Parity index

Definition

Location parity index: ratio of rural to urban values of a given indicator. Wealth parity index: ratio of poorest to richest quintile values of a given indicator.

Calculation method

LPI: Divide the rural value of an indicator by the urban value of the same indicator. WPI: Divide the poorest quintile value of an indicator by the richest quintile value of the same indicator.

Data required

LPI: Rural and urban values of the given indicator. WPI: Poorest quintile value and richest quintile value of the given indicator.

Interpretation

A LPI equal to 1 indicates parity between rural and urban. In general, a value less than 1 indicates disparity in favour of those living in urban areas and a value greater than 1 indicates disparity in favour of those living in rural areas. However, the interpretation is different for indicators that should ideally approach 0% (e.g. repetition rate, dropout rate, out-of-school rate, etc.). In these cases, an LPI of less than 1 indicates disparity in favour of those living in rural areas and a value greater than 1 indicates disparity in favour of those living in urban areas. A WPI equal to 1 indicates parity between the poorest and richest household quintiles. In general, a value less than 1 indicates disparity in favour of the richest households and a value greater than 1 indicates a disparity in favour of the poorest households. However, the interpretation is different for indicators that should ideally approach 0% (e.g. repetition rate, dropout rate, out-of-school rate, etc.). In these cases, a WPI of less than 1 indicates disparity in favour of the poorest households and a value greater than 1 indicates disparity in favour of the richest households.

Purpose

The location parity index (LPI) measures progress towards parity in education participation and/or learning opportunities available for children, adolescents or youth living in rural areas in relation to those living in urban areas. The wealth parity index (WPI) measures progress towards parity in education participation and/or learning opportunities available for children, adolescents or youth living in households in the poorest quintile in relation to those living in households in the richest quintile.