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Imagine that youve been unemployed and seeking work for months. Government benefit programs have helped you cover rent, utilities, and food, but youre barely getting by. Finally, you hear back about a job application. You receive your first paycheck in months, and things seem to be turning around. But theres a catch. Your new job pays just enough to disqualify you from the benefit programs, and not enough to cover the same costs. To make things worse, you have to pay for transportation to work, and childcare while youre at the office. Somehow, you have less money now than when you were unemployed. Economists call this demoralizing situation the welfare trap one of the many different poverty traps affecting millions of people around the world. Poverty traps are economic and environmental circumstances that reinforce themselves, perpetuating poverty for generations. Some poverty traps are tied to an individuals circumstances, like a lack of access to healthy food or education
