Poverty and Inequality

• What is absolute poverty defined as?

  Living below subsistence
• What does absolute poverty mean for a person's basic needs?

  They cannot meet basic needs like food and shelter
• What measurement does the World Bank use for absolute poverty?

  Less than $1.25 per day
• How is relative poverty measured in the UK?

  Below 60% of the median income
• What is used to measure relative poverty in the US?

  A basket of goods for average living standards
• How can relative poverty be viewed in terms of income inequality?

  As a measure of income inequality
• What is the difference between poverty and inequality?

  • Poverty refers to lack of basic needs
  • Inequality refers to the distribution of wealth
• What can higher education levels lead to in terms of job access?

  Access to jobs with higher wages
• What happens to those with lower education levels in the job market?

  They struggle to find well-paying jobs
• What is the impact of part-time and temporary jobs on earnings?

  Limits how much people can earn
• What economic event exacerbated underemployment issues?

  The Great Recession
• What structural change in the UK economy has led to job losses?

  Shift to a service-based economy
• What is structural unemployment?

  Long-term unemployment due to skill deterioration
• What happens to skills during hysteresis?

  Skills deteriorate over time
• What is wealth defined as?

  A stock of assets
• How do welfare payments compare to wages?

  They tend to increase less than wages
• What effect do regressive taxes have on income inequality?

  They increase inequality and relative poverty
• What does wealth inequality refer to?

  The unequal distribution of assets
• How can health problems affect employment opportunities?

  They can make it hard to get a job
• What impact do health issues have on multinational corporations (MNCs)?

  They deter MNCs from investing in a country
• How is income defined?

  Money received on a regular basis
• What can wars and conflicts lead to for individuals?

  Fleeing homes and extreme poverty
• What is income inequality?

  Uneven distribution of income across a nation
• How does corruption affect poverty levels?

  It can lead to higher levels of poverty
• What are the two measurements of income inequality mentioned?

  • The Lorenz curve
  • The Gini coefficient
• What can natural disasters do to people's livelihoods?

  They can destroy livelihoods and push people into poverty
• What does the Lorenz curve measure?

  The distribution of income and wealth

  
• What does the line of perfect equality on the Lorenz curve represent?

  Distribution where richest x% owns x% of income
• What was the estimated impact of the 2015 Nepal earthquake on poverty?

  1 million people pushed below the poverty line
• What does the Lorenz curve indicate about income distribution?

  It shows actual distribution and levels of inequality

  
• What does a Gini coefficient value of 0 indicate?

  Perfect equality
• What are the main causes of changes in absolute and relative poverty?

  • Inequality in wages or unemployment
  • Welfare payments
  • Taxes
  • Disease and health problems
  • Wars and conflicts
  • Corruption and political oppression
  • Natural disasters
• What does a Gini coefficient value of 1 indicate?

  Perfect inequality
• What are some causes of income and wealth inequality?

  • Inequality in wages
  • Welfare payments and taxes
  • Unemployment
  • Changes to the UK tax system
• How has the job market changed recently affecting wages?

  More part-time and temporary jobs available
• What is the wage gap between skilled and unskilled workers in the UK?

  It has increased recently
• Why do women earn less than men on average?

  Due to career breaks and fewer hours
• What impact do regressive taxes have on income inequality?

  They increase inequality by burdening lower incomes
• How does unemployment contribute to income inequality?

  It causes relative poverty and increases inequality
• What tax changes occurred in the UK over the last few decades?

  Shift towards indirect taxes and lower rates