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The Evolution of Poverty in the European Union: Concepts, Measurement and Data

Author

Listed:
  • Koen Decancq
  • Tim Goedemé
  • Karel Van den Bosch
  • Josefine Vanhille

Abstract

This paper considers the measurement of poverty in the European Union (EU). Starting from a definition of poverty that is suitable for the European context, a flexible measurement framework is proposed based on the Foster-Greer-Thorbecke class of poverty measures. Three key issues need to be addressed in the measurement of poverty. First, one has to determine the appropriate metric of individual well-being. Second, a cut-off value or threshold needs to be established under which persons are considered to be poor. Third, it is necessary to outline an aggregation procedure to attain a poverty figure for society as a whole. In what follows, we discuss the different answers that are implicit in the poverty measures applied in this book* and the EU’s social strategy. The EU Statistics on Income and Living Conditions (EU-SILC) are introduced as the main data source for poverty analysis in the EU. Finally, an illustration is provided of how the different conceptual choices in the measurement of poverty affect the empirical findings regarding the evolution of poverty between 2005 and 2009. It turns out that the selection of individual well-being metric and the choice between a county-specific and a pan-European poverty line strongly affect observed patterns of poverty in the EU. * Cantillon, B. and Vandenbroucke, F. (eds.), For Better For Worse, For Richer For Poorer. Labour market participation, social redistribution and income poverty in the EU. Oxford: Oxford University Press (forthcoming).

Suggested Citation

  • Koen Decancq & Tim Goedemé & Karel Van den Bosch & Josefine Vanhille, 2013. "The Evolution of Poverty in the European Union: Concepts, Measurement and Data," ImPRovE Working Papers 13/01, Herman Deleeck Centre for Social Policy, University of Antwerp.
    • Handle: RePEc:hdl:improv:1301
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    Citations

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    Cited by:

    1. David Madden, 2015. "The Poverty Effects Of A ‘Fat‐Tax’ In Ireland," Health Economics, John Wiley & Sons, Ltd., vol. 24(1), pages 104-121, January.
    2. Anna B. Kis & András Gábos, 2015. "Consistent poverty across the EU," ImPRovE Working Papers 15/22, Herman Deleeck Centre for Social Policy, University of Antwerp.
    3. Martina Mysíková & Tomáš Želinský & Thesia I. Garner & Kamila Fialová, 2022. "Subjective equivalence scales in Eastern versus Western European countries," Contemporary Economic Policy, Western Economic Association International, vol. 40(4), pages 659-676, October.
    4. Bea Cantillon, 2012. "GINI DP 52: Virtuous Cycles or Vicious Circles? The Need for an EU Agenda on Protection, Social Distribution and Investment," GINI Discussion Papers 52, AIAS, Amsterdam Institute for Advanced Labour Studies.
    5. Brunori, Paolo & Ferreira, Francisco & Lugo, Maria Ana & Peragine, Vito, 2013. "Opportunity-sensitive poverty measurement," Policy Research Working Paper Series 6728, The World Bank.
    6. Irene Cussó-Parcerisas & Elena Carrillo Álvarez & Jordi Riera-Romaní, 2018. "What is the Minimum Budget for an Adequate Social Participation in Spain? An Estimate Through the Reference Budgets Approach," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 11(1), pages 263-290, February.
    7. repec:agr:journl:v:4(621):y:2019:i:4(621):p:163-180 is not listed on IDEAS
    8. Wim Van Lancker & Natascha Van Mechelen, 2014. "Universalism under siege? Exploring the association between targeting, child benefits and child poverty across 26 countries," Working Papers 1401, Herman Deleeck Centre for Social Policy, University of Antwerp.
    9. Tim Goedemé & Karel Van den Bosch & Lina Salanauskaite & Gerlinde Verbist, 2013. "Testing the Statistical Significance of Microsimulation Results: A Plea," International Journal of Microsimulation, International Microsimulation Association, vol. 6(3), pages 50-77.
    10. Márton Medgyesi, 2014. "Components of income inequality and its change in EU countries, 2004-2010," ImPRovE Working Papers 14/01, Herman Deleeck Centre for Social Policy, University of Antwerp.
    11. Martina Mysíková & Tomáš Želinský & Thesia I. Garner & Jiří Večerník, 2019. "Subjective Perceptions of Poverty and Objective Economic Conditions: Czechia and Slovakia a Quarter Century After the Dissolution of Czechoslovakia," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(2), pages 523-550, September.
    12. Notten, G, 2013. "Measuring performance : does the assessment depend on the poverty proxy?," MERIT Working Papers 2013-031, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    13. Bea Cantillon & Zachary Parolin & Diego Collado, 2018. "Rising Inequalities and Welfare Generosity: Structural Constraints on the Adequacy of Minimum Incomes in European and American Welfare States," Working Papers 1809, Herman Deleeck Centre for Social Policy, University of Antwerp.
    14. Martina Mysíková & Tomáš Želinský & Michaela Jirková & Jiří Večerník, 2021. "Equivalence Scale and Income Poverty: Two Approaches to Estimate Country-specific Scale for the Czech Republic," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 156(1), pages 21-45, July.
    15. Maria-Daniela TUDORACHE, 2019. "Poverty rate determinants in the Central and Eastern Europe member states," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(621), W), pages 163-180, Winter.
    16. Verbist, Gerlinde & Goedemé, Tim & Van den Bosch, Karel & Salanauskaite, Lina, 2013. "Testing the statistical significance of microsimulation results: often easier than you think. A technical note," EUROMOD Working Papers EM18/13, EUROMOD at the Institute for Social and Economic Research.
    17. Iwona Bak & Joanna Perzynska, 2021. "Poverty and Social Exclusion in the Context of the Implementation of the Sustainable Development Goals," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 68-83.
    18. Petr Janský & Klára Kalíšková & Daniel Münich, 2016. "Does the Czech Tax and Benefit System Contribute to One of Europe’s Lowest Levels of Relative Income Poverty and Inequality?," Eastern European Economics, Taylor & Francis Journals, vol. 54(3), pages 191-207, May.
    19. Sara Mota Cardoso & Aurora A. C. Teixeira, 2020. "The Focus on Poverty in the Most Influential Journals in Economics: A Bibliometric Analysis of the “Blue Ribbon” Journals," Poverty & Public Policy, John Wiley & Sons, vol. 12(1), pages 10-42, March.
    20. Geranda Notten, 2016. "How Poverty Indicators Confound Poverty Reduction Evaluations: The Targeting Performance of Income Transfers in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(3), pages 1039-1056, July.

    More about this item

    Keywords

    Europe; Poverty; FGT; EU-wide poverty; Concept; measurement; EU-SILC; top-bottom coding;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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