--- a/lib/Makefile.am
+++ b/lib/Makefile.am
@@ -46,7 +46,7 @@ EXTRA_libipset_la_SOURCES = \
 
 EXTRA_DIST = $(IPSET_SETTYPE_LIST) libipset.map
 
-pkgconfigdir = $(libdir)/pkgconfig
+pkgconfigdir = $(prefix)/$(libdir)/pkgconfig
 pkgconfig_DATA = libipset.pc
 
 dist_man_MANS = libipset.3