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poverty trap

the situation of being unable to escape poverty because of being dependent on state benefits, which are reduced by the same amount as any extra income gained
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition
© William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
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a situation for low-income people in which an increase in wages is offset by a loss of welfare benefits's 21st Century Lexicon
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