Question
Write a note on different categories of poverty.

Answer

We can categorize poor into three categories:
  1. Chronic Poor: Those who are below poverty line most of the time and reach above poverty line once in a while are called chronic poor. It includes:
  • Always Poor: Those who are always below poverty line.
  • Usually Poor: Those who are mostly below poverty line but once in a while they come above poverty line.
  1. Transient poor: Those people who keep fluctuating between the category of poor and non poor are called transient poor. It includes:
  • Churning poor: Those people who regularly move in and out of the poverty. These are seasonally employed people. When they have jobs they are above poverty line and when they don't have a job they are below poverty line.
  • Occasionally poor: Those who are rich most of the time but sometimes out of a business fluctuation or other mishappening become poor.
  1. Non Poor: These are the people who have never ever gone below poverty line.

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