Chapter 19 Flashcards
Welfare state
The collection of government programs designed to alleviate economic hardship
Government transfer
A government payment to an individual or a family
Poverty program
A government program designed to aid the poor
Social insurance program
A government program designed to provide protection against unpredictable financial distress
poverty threshold
The anual income below which a family is officially considered poor
poverty rate
The percentage of the population with incomes below the poverty threshold
working poor
workers whose income falls at or below the poverty threshold
Mean household income
The average income across all households
Median household income
The income of the household lying at the exact middle of the income distribution
Gini coefficient
A number that summarizes a country’s level of income inequality based on how unequally income is distributed across quintiles
means-tested
A program available only to individuals or families whose incomes fall below a certain level
In-kind benefit
A benefit given in the form of goods or services
Negative income tax
A program that supplements the income of low-income working families
Private health insurance
Each member of a large pool of individuals pays a fixed amount to a private company that agrees to pay most of the medical expenses of the pool’s members
notch
When earning more actually leaves someone worse off through lost benefits
