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poverty trap

noun
  1. 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
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Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012