Definition
- Poverty
- Poverty is having a household income below a poverty line, the level of income a household needs for a basic standard of living in its society.
- Not to be confused with: Income inequality
- Income inequality is how unequally total income is shared among the groups in a society, such as the top and bottom fifths of households.
Test yourself
What is the difference between poverty and income inequality?
Poverty counts who falls below a line; inequality compares shares across everybody, and either can change while the other stays put.
Learn it properly: the module
Also in: Income and wealth inequality