poverty trap

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poverty trap

the situation where a slight increase in earnings leads to an individual or

family being worse off overall as a consequence of losing entitlement to other benefits. People on low incomes may be eligible not only for social security support but may also make lower income tax and National Insurance (NI) contributions. A slight increase in their earnings may lead to the loss of their social security entitlement and put them in a position where they have to pay higher income tax and NI contributions; the slight increase in earnings may be considerably less than the extra amount they have to pay in NI and income tax contributions and their loss of social security support. The existence of a poverty trap is seen to be inevitable where there is a system of means-tested social security benefits. A similar situation exists where single mothers may be considered to be in a poverty trap in so far as a woman in a reasonably well-paid job may have that income jeopardized by the need to pay for childcare. By taking a part-time job or giving up paid work altogether she may be able to look after her child or children, but is likely to lose any occupational benefits, including a pension, as well as her career prospects.

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She said: "If you're trying to better yourself and get out of poverty, the social welfare should encourage you to do better - to get away from the poverty trap." Erica was due to start class at 2pm today and is keen to pursue a career in social work.
Ikegami, 2008, Poverty Traps and Social Protection, Working Paper.
"Poverty Traps," in Handbook of Economic Growth, edited by P.
Campaigners claimed the plans would create a new poverty trap because they would act as a brake on tenants wanting to earn more money.
One study reports on an experiment to see if students can avoid a "poverty trap."
"Health, education, environmental sustainability, personal and community empowerment, access to economic opportunity: All these are prerequisites for escaping poverty traps.
Poverty traps occur when an increase in private income leads to a reduction in disposable income.
Had such been the case, corruption would not give rise to poverty traps. To illustrate this point consider a poor person with health problems who cannot obtain medical care because they cannot afford the bribes.
ISLAMABAD -- Prime Minister Shahid Khaqan Abbasi Wednesday said the government was committed not only to provide every possible support to the poor but also assist them in skill development and capacity building so that they were able to sustain themselves and permanently exit poverty traps. He said this while talking to a delegation of Rural Support Programme Network (RSPN), headed by its Chairman Shoaib Sultan Khan, which called on him at PM Office.
I supported the commitment to develop a new housing support scheme to replace the rent supplement and remove the poverty traps. That scheme makes a lot of sense but nobody expected for a moment that, by introducing it, the Government would at the same time deem people to have their housing needs met, such that people would effectively lose their places on the housing waiting list.
Their topics include consumption variety and growth, the role of self-confidence and social norms in redistributing opportunities in a job search model, and economic growth and poverty traps.