9.1 Poverty Measurement and Alleviation Strategies
6 min read•july 30, 2024
Poverty measurement and alleviation are crucial aspects of social welfare policy. These tools help policymakers understand who's struggling and why. By analyzing poverty rates, income inequality, and multidimensional factors, governments can develop targeted strategies to help those in need.
Poverty alleviation strategies encompass various approaches, from to education and employment initiatives. These efforts aim to provide immediate relief and long-term solutions. However, challenges like systemic inequalities and policy design issues complicate the fight against poverty.
Defining and Measuring Poverty
Poverty Definitions and Dimensions
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Poverty in the United States, 2014: Key charts from the U.S. Census Bureau - Journalist's Resource View original
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The Multi-Dimensional Nature of Poverty in Djibouti View original
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Poverty in the United States, 2014: Key charts from the U.S. Census Bureau - Journalist's Resource View original
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Poverty in the United States, 2014: Key charts from the U.S. Census Bureau - Journalist's Resource View original
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The Multi-Dimensional Nature of Poverty in Djibouti View original
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Top images from around the web for Poverty Definitions and Dimensions
Poverty in the United States, 2014: Key charts from the U.S. Census Bureau - Journalist's Resource View original
Is this image relevant?
The Multi-Dimensional Nature of Poverty in Djibouti View original
Is this image relevant?
Poverty in the United States, 2014: Key charts from the U.S. Census Bureau - Journalist's Resource View original
Is this image relevant?
Poverty in the United States, 2014: Key charts from the U.S. Census Bureau - Journalist's Resource View original
Is this image relevant?
The Multi-Dimensional Nature of Poverty in Djibouti View original
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Poverty is a state of lacking sufficient financial resources to meet basic needs for food, clothing, shelter and other essentials
It is a complex, multidimensional issue that goes beyond just income and encompasses health, education, living standards, and social inclusion
measures poverty in relation to the amount of money needed to meet basic needs, while measures poverty in relation to the economic status of other members of society
The (MPI) incorporates health, education and standard of living indicators to provide a more comprehensive measure of poverty
Poverty Measurement Methods
The , determined by the U.S. government, is the minimum level of income deemed adequate for a family to meet basic needs
The poverty threshold varies by family size and composition (e.g. $27,479 for a family of four in 2021)
The is the percentage of people living below the
In the U.S., the poverty rate in 2021 was 11.6%, meaning 37.9 million people lived in poverty
The measures income inequality across a population, with 0 representing total equality and 1 representing total inequality
In 2021, the U.S. Gini coefficient was 0.494, one of the highest levels of inequality among developed countries
The (HPI) is used by the UN to measure poverty in both developing and developed countries based on life expectancy, education, and standard of living
Poverty Alleviation Strategies
Social Welfare Programs
Social welfare programs provide assistance to low-income individuals and families to help them meet basic needs
Major U.S. welfare programs include:
(TANF) which provides cash assistance
The (SNAP) which provides food assistance
which provides health insurance to low-income individuals
which subsidize private market rent for low-income households
Eligibility for welfare programs is typically based on income and assets, and benefits are means-tested (reduced as income rises)
Employment and Education Strategies
set a floor for hourly wages to ensure a basic standard of living for workers
As of 2023, the U.S. federal minimum wage is $7.25 per hour, although many states and localities have higher minimum wages
The (EITC) is a refundable tax credit for low to moderate income working individuals and families
In 2021, the EITC lifted about 5.8 million people out of poverty, making it one of the largest anti-poverty programs in the U.S.
provide skills training to help unemployed or underemployed workers gain better paying jobs
Examples include apprenticeships, vocational education, and workforce development programs
like Head Start aim to improve school readiness and long-term outcomes for children from low-income families
Research shows quality early education can lead to higher educational attainment, employment, and earnings in adulthood
International Development Strategies
programs provide small loans and other financial services to low-income individuals, mostly in developing countries, to help them start or expand small businesses
Grameen Bank in Bangladesh pioneered microfinance in the 1970s and has served over 7 million borrowers
Conditional Cash Transfer (CCT) programs provide money to low-income families contingent on certain behaviors, such as ensuring children attend school or get health check-ups
Mexico's Oportunidades program, started in 1997, was one of the first large-scale CCT programs and has been replicated in many other countries
The UN Sustainable Development Goals, adopted in 2015, include targets to reduce poverty, hunger, and inequalities in all countries by 2030
Strategies to achieve these goals include improving access to education, healthcare, clean water, and economic opportunities in developing countries
Government's Role in Poverty Reduction
Redistribution Policies
Governments can redistribute income through , where higher income individuals pay a larger share of their income in taxes
Most developed countries have a progressive income tax, though the degree of progressivity varies
protect against risks like unemployment, disability and old age by providing benefits to those who experience these conditions
In the U.S., major social insurance programs include Social Security, Medicare, unemployment insurance and worker's compensation
Some argue for a (UBI), a government-provided unconditional cash payment to all citizens, as a way to alleviate poverty
Experiments with UBI have been conducted in several countries (Finland, Canada) with mixed results
Public Goods and Services
Governments fund , which is seen as a key to upward mobility and escaping poverty
However, school quality and educational attainment still vary significantly by socioeconomic status, with students from low-income families more likely to attend under-resourced schools
Policies to promote affordable housing, such as housing vouchers, low-income housing tax credits, and rent control, can help low-income families access stable housing
Housing instability and homelessness are major contributors to poverty and can have negative impacts on health, education, and employment
like vaccinations, maternal and child health services, and clean water and sanitation can improve health outcomes for low-income populations
Poor health is both a cause and consequence of poverty, creating a vicious cycle
Labor Market Policies
Governments can enact policies to boost wages and improve job quality for low-wage workers
Raising the minimum wage can increase incomes for low-wage workers, though critics argue it may reduce employment
Research on the employment effects of minimum wage increases is mixed, with many studies finding little to no impact on jobs
Strengthening and labor unions can help workers negotiate for higher wages and better working conditions
Union membership has declined significantly in the U.S. over the past several decades, contributing to wage stagnation
Enforcing like overtime pay, worker safety regulations, and anti-discrimination laws can protect vulnerable workers from exploitation
Low-wage workers, immigrants, and workers of color are more likely to experience wage theft and dangerous working conditions
Challenges of Poverty Alleviation
Complexity and Root Causes
Poverty is a complex, multifaceted issue rooted in systemic inequalities like racism, sexism, and classism
Policies often address symptoms rather than root causes of poverty, limiting their effectiveness
, where poverty is passed down from parents to children, can be particularly difficult to escape
Children born into poverty are more likely to experience poor health, limited education, and fewer economic opportunities, perpetuating the cycle of poverty
, such as that found in distressed urban neighborhoods or isolated rural areas, can be entrenched and resistant to change
Concentrated poverty is associated with higher crime, poorer health outcomes, and limited access to jobs and services
Policy Design and Implementation Challenges
can create disincentives to work, as benefits are reduced as income rises
This "" can make it difficult for recipients to transition off assistance and into self-sufficiency
Strict eligibility requirements and administrative hurdles for welfare programs can make it difficult for those in need to access benefits
This is especially true for vulnerable populations like the homeless, mentally ill, or those with limited English proficiency
Funding for poverty alleviation programs is often limited and can be cut in times of budget austerity
Political support for welfare programs tends to be weak, especially during economic downturns
Policies may have unintended consequences that can undermine their goals
For example, some argue that welfare programs encourage single parenthood, or that the minimum wage reduces employment for low-skill workers
Coordination and Behavioral Challenges
Poverty alleviation policies are often siloed and uncoordinated across different agencies and levels of government
This can lead to inefficiencies, duplication of services, and gaps in the social safety net that allow people to fall through the cracks
Even with a strong safety net, individual behavioral factors like substance abuse, family instability, or lack of education can perpetuate poverty
Addressing these issues requires a comprehensive approach that includes mental health services, family support, and educational opportunities
Overcoming the stigma and shame associated with poverty and welfare receipt can be a barrier to program participation
Negative stereotypes about the poor as lazy or undeserving can make people reluctant to seek help