Income deficit is the difference between a single person or family's income and its poverty threshold or poverty line, when the former is exceeded by the latter.[1] Data on the income deficits of various members of a population allow for the construction of one type of measurement of income inequality in that population. Individuals or families that fall below the line are considered to be in poverty whereas families that fall above are not.[2] The income deficit is one of two measures that are used to determine a person or family's income distance from the poverty threshold, the other being a ratio rather than a difference.
The net income deficit consists largely of income payments and receipts on capital, as well as cross-border labour income (compensation of employees). Given the relatively small level of net cross-border labor income payments, there are two key drivers of the net income deficit: the level of net foreign liabilities being financed and the yield on those liabilities.https://treasury.gov.au/sites/default/files/2019-03/round6.pdf
- ^ Staff, Investopedia (8 January 2004). "Deficit". Investopedia. Retrieved 26 September 2017.
- ^ "What are Poverty Thresholds and Poverty Guidelines? | Institute for Research on Poverty | University of Wisconsin–Madison". www.irp.wisc.edu. Institute for Research on Poverty. Archived from the original on 30 January 2010. Retrieved 27 September 2017.