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HOW TO MEASURE EXTREME POVERTY IN THE EU

HOW TO MEASURE EXTREME POVERTY IN THE EU. Background and Objectives Brussels 22 September 2009. Background. 2000 Lisbon Summit commitment to fight poverty and social exclusion using OMC. Laeken indicators – Common indicators

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HOW TO MEASURE EXTREME POVERTY IN THE EU

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  1. HOW TO MEASURE EXTREME POVERTY IN THE EU Background and Objectives Brussels 22 September 2009

  2. Background • 2000 Lisbon Summit commitment to fight poverty and social exclusion using OMC. • Laeken indicators – Common indicators • Main indicator since 1975 relative income - % living in households below 60 per cent of the median • Other indicators introduced as a result of the work of the SPC

  3. EU indicators • At risk of poverty rate • At risk of poverty gap • An anchored poverty rate (anchored at a point in time) • A persistent at risk of poverty rate • Poverty rates at different thresholds and • Indicator based measures covering lack of durables, economic strain and low housing standards.

  4. Problems with the relative income poverty threshold • Hard for non specialists to understand • Very different levels of living in different countries (Poland=€3055, UK=€10,720 per annum for a one person household) • Problem enhanced by 10 and candidate countries • Other problems with reliability and validity of income measures • Indirect indicator • Thresholds are arbitrary • Equivalence scale contested

  5. Purpose of study • “The purpose of the study is to investigate and to discuss the feasibility of meaningful and agreeable concepts, definitions and operationalisations measuring extreme poverty at EU level.” • The Tender Specification calls for • A review of the thresholds in use in existing legislation/regulations • An overview of relevant statistical data on extreme poverty • A review of the international literature on measuring extreme poverty • A limited number of concepts, definitions and operationalisations should be suggested for the EU

  6. Tasks to be carried out • For all countries a list of legislative regulations in the area of extreme poverty and a typology if appropriate. • The latest official data on extreme poverty published by National Statistical Institutes and other research bodies including typologies, definitions, methods, data sources, periodicity and coverage. • Review and assess the research of international organisations most relevant for the region • Review the academic publications most relevant for the region. • Present and assess alternative measures of extreme poverty that might be used in the EU with estimations for selected countries of the extreme poverty rates.

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