Targeting the Poorest: An Assessment of the Proxy Means Test Methodology

The purpose of this study is to help AusAID staff, their counterparts in partner governments and others working in the field of social protection to better understand the strengths and weaknesses of a targeting methodology known as the proxy means test (PMT). As social protection practitioners search for effective ways to target poor people in developing countries, proxy means testing has become increasingly popular. The methodology estimates household income by associating indicators or ‘proxies’ with household expenditure or consumption. This study assesses its accuracy, objectivity, transparency and ease of implementation.