As a specialist in the field of economics and social welfare, I can provide you with an in-depth explanation of how poverty is measured. Poverty is a complex and multifaceted issue, and as such, it is measured using a variety of methods and indicators. The two primary approaches to measuring poverty are the relative poverty measure and the absolute poverty measure.

Relative Poverty Measure: This method is commonly used by organizations like the Organization for Economic Co-operation and Development (OECD) and the European Union. It is based on the concept of "economic distance," which typically sets the poverty line at 60% of the median household income. This means that if a household's income falls below 60% of the median income for the area in which they live, they are considered to be living in relative poverty. This approach acknowledges that poverty is not just about having insufficient income to meet basic needs but also about being unable to participate in the lifestyle and activities that are considered normal in a society.

Absolute Poverty Measure: On the other hand, the United States uses an absolute poverty measure, which is based on a fixed set of minimum needs. The U.S. Department of Health and Human Services sets a threshold for the amount of income a family needs to avoid poverty. This threshold is adjusted for family size and is updated annually to reflect changes in the cost of living. The absolute poverty line is designed to provide a baseline for the most basic necessities, such as food, clothing, and shelter.

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Measurements. The main poverty line used in the OECD and the European Union is a relative poverty measure based on "economic distance", a level of income usually set at 60% of the median household income. The United States, in contrast, uses an absolute poverty measure.read more >>