Question
How does poverty line categorise poor people?

Answer

Poverty line provides us three categories of poor people:
  1. Chronic poor: They usually live below the poverty line, e.g., casual workers, landless workers etc. Such category can be of two types (i) Always poor (ii) Usually poor.
  2. Transient poor: Such category can be of two types (i) Churning poor (ii) Occasionally poor. Churning poor regularly move in and move out of poverty, e.g., seasonal workers, small farmers. Occasionally poor are rich most of the time but may sometimes have a patch of bad luck, e.g., people who gamble.
  3. Non-poor: Such category can be of two types (i) Occasionally Poor (ii) Never Poor. Never poor category includes those who live above the poverty line, e.g., doctors, teachers, etc.

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