Pauperisation

Pauperisation, or pauperization, is the process by which individuals or groups become, or increasingly remain, poor as a result of economic and social forces. In sociological and economic usage, it refers to a transition from relative prosperity or mid-range income to poverty, or to the persistence of poverty across generations. The term emphasizes not only income levels but also the erosion of social and economic security, including asset loss, debt, and limited access to services.

Pauperisation can be chronic or episodic and may reflect widening inequality, labor market changes, and shifts in welfare regimes. It can affect individuals, families, or entire communities, particularly those with low educational attainment, precarious employment, or exposure to shocks such as illness, divorce, or economic crisis. The concept is often used to analyze trends in capitalist economies where growth does not translate into broad-based improvements in living standards for all.

Main drivers include macroeconomic shocks, wage stagnation, unemployment, automation and outsourcing, rising living costs (housing, healthcare, education), and policy choices that reduce social protection or eligibility. Mechanisms involve income declines, depletion of savings, rising debt burdens, loss of housing, and social exclusion, which can create a cycle that is difficult to escape.

Measurement is complex; common indicators include relative poverty rates, multidimensional poverty indices, asset ownership, debt-to-income ratios, and constraints on accessing housing, healthcare, and education. Pauperisation is often discussed in relation to debates about inequality, social safety nets, and the adequacy of welfare states.

Policy responses focus on strengthening social protection, progressive taxation, affordable housing, healthcare access, and education and training. Debates include the feasibility of universal basic income, minimum wage policies, and targeted transfers to vulnerable groups.