Distribution of income Poverty The poverty line is a fixed level of real income which is considered enough to provide a minimally adequate standard of living Inherently arbitrary, but still a useful benchmark Trends over time Differences across groups8 Distribution of Income: Poverty • The poverty line is a fixed level of real income which is considered enough to provide a minimally adequate standard of living. • Inherently arbitrary, but still a useful benchmark. – Trends over time – Differences across groups