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Eurostat methodology for gathering statistics on persons at risk of poverty or social exclusion

Question écrite de Mme Michaela ŠOJDROVÁ - Commission européenne

Question de Mme Michaela ŠOJDROVÁ,

Diffusée le 30 juillet 2018

Subject: Eurostat methodology for gathering statistics on persons at risk of poverty or social exclusion

According to Eurostat statistics comparing the risk of poverty or social exclusion for citizens, the Czech Republic ranks the most highly – its citizens are least likely to fall into poverty than all other EU citizens. Experts warn that the statistics are unreliable, however, as they are based solely on the income of the persons considered and do not take account of losses caused by enforcement or insolvency proceedings.

Given the importance of poverty risk as a social indicator, the statistics should be based only on the money a person actually has access to and can spend on their life needs. There is no doubt that this change of methodology would significantly alter the results of the comparative study. In this context, I would like to ask the Commission the following questions:

1. Will it consider changing the methodology for calculating the risk of poverty or social exclusion so that it takes account only of the portion of a person’s income that the person in question can actually use?

2. In the Commission’s view, how relevant is the existing methodology, in the light of the conclusions drawn from it?

3. In what way, and in which of its areas of activity, does the Commission use the statistics yielded by the current methodology?

Réponse - Commission européenne

Diffusée le 27 septembre 2018

Answer given by Ms Thyssen on behalf of the European Commission

(28 September 2018)

The indicator ‘at-risk-of-poverty or social exclusion’ is derived from the European Union Statistics on Income and Living Conditions (EU-SILC), a sample survey of private households with every year more than 250 000 households and around 500 000 individuals interviewed across Europe.

The indicator follows a multidimensional approach corresponding to the percentage of persons who are: at-risk-of-poverty (monetary) or severely materially deprived or living in households with very low work intensity (1).

Concerning the at-risk-of-poverty sub-indicator, which measures the proportion of persons whose household has an equivalised disposable income below the risk-of-poverty threshold, the income taken into account is calculated according to the United Nations international standards (2), allowing comparability at EU and international level.

According to those standards, deductions for executions and insolvencies are not mentioned as to be considered in the income definition.

The lower living standard caused by such deductions is captured by the material deprivation dimension of the indicator. Strong cuts in the final resources available impact the capacity of the household to afford the items considered in the severe deprivation sub- indicator.

The multidimensionality of the ‘at-risk-of-poverty or social exclusion’ indicator makes it relevant for its current use in measuring the different aspects of poverty, e.g., with the Member States via the Joint Assessment Framework and by the Commission in the Country Reports of the European Semester.

It is a headline indicator in the Europe 2020 strategy and in the Social Scoreboard accompanying the European Pillar of Social Rights. The Commission does not plan to change this methodology.

⋅1∙ Definition of the concerned statistical indicators: http://ec.europa.eu/eurostat/cache/metadata/en/sdg_01_10_esmsip2.htm

⋅2∙ Canberra Group Handbook on Household Income Statistics — Second Edition, 2011: www.unece.org/index.php?id=28894



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