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Poverty definitions

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  • Poverty Line
    A government-set income threshold, varying by household size, below which families are classified as poor.
  • Poverty Rate
    The percentage of a population living with incomes below the established poverty threshold.
  • In-Kind Transfers
    Non-cash government benefits, such as food stamps or healthcare, excluded from official income calculations.
  • Household Size
    The number of individuals living together, which determines the income threshold for poverty classification.
  • Credit Constraint
    A barrier faced by low-income individuals who are denied loans due to perceived high risk by lenders.
  • Human Capital
    The education and training that enhance productivity and earning potential, often limited for the poor.
  • Poverty Trap
    A self-reinforcing cycle where poor conditions hinder escape from poverty, often due to limited resources.
  • Aggregate Demand
    The total demand for goods and services in an economy, influenced by income distribution and social welfare.
  • Economic Inequality
    The uneven distribution of income and resources across different groups within a society.
  • Family Composition
    The structure of a household, such as single-female-headed families, affecting poverty risk.
  • Labor Productivity
    The output produced per worker, often linked to education and training opportunities.
  • Social Welfare
    Government programs and policies aimed at improving the well-being of disadvantaged groups.
  • Recession
    A period of economic decline marked by reduced output and increased poverty rates.
  • Discrimination
    Unequal treatment based on race or other factors, contributing to higher poverty rates among certain groups.