Demographic factors also matter. For example, the proportion of families headed by single women is an important factor because such families tend to be poor in all countries. In addition, the choice of methods for comparing incomes that are measured in different currencies also affects the outcomes. It is striking, however, that using different methods to adjust for these factors does not change the basic result. Canada and Luxembourg have slightly lower absolute poverty rates than the United States largely for that reason.
Relative poverty is essentially a manifestation of the amount of income inequality.
Absolute poverty reflects the level of economic well-being families can enjoy based on the purchasing power of their incomes. By this latter test, the United States fares well in comparison with other advanced countries. Click here for an index of Conference Summary .