Relative Income

Definition

Relative income refers to an individual's income compared to others within a specific group or society. It focuses on the relative position rather than the absolute amount earned by an individual.

Related terms

Income Inequality: Income inequality refers to the unequal distribution of income among individuals or households within a society.

Poverty Line: The poverty line is a threshold set by governments or organizations that determines whether someone is considered living in poverty based on their income level.

Disposable Income: Disposable income is the amount of money left after taxes and other mandatory deductions. It represents the income available for spending or saving.