022. Mongolia Poverty Update 2022: New Methods, New Insights 107