The Causes And Complications Of Poverty

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1. Introduction 1.1 Background Information Poverty is a social ill that invades not only the developing world. It is also a large-scale problem of a modern society in the industrial countries of the European Union (EU). In 2014, 122 million of the EU population - one in every four - was at risk of poverty or social exclusion (Eurostat, 2015). This index has a number of consequences and impacts, beyond just those who directly experience the destitute condition, every level of society. Poverty leads to higher unemployment rates, crime, child labor, transmission of diseases, etc. As a result, it determines the life environment for the whole nation and indicates its subjective well-being (SWB). SWB is an indispensable condition of a sound society, political stability and sustainable development of any country. Therefore, promoting the flourishing life and increasing SWB, or in other words life satisfaction and happiness, are a key priority of any national social policy. One of the main conditions to improve SWB is to alleviate poverty and decrease its negative effect (European Policy Center, 2011). Much of the economic literature assesses the puzzling relationship between poverty and SWB from income poverty perspective. Previous studies show mostly modest correlations between income and SWB in affluent countries and stronger effect in impoverished societies (McBride, 2001). It has been claimed that once the income reaches the poverty line it has little effect on well-being,

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