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Poverty definitions

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  • Poverty Line
    Government-set income threshold varying by household size, below which families are classified as living in poverty.
  • Household Size
    Number of individuals in a family unit, affecting the income threshold for poverty classification.
  • Poverty Rate
    Percentage of the population living below the poverty threshold at a given time.
  • In-Kind Transfers
    Non-cash benefits such as food stamps or healthcare, excluded from official income calculations for poverty.
  • Recession
    Economic downturn periods marked by increased poverty rates and reduced overall income levels.
  • Discrimination
    Social bias contributing to higher poverty rates among certain racial or ethnic groups.
  • Family Composition
    Structure of a household, such as single female-headed families, influencing poverty likelihood.
  • Credit Constraint
    Limited access to loans for poor individuals due to perceived higher risk by financial institutions.
  • Human Capital
    Education and training acquired, determining productivity and future earning potential.
  • Poverty Trap
    Self-reinforcing conditions preventing individuals from escaping poverty, including limited resources and opportunities.
  • Minority
    Racial or ethnic group with higher probability of experiencing poverty compared to majority populations.
  • Single Female-Headed Family
    Household led by a woman without a spouse, statistically more likely to be in poverty.
  • Underfunded School
    Educational institution in poor neighborhoods with limited resources, leading to lower educational outcomes.
  • Cycle of Poverty
    Ongoing process where poor conditions perpetuate poverty across generations.
  • Cash Income
    Monetary earnings used in poverty calculations, excluding non-cash benefits.