Relative and Absolute Deprivation
Some sociologists, for instance Karl Polanyi, have argued that relative differences in economic wealth are more important than absolute deprivation, and that it is more significant in determining human quality of life. This debate has important consequences for social policy, particularly on whether poverty can be eliminated simply by raising total wealth or whether egalitarian measures are also needed.
A specific form of relative deprivation is relative poverty. A measure of relative poverty defines poverty as being below some relative poverty line, such as households who earn less than 20% of the median income. Notice that if everyone's real income in an economy increases, but the income distribution stays the same, the number of people living in relative poverty will not change.
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