Imcome inequality and poverty Flashcards
Inequality definition
Social condition of hierarchical differentiation in which people are ranked in terms of their income, wealth, status, gender, ethnicity, age, nationality, location, the
ability to exercise power and other attributes
What is individual wealth made out of?
physical wealth + financial wealth + human capital
What is individual income made out of?
Money income (wage, dividends, interests + Non-money income (job satisfaction, set of opportunities, enjoyment of leisure)
How poverty is defined? described?
Poverty – is a condition when material, social or cultural resources are missing for maintaining even lowest socially acceptable living standard.
Inability to enjoy living conditions that are prevailing in the state (nutrition, living standards)
Inability to enjoy conditions that allow to communicate and follow common behaviour patterns
Inability to perform his role as a s member of society
How poverty can be measured?
Actual consumption of a specific bundle of goods
Total expenditure
Total money income
How to compare poverty/equality among different social groups, different households?
- With the help of equivalence scales each household type in the population is assigned a value in proportion to its needs. The factors commonly taken into account to
assign these values are the size of the household and the age of its members (whether they are adults or children) - Dividing people into deciles and quantiles
- Consumer basket. Expenditure for food divided by expenses
Poverty indicators
Total monetary income - income differences in different social groups
Gini coefficient - measures income inequality
Poverty lines (absolute, relative, subjective poverties)
Poverty level, gap, trap
Lorenz curve
Absolute poverty definition
a person’s money income is too low to keep him alive and healthy.
Absolute poverty line: Value of minimum consumption basket (food and non-food).
Relative poverty definition
Describes a person as poor in comparison to other members of their society. Relative because of measure to other people. Expressed by %
Subjective poverty definition
The perception by the individual as to whether s/he lives in poverty or has what isnecessary for a decent life. This method states that families are poor if their incomes are not sufficient „to make ends meet” according to their opinion
What is social exclusion?
Social exclusion refers to processes in which individuals and entire communities of people are systematically blocked from rights, opportunities and resources (e.g. housing, employment, healthcare, civic engagement, democratic participation and due process) that are normally available to members of society and which are key to social integration
What is social cohesion?
society without poverty, without significant regional differences in employment level and living standards, with strong social security
How Fritzpatrck would split equality into different 4 approaches?
Equality of opportunity for welfare
Equality of opportunity for resources
Equality of welfare
Equality of resources
Definition of Persons at risk of poverty or social exclusion
Persons at risk of poverty or social exclusion are those who meet at least one of the following conditions: living
at risk of poverty, facing severe material deprivation or living in households with very low work intensity
