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A "poverty trap" refers to the situation where

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A "poverty trap" refers to the situation where

A "poverty trap" refers to the situation where

▸ the government has imposed a negative income tax.

▸ tax-generated disincentives exist for middle-income persons to increase their earned income.

▸ low-income persons whose only income for a period of 5 or more years has been welfare benefits.

▸ low-income persons whose only income for a period of 2 or more years has been welfare benefits.

▸ tax-generated disincentives exist for very-low-income persons to increase their earned income.

Textbook

Microeconomics

Edition: 17^th

Author: Ragan

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