Definition

Relative income poverty is measured here by the poverty rate and the poverty gap. The poverty rate is the ratio of the number of people who fall below the poverty line and the total population; the poverty line is here taken as half the median household income. However, two countries with the same poverty rates may differ in terms of the income-level of the poor. To measure this dimension of poverty, the poverty gap, i.e. the percentage by which the mean income of the poor falls below the poverty line, is also presented.

Income is defined as household disposable income in a particular year. It consists of earnings, self-employment and capital income and public cash transfers; income taxes and social security contributions paid by households are deducted. The income of the household is attributed to each of its members, with an adjustment to reflect differences in needs for households of different sizes (i.e. the needs of a household composed of four people are assumed to be twice as large as those of a person living alone).

For more statistics on economic, environmental and social issues visit online the OECD Factbook 2010.