Poverty traps arise when unanticipated shocks push households past a critical asset threshold, but welfare effects vary with shock magnitude rather than always cascading.
Poverty traps arise when unanticipated shocks push households past a critical asset threshold, but welfare effects vary with shock magnitude rather than always cascading.
corroborated: 2 independent passages support this claim
XREF: connects to: Extreme misfortune can have cascading negative effects on families. — Crews, Harry, A childhood the biography of a place, 21; Households lacking emergency reserves see modest income shocks trigger cascading defaults, with children pulled from school during crises rarely returning even when conditions improve. — The Poverty-Crisis Trap: Why Financial Crises and Poverty Reinforce Each Other