What does the term 'poverty trap' mean?

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A condition where individuals receiving government aid gain little to no financial improvement by working more because they must repay previously received benefits.A scenario in which people are unable to secure employment.A circumstance where those on welfare see minimal financial benefit from increasing their work hours since their benefits decrease and taxes increase accordingly.A situation where beneficiaries of state support face employer bias, making it harder for them to obtain jobs.

Explanation

The poverty trap describes a situation where individuals receiving government assistance find that working additional hours results in little or no net income gain because the increase in earnings reduces their benefit payments and raises their tax liabilities, thereby discouraging them from increasing their work effort.