Children are the age group most likely to live in poverty. In any given month, a

Question

Children are the age group most likely to live in poverty. In any given month, about 20% of children are living in households subsisting below the poverty line. Children make up about 25% of the U.S. population as a whole, but they make up more than 40% of the chronically poor (that is, those who live in poverty every month for 36 months in a row). The birth of a child is among the most common "precipitating events" for a poverty spell (i.e. the trigger; job losses and health crises are other common precipitating events). What is it about the way poverty is defined/measured and about social policy that produces this result? As in the previous question, there are many relevant factors, but you don't need to cover everything. Just identify two relevant factors, which may overlap with the factors you named in your answer to the previous question. (3-4 sentences)

Explanation / Answer

Poverty is defined when the households or individuals do not have enough resources or income to meet their basic needs, i.e. food, shelter, clothing. People who are at or below the poverty line meet inequalities while meeting consumption of commodities and services. Their livelihood is worse than the general standard of living. There are two types of poverty:

Absolute poverty and relative poverty

Absolute Poverty: is measured on the basis of individual's yearly income.

Relative poverty is also known as social poverty as it depends upon social activities.

Poverty line implies threshold below which an individual or household will be classified as poor.

Poverty is measured keeping in mind 3 key aspects:

1. Individual's level of income

2. Identifying relevant welfare measure.

3. Selection of poverty line

4. Selection of poverty indicator: Poverty indicator helps in making report of population as a whole.

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