Relative Poverty

Overview

Relative poverty is a measure of income inequality that compares an individual's or family's income to the average income in their society. It focuses on the social and economic relations between people within a given community, rather than their absolute level of income. If a person cannot afford the same lifestyle, consumption patterns, or opportunities as the majority of the population around them, they may be considered relatively poor.

Key Themes

Social Comparison: Relative poverty emphasizes how people compare themselves to others in their society. This can influence perceptions of well-being and self-esteem, even if one's absolute income is sufficient for basic needs.

Significance

Understanding relative poverty is crucial for assessing overall societal well-being and promoting social cohesion. High levels of relative poverty can lead to increased social tensions, unrest, and a decreased sense of shared values and identity within a community. By recognizing the importance of relative poverty, individuals, organizations, and governments can better understand and address these complexities.

Related:

• Absolute Poverty