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Poverty

In: Social Costs of Transformation to a Market Economy in Post-Socialist Countries

Author

Listed:
  • Jan Adam

    (University of Calgary)

Abstract

Poverty is usually understood as a standard of living below a certain threshold which can be called the poverty line. The latter expressed in terms of real incomes or of a basket of goods and services can be set in different ways; it should, however, be understood that it is relative in the sense that it varies in space and time. The poverty line is at different level in different countries. An average American poor person is certainly better off than a poor person in a developing country. As Atkinson and Micklewright (1992, p. 185) point out: ‘Subsistence needs must reflect in part the standard of living of the country in which those needs are being assessed.’ With the increase in the standard of living, the poverty line is adjusted after some time. The package of goods and services which is at the poverty line nowadays in North America is surely larger and richer than it was in the past. As long as there are large inequities, poverty will continue to exist.

Suggested Citation

  • Jan Adam, 1999. "Poverty," Palgrave Macmillan Books, in: Social Costs of Transformation to a Market Economy in Post-Socialist Countries, chapter 10, pages 155-170, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-50087-7_10
    DOI: 10.1057/9780230500877_10
    as

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