Relative poverty
Relative poverty refers to deprivation relative to average living standards in a society, typically defined as income below a percentage of median income (e.g., below 60% of median). It reflects inequality rather than absolute deprivation.
Real World
In the UK, the Joseph Rowntree Foundation reported that millions of households fall below 60% of median income, meaning a family in London may be classed as relatively poor despite an income that would be comfortable in a lower-cost country.
Exam Focus
Contrast relative and absolute poverty explicitly in evaluation — examiners reward candidates who explain why economic growth can reduce one without reducing the other.
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