How relative poverty in terms of income can be measured?



Relative poverty in terms of income can be measured by a number of methods but gini method is most popular. Income distribution of the population in different fractile groups is estimated and a comparison of the levels of living of the top 5% to 10% with the bottom 5% to 10% of the population is made. Thus, relative poverty indicates the relative position of different segments of the population j in the income hierarchy.