Relative poverty

Definition

Relative poverty measures the economic status of an individual or family in comparison to the living standards of the wider society they live in. It highlights disparities in income and access to resources necessary for a decent standard of living.

Related terms

Income Inequality:

The uneven distribution of income across various participants in an economy, leading to financial disparity among populations.

Social Stratification:

The classification of people into rankings based on factors like wealth, income, race, education, and power.

Poverty Line:

An official threshold set by the government which indicates the minimum income level required to meet basic living needs