Definition

Relative Poverty

Relative Poverty is a measure of poverty based on an individual or family’s relative income compared to the overall average level of income in the economy as a whole. Relative poverty thresholds change over time with growth in overall income levels. Distinct from absolute
measures of poverty, which are defined according to a specified level of real consumption.

Category: Economics
References
Share it:  Cite

More from this Section

  • Target financing rate
    Target financing rate is the European Central Bank’s target for the overnight cash rate, ...
  • Fully amortized loan
    Fully amortized loan is a credit market instrument that provides a borrower with an amount ...
  • Profitability ratio
    Profitability ratio measure of a firm’s financial performance that compares earnings ...
  • Adaptive expectations
    Adaptive expectations is the theory that behaviour changes because of what people expect ...
  • Monetary base
    Monetary base is the sum of the Fed’s monetary liabilities (currency in circulation ...