Poverty Wage Level

A Poverty Wage Level is a full-time wage level that yields household income below the poverty threshold (leaving workers unable to meet basic needs).

• AKA: Subsistence-Level Wage, Below-Poverty Compensation, Poverty-Level Wage.
• Context:
  • It can characterize Employment Compensation that falls below poverty line calculations.
  • It can require Workers to seek supplemental income sources or public assistance.
  • It can affect Full-Time Workers despite maintaining standard employment hours.
  • It can vary by Geographic Region based on local poverty thresholds and cost of living.
  • It can impact Worker Well-Being through material deprivation and economic stress.
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  • It can often occur in Service Industry Employment and retail sector employment.
  • It can often persist despite Minimum Wage Laws when minimum wage levels lag behind poverty thresholds.
  • It can often trap Workers in Working Poverty despite labour force participation.
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  • It can range from being a Severe Poverty Wage to being a Near-Poverty Wage, depending on its poverty wage gap size.
  • It can range from being a Short-Term Poverty Wage to being a Persistent Poverty Wage, depending on its poverty wage duration.
  • It can range from being an Individual Poverty Wage to being a Household Poverty Wage, depending on its poverty wage family impact.
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  • It can be calculated using Poverty Threshold Methodology and household size assumptions.
  • It can be contrasted with Living Wage which enables basic need satisfaction.
  • It can contribute to Functional Unemployment when combined with unemployment status.
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• Examples:
  • US Federal Minimum Wage (2025) at $7.25/hour yielding approximately $15,080 annually for full-time workers.
  • Regional Poverty Wage Examples, such as:
    • Urban Poverty Wage in high-cost metropolitan areas where minimum wage earnings fall below local poverty lines.
    • Rural Poverty Wage in low-cost regions still insufficient for basic household needs.
  • Sector-Specific Poverty Wage Examples, such as:
    • Food Service Poverty Wage where tipped minimum wages result in below-poverty income.
    • Retail Sector Poverty Wage with hourly compensation below poverty threshold calculations.
    • Agricultural Worker Poverty Wage despite seasonal full-time employment.
  • International Poverty Wage Examples, such as:
    • Developing Nation Poverty Wages relative to national poverty lines.
    • Export Manufacturing Poverty Wages in global supply chains.
  • Historical Poverty Wage Examples, such as:
    • Industrial Revolution Poverty Wages leading to labour movement formation.
    • Great Depression Era Poverty Wages prompting minimum wage legislation.
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• Counter-Examples:
  • Living Wage, which enables workers to meet basic needs without requiring public assistance.
  • Middle-Class Wage, which provides disposable income beyond subsistence level.
  • Professional Salary, which typically exceeds poverty thresholds by substantial margins.
  • Apprentice Wage, which may be low but includes skill development and future earning potential.
• See: Minimum Wage, Living Wage, Working Poor Person, Poverty Threshold, Functional Unemployment, Income Inequality, Wage Policy.

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