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Essay / Differences between absolute, relative and subjective...
Background of the studyPoverty is the lack of necessities such as basic food, shelter, medical care and security which are generally considered necessary for life. being human (Bradshaw, 2006). Poverty is where people have an unreasonably low standard of living compared to others and experience difficulties in daily life (McClelland, 2000). The measure of poverty is the “at-risk-of-poverty threshold” which is derived from the net disposable income of the household which includes the income of all members of the household after taxes and social security contributions, divided by the weighted factor of all members of the household , called “net equivalent amount”. household disposable income” (Buttler, 2013). The poverty line is the minimum acceptable standard of well-being indicator that separates the poor from the non-poor (Albert and Collado, 2004). If the household income falls below a specific income level, the household is said to be poor (van Praag and Ferrer-i-Carbonell, 2005). But poverty remains a complex and multidimensional phenomenon (Santarelli, 2013). As Makoka and Kaplan (2005) indicated, poverty is determined in different ways by different institutions and poverty indicators also differ. Hagenaars and De vos (1998) divided the definition of poverty into three categories: absolute definitions, relative definitions and the subjective definition. Absolute poverty refers to sub-minimum subsistence, socially acceptable living conditions, generally established on the basis of nutritional needs and other essential goods; relative poverty compares the lowest segments of a population to higher segments, generally measured in income quintiles or deciles (Lok-Dessallien, 2000). And subjective poverty which is defined by looking at who people consider poor (Eszter, 2011). Mor...... middle of article ......ition Marks (2005) in his work on income poverty, subjective poverty and financial stress for the Ministry of Family and Community Services, according to which the Subjective poverty is a perspective approach on how people perceive themselves. The World Bank Institute (2005) builds on the question of what level of minimum income is most needed to make ends meet. Conceptual framework The conceptual framework is presented in Figure 1. The main variables are subjective poverty and conditional financing. These have indicators that are Family size According to Orbeta (2006), in his study Empirical Overview of the relationships between family size, poverty and vulnerability to poverty, there is a clear indication that poverty s gets worse as one moves from smaller to larger family size. households or poverty increases as family size increases, in fact, a larger family reduces household savings