Cause Of Poverty

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The UN says that basic social protection for the poorest in the world would cost less than two percent of world GDP. According to their research, slightly more than 2.2 billion people in the world are poor or close to the poverty line, and this would be the number could increase as a result of the global financial crisis and natural disasters. It is estimated that nearly 1.5 billion people in 91 developing countries live in absolute poverty. There are different causes of poverty that affect people's lives not only on a regional scale, but also on global level. As already mentioned, one of the cause of economic poverty is unemployment. Unemployment and poverty are more common in the developing economies than in the developed economies. However, due to the global economic recessions, the developed…show more content…
This inability is related to insufficient access to education. A low level of schooling can limit an individual’s earning ability. One research that is done by Caroline Hoxby (1994) shows that the quality of local public education is improved in areas where there is more competition due to a greater availability of nonpublic education. Another reason for low earnings ability is inadequate training. The German system of formalized apprenticeships appears to allow Germany to escape the high youth unemployment rates that plague much of Europe and may also reduce poverty in later years. While in the United States, the minimum wage legislation limits the ability of individuals with low education, low skills, and low ability to obtain on the job training. For example, an employer cannot afford to pay the minimum wage and provide training to those with the lowest skills, but when someone who comes to a job with good ability and skills can both earn at least the minimum wage and also obtain additional skills through on the job
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