various groups and then comparing the groups, a task that we can be carry out in several ways, as the next

Clear It Up feature shows.

CLEAR IT UP

How do you separate poverty and income inequality?
Poverty can change even when inequality does not move at all. Imagine a situation in which income for everyone in

the population declines by 10%. Poverty would rise, since a greater share of the population would now fall below

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15.4 • Income Inequality: Measurement and Causes 371

the poverty line. However, inequality would be the same, because everyone suffered the same proportional loss.

Conversely, a general rise in income levels over time would keep inequality the same, but reduce poverty.

It is also possible for income inequality to change without affecting the poverty rate. Imagine a situation in which a

large number of people who already have high incomes increase their incomes by even more. Inequality would rise
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