Difference Between Absolute Poverty and Relative Poverty

Absolute Poverty and Relative Poverty are two concepts that help us measure the level of poverty in a country, following parameters such as education, unemployment, policies, or access to the resources necessary for a person to lead a life worthy.

Poverty levels are classified according to the specific situation of a person or group of people. The types of poverty are observed when there are situations of extreme need that lead them to suffer from hunger, but also when there are a series of social and economic disadvantages with respect to individuals from the same environment.

What is Poverty?

Poverty is related to a state of lack, by not having access to the most basic supplies to be able to live such as food, water, electricity, and gas.

It is the deprivation of the necessary means to ensure an adequate quality of life that does not generate enormous differences between one person or another, or between one country or another.

Difference Between Absolute Poverty and Relative Poverty

Absolute poverty is a situation in which a person does not have the basic needs covered to be able to live. It has deficiencies in basic goods and services, especially food, housing, and access to drinking water or basic hygiene and health services.

On the other hand, Relative poverty refers to people who are at a disadvantage compared to other people in the same environment in relation to the economic and social sphere. It is a concept that is connected to inequality, that is, it is a series of difficulties such as the difficulty of finding a job.

What is an example of absolute poverty?

Its main causes are debt, the world population increase, natural disasters, conflicts, and child labor. For example, a 12-year-old boy who has never been to see a doctor or attended school.

What is an example of Relative Poverty?

Unemployment, poor health, and inequalities within the labor market are the major causes of relative poverty. An example of someone in relative poverty is a person who does not have a job and relies on government assistance to maintain.

How to calculate relative poverty?

For this aim, the factors of the environment in which such is being carried out must be taken into account. If you want to measure the relative poverty, it will suffice to know the average monthly income of each inhabitant of the neighborhood.