What is absolute poverty?
is generally based on the notion of subsistence, the minimum needed to sustain life. “a condition characterised by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. It depends not only on income but also on access to social services”.
(based on not enough; food, shelter)
What is relative poverty?
Relative poverty is about the standard of living (actual or potential) of those identified as poor compared with that of those declared to be non-poor. It is about a state of relative disadvantage that is deemed to not meet minimum acceptable community standards. It is now sometimes asserted that in MEDCs there is little or no absolute poverty but that there are varying degrees of relative poverty depending on the stringency or generosity of the threshold used
(less than others)
What type of poverty does NZ have?
Relative poverty
Relative poverty line = x% of the median income
What is the constant value approach?
‘fixed line’ or ‘anchored’ approach to adjusting thresholds over time maintains the real value of a chosen poverty line by adjusting it each year with the CPI. Median income value is held constant (only adjusted for inflation). On this approach a household’s situation is considered to have improved if its income rises in real terms, irrespective of whether its rising income makes it any closer or further away from the middle or average household. (simplify)
What is the relative to contemporary median?
adjusted every year, ‘moving line’ approach sets the poverty line as a proportion of the median income from each survey so that the threshold changes in lockstep with the incomes of those in the middle of the income distribution. On this approach the situation of a low-income household is considered to have improved if its income gets closer to that of the median household, irrespective of whether it is better or worse off in real terms (simplify)
Define material hardship?
a measure of poverty focusing on whether households can afford essential items and services, going beyond just income to assess living conditions, such as food, clothing, heating, and transport
Why are value measures vital?
they decide on how to give practical effect to the ‘minimum acceptable’ and ‘inadequate’ descriptors in the definition. (i.e. what minimum standard of living is acceptable) These decisions are very influential on the resulting numbers and therefore on the overall perception of the size of the ‘poverty issue’.
what are the common choices for relative income fractions
50 or 60 %
