relative poverty

Meaning: Relative poverty is a standard set by the society a person lives in. People are poor if their resources fall well below the average or median, so they cannot take part in the customary activities, diet and living conditions of that society. Because it depends on the distribution of resources, it is closely tied to social inequality. A common measure sets the line at a fraction of the median income, such as 50 or 60 percent.

On the MCAT: Expect passages on social stratification, inequality and health. You may be asked to tell relative poverty from absolute poverty, which is lack of basic needs such as food, water, shelter and safety, often set by a fixed threshold. Key reasoning: if everyone's income rises by the same percentage, relative poverty stays the same, because the gaps between people do not change, while absolute poverty can fall. Relative poverty also tends to be higher in societies with greater income inequality. It is linked to health differences across the social gradient, even where basic needs are met.

Common confusion: Students often treat relative poverty as a milder form of absolute poverty. It is a different kind of measure. A person can be in relative poverty in a wealthy country and still have far more resources than someone in absolute poverty elsewhere. The fact that settles it: relative poverty compares a person with others in the same society, while absolute poverty compares them with a fixed standard of need.