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Definition of poverty trap - 2 dictionary results
Main Entry:  poverty trap
Part of Speech:  n
Definition:  a situation for low-income people in which an increase in wages is offset by a loss of welfare benefits
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poverty trap

noun
a situation in which an increase in income results in a loss of benefits so that you are no better off 
WordNet® 3.0, © 2006 by Princeton University.
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