Rather than measuring people’s economic situation against a fixed bar, relative poverty gauges where people stand compared to everyone else in their society. There are many ways of setting this line, but here’s how the OECD does it: First, statisticians examine the full range of incomes in a country - from lowest to highest- and identify the point that separates the top half of earners from the bottom half. This is the median income. The poverty line is then calculated at 50% of the median income.