High - GLOBAL STRATIFICATION High-income economies How do...

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GLOBAL STRATIFICATION High-income economies How do you measure poverty?— is it absolute or is it relative—or is it, as the social interactionists would claim, wholly subjective, so it is possible to be poor but happy! 1. Absolute poverty —people do not have enough wealth to get even the basic necessities of life—the World Bank specifies absolute poverty as income of less than $ 1 per day 2. Relative Poverty —people can afford basic necessities but do not have “an average standard of living”—measured by comparing incomes to each other and to prices— 3. Subjective Poverty —measured by comparing actual income against the income earner’s expectations and perceptions—leads away from precise economic terms into issues like status The Gini Coefficient —developed by the Italian statistician Corrado Gini , and first published in 1912, measures income inequality and used by the World Bank—ranges from zero
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