Lowincome

Low income refers to households or individuals whose earnings fall below a threshold used for policy analysis and social research. Thresholds are set differently across countries and programs, so the label is not universal. In many analyses, low income is based on after-tax and after-transfer income, adjusted for household size and composition, a method known as equivalized income. Two common approaches define low income: relative measures that compare to a country's median or average income (for example, a fixed percentage such as 50% or 60% of median income) and absolute measures that specify minimum consumption needs through national or international poverty lines.

Low-income status can be persistent or short-term, and it often correlates with factors such as unemployment or underemployment, disability, single-parent households, and high housing costs. Regional differences in prices and services also influence who is considered low-income within a given area. The consequences commonly include limited access to adequate housing, nutritious food, healthcare, education, and financial stability, which can increase exposure to debt and stress.

Policy responses aim to reduce low-income levels and mitigate hardships. These include social protection programs (cash transfers, food assistance), tax credits, housing subsidies, and public services like healthcare and education. Labor market measures, such as minimum wage policies and job training, are also used to improve earnings prospects. Data on low income inform budgeting, program targeting, and evaluations of inequality, though thresholds and methodologies remain subject to debate, particularly regarding cost of living, regional variation, and the balance between relative and absolute poverty concepts.