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FIRST RELEASE |
CROATIAN BUREAU OF STATISTICS ISSN
1334-0565 |
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YEAR: XLVI. |
ZAGREB,
2 OCTOBER, 2009 |
NUMBER:
14.1.2. |
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OBLIGED TO NOTIFY DATA SOURCE |
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The poverty indicators for Republic of Croatia were calculated by using
data on the total net income of private households collected through the Household
Budget Survey (HBS). The indicators are based on a relative poverty concept
which takes into consideration disposable household income, number of household
members (household size) and the income distribution within the population.
The indicators were calculated for two definitions of
net income (Table 1) depending on whether the income includes both cash
earnings and benefits in kind (see Table 1, column “With income in kind”) or
cash earnings only (see Table 1, column “Without income in kind”), in order to
present the influence of benefits in kind on income and, consequently, on the
at-risk-of-poverty threshold and the at-risk-of-poverty rate.
The poverty
threshold is determined by calculating the equivalised income per household member for all households.
Afterwards, the middle value of the income distribution is determined (the
median) and 60% of the median is determined as the risk-of-poverty threshold.
Everyone with the income below the threshold is in a worse situation
than others, but they do not necessarily live in deprivation. The at-risk-of-poverty threshold is presented in
currencies, while the at-risk-of-poverty rate is presented in relative terms as
a percentage.
According to the income definition, which includes cash earnings and benefits in kind, the at-risk-of-poverty rate in Republic of Croatia in 2008 was 17.4%, the same as in the
previous year. The at-risk-of-poverty threshold at the annual level
amounted in 2008 to 24 311 kuna for a one-person
household and to 51 054 kuna for a household
consisting of two adults and two children.
The at-risk-of-poverty
rate, by age and sex, was in 2008 the highest for persons aged 65 years and
over. This rate was 34.4% for women and 26.2% for men. The lowest rate was for
persons aged from 25 to 49 years. This rate was 10.2% for men and 11.4% for
women.
1. POVERTY INDICATORS
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Income |
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Whit
income in kind |
Without
income in kind |
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|
2006. |
2007. |
2008. |
2006. |
2007. |
2008. |
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At-risk-of-poverty rate, % |
16,3 |
17,4 |
17,4 |
19,3 |
19,0 |
18,9 |
|
At-risk-of-poverty
threshold for one-person households, kuna |
22
196 |
23
969 |
24
311 |
20
926 |
22
311 |
23
327 |
|
At-risk-of-poverty threshold for
households |
46
611 |
50
336 |
51
054 |
43
945 |
46
853 |
48
987 |
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At-risk-of-poverty rate by age and sex, % |
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Men |
15,1 |
15,9 |
15,5 |
18,1 |
17,7 |
17,0 |
|
Women |
17,4 |
18,7 |
19,1 |
20,4 |
20,3 |
20,6 |
|
0 – 15 years |
13,8 |
15,4 |
15,4 |
17,2 |
16,3 |
17,1 |
|
Men |
14,1 |
14,9 |
15,0 |
17,5 |
15,7 |
16,7 |
|
Women |
13,5 |
16,0 |
15,8 |
16,9 |
17,0 |
17,5 |
|
16 – 24 years |
11,9 |
15,0 |
14,4 |
14,2 |
16,0 |
14,7 |
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Men |
12,6 |
14,2 |
13,7 |
15,7 |
16,1 |
14,2 |
|
Women |
11,1 |
15,9 |
15,2 |
12,7 |
15,9 |
15,2 |
|
25 – 49 years |
11,2 |
11,7 |
10,8 |
13,7 |
12,5 |
11,7 |
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Men |
11,2 |
11,5 |
10,2 |
13,7 |
12,8 |
11,1 |
|
Women |
11,3 |
11,9 |
11,4 |
13,7 |
12,3 |
12,4 |
|
50 – 64 years |
14,7 |
16,9 |
15,5 |
17,3 |
18,2 |
18,0 |
|
Men |
13,6 |
16,8 |
15,7 |
16,5 |
18,5 |
18,4 |
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Women |
15,6 |
17,0 |
15,4 |
18,0 |
18,0 |
17,7 |
|
65 years and over |
29,5 |
29,0 |
31,2 |
33,7 |
33,2 |
32,9 |
|
Men |
26,9 |
25,2 |
26,2 |
30,3 |
28,9 |
27,7 |
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Women |
31,3 |
31,4 |
34,4 |
35,9 |
36,0 |
36,3 |
1. POVERTY INDICATORS
(continued)
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Income |
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Whit
income in kind |
Without
income in kind |
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2006. |
2007. |
2008. |
2006. |
2007. |
2008. |
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At-risk-of-poverty rate, by most frequent activity |
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Employees |
2,8 |
4,1 |
3,7 |
4,2 |
4,2 |
4,1 |
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Men |
(3,3) |
5,0 |
4,8 |
5,2 |
5,2 |
5,5 |
|
Women |
(2,1) |
(3,1) |
(2,4) |
(2,8) |
(3,0) |
(2,3) |
|
Self-employed |
18,5 |
17,9 |
22,3 |
25,1 |
24,1 |
28,0 |
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Men |
18,6 |
18,6 |
20,4 |
24,8 |
25,5 |
25,8 |
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Women |
18,4 |
16,9 |
24,6 |
25,5 |
22,2 |
30,7 |
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Unemployed |
31,2 |
34,5 |
32,6 |
33,4 |
35,8 |
33,8 |
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Men |
34,6 |
42,8 |
39,3 |
36,0 |
43,7 |
40,4 |
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Women |
28,5 |
27,0 |
27,1 |
31,2 |
28,6 |
28,5 |
|
Retired |
22,7 |
22,8 |
23,4 |
25,4 |
24,8 |
24,7 |
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Men |
23,6 |
22,3 |
21,2 |
26,5 |
24,5 |
22,2 |
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Women |
22,1 |
23,1 |
25,1 |
24,6 |
25,1 |
26,6 |
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Other economically inactive |
24,9 |
28,2 |
26,1 |
29,1 |
30,7 |
27,3 |
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Men |
20,1 |
19,7 |
20,6 |
24,2 |
22,4 |
21,8 |
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Women |
27,3 |
32,4 |
29,1 |
31,6 |
34,9 |
30,3 |
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At-risk-of-poverty rate, by
household type and age, % |
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One-person household |
38,1 |
36,5 |
39,8 |
43,3 |
41,3 |
40,7 |
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Men |
34,0 |
27,9 |
31,1 |
39,5 |
33,6 |
31,7 |
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Women |
39,8 |
39,8 |
43,3 |
44,8 |
44,3 |
44,2 |
|
One-person household, 30 – 64 years |
29,0 |
28,2 |
28,0 |
35,0 |
30,8 |
30,3 |
|
Men |
(29,9) |
(26,6) |
(32,0) |
(36,0) |
(33,2) |
(34,8) |
|
Women |
(28,4) |
(29,4) |
(24,3) |
(34,3) |
(29,0) |
(26,3) |
|
One-person household, 65 years and
over |
43,8 |
41,5 |
47,8 |
48,7 |
47,5 |
48,0 |
|
Men |
(40,0) |
(30,5) |
(34,7) |
(45,7) |
(35,2) |
(32,5) |
|
Women |
44,8 |
44,1 |
50,5 |
49,5 |
50,5 |
51,3 |
|
Two adults, no dependent
children, both adults under 65 years |
13,6 |
17,7 |
16,4 |
14,9 |
18,8 |
19,1 |
|
Two adults, no dependent children, at
least one adult 65 years or over |
29,0 |
28,7 |
28,1 |
33,0 |
31,9 |
30,0 |
|
Other households with no
dependent children |
10,6 |
8,9 |
6,9 |
12,8 |
10,6 |
8,8 |
|
Single parent household, one or more
dependent children |
32,9 |
(26,0) |
40,4 |
35,6 |
(23,6) |
38,6 |
|
Two adults, one dependent child |
11,7 |
11,2 |
10,7 |
13,0 |
12,6 |
10,7 |
|
Two adults, two dependent children |
8,2 |
10,1 |
12,8 |
10,2 |
10,3 |
12,9 |
|
Two adults, three or more dependent
children |
24,5 |
25,9 |
18,9 |
28,7 |
27,7 |
19,5 |
|
Other households with dependent
children |
8,0 |
12,3 |
11,6 |
11,6 |
13,3 |
14,5 |
|
At-risk-of-poverty rate by tenure
status, % |
|
|
|
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|
|
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Tenant |
19,3 |
21,4 |
20,9 |
19,7 |
18,2 |
17,5 |
|
Owner or rent free |
16,2 |
17,2 |
17,2 |
19,3 |
19,1 |
18,9 |
|
Inequality of income distribution – quintile
share ratio (S80/S20) |
4,2 |
4,3 |
4,6 |
4,8 |
4,9 |
4,9 |
|
Gini coefficient |
0,28 |
0,28 |
0,29 |
0,29 |
0,30 |
0,30 |
|
Relative at-risk-of-poverty gap, % |
22,5 |
21,9 |
24,9 |
26,4 |
24,9 |
25,4 |
|
Dispersion around the at-risk-of-poverty
threshold |
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|
40% cut off |
5,1 |
5,2 |
6,4 |
7,1 |
7,2 |
7,8 |
|
50% cut off |
10,4 |
10,5 |
11,3 |
12,8 |
12,6 |
13,1 |
|
70% cut off |
24,2 |
24,0 |
25,4 |
27,2 |
26,3 |
26,2 |
|
At-risk-of-poverty
threshold before social transfers, % |
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Social transfers excluded from income |
24,1 |
24,3 |
25,5 |
27,2 |
26,3 |
26,7 |
|
Pensions and social transfers
excluded from income |
41,8 |
41,6 |
43,1 |
44,4 |
43,4 |
44,4 |
The at-risk-of-poverty
rate, by the most frequent activity status, was calculated according to the
primary (main) activity status of persons aged 15 years and over. In 2008, it was
the highest for unemployed persons, 32.6%, other economically inactive persons,
26.1% and for retired persons, 23.4%.
The at-risk-of-poverty
rate, according to a household type, was the highest in all
observed years for one-person households, particularly for households of
persons aged 65 years and over, and in 2008 it amounted to 47.8%. The second
highest poverty rate according to a household type was registered in single
parent households with one or more dependent children, which amounted to 40.4% in
2008.
The quintile
share ratio (S80/S20) is an indicator of income inequality
and it measures changes in the top and bottom quintiles. It represents the
ratio between the total equivalised income of the 20%
of population with the highest income and the 20% of population with the lowest
income. This ratio reached 4.6 in 2008.
Gini
coefficient, as a measure of income inequality, takes into
consideration the total distribution of income and in 2008 it was 0.29. Its
value ranges between 0 and 1. If there was a perfect equality, that is, if each
person received the same income, the Gini coefficient
would be 0. The higher it is the greater the income inequality is.
In order to examine
the at-risk-of-poverty sensitivity and to determine alternative thresholds,
three different thresholds have been considered, as follows: 40%, 50% and 70% equivalised income medians – an indicator of the dispersion
around the at-risk-of-poverty threshold. Thus, the likelihood for a person
of being at the risk of poverty varied in 2008 from 6.4% to 25.4% for
thresholds set at 40% and 70% of the median respectively. It is 11.3% if a 50%
cut off is taken into account.
At-risk-of-poverty
rate before social transfers is calculated by excluding social
transfers from the total income. This indicator should be used in connection
with the standard at-risk-of-poverty rate in order to evaluate the impact of
social transfers. A comparison between the standard at-risk-of-poverty rate,
17.4%, and a hypothetical situation where social transfers are absent shows
that such transfers have an important redistributive effect that helps in
reducing the number of people who are at the risk of poverty. The poverty risk
is extremely high and, in the absence of all social transfers and pensions, in
2008 it reached 43.1%. If pensions are considered as a primary income rather
than a form of a social transfer, the at-risk-of-poverty rate without social
transfers was 25.5%.
Table 2. shows
a few base indicators for the EU countries for 2007, which were calculated
according to the net income definition, which includes only cash earnings.
Those indicators were calculated on the basis of data collected for the
Statistics on Income and Living Conditions survey (EU-SILC). This Survey is a
basic data source for calculations of poverty indicators, income distribution,
social exclusion and deprivation for the EU countries. The EU-SILC survey
significantly methodologically differs (in purpose, survey contents, sample
design, reference periods etc.) from the HBS that was used for the calculation
of poverty indicators for the Republic of Croatia (table 1). Furthermore, the
set of indicators calculated from the EU-SILC survey data is much broader then
the one calculated from the HBS data.
2. POVERTY
INDICATORS FOR EU COUNTRIES1), 2007
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At-risk-of-poverty |
Quintile
share ratio |
Gini coefficient |
At-risk-of-poverty
rate, |
At-risk-of-poverty
rate, pensions and social |
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EU 27 |
17 |
5,0 |
0,31 |
26 |
43 |
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Austria |
12 |
3,8 |
0,26 |
25 |
43 |
|
Belgium |
15 |
3,9 |
0,26 |
28 |
42 |
|
Bulgaria |
22 |
6,9 |
0,35 |
26 |
42 |
|
Cyprus |
16 |
4,5 |
0,30 |
21 |
28 |
|
Czech Republic |
10 |
3,5 |
0,25 |
20 |
38 |
|
Denmark |
12 |
3,7 |
0,25 |
27 |
37 |
|
Estonia |
19 |
5,5 |
0,33 |
25 |
37 |
|
Finland |
13 |
3,7 |
0,26 |
29 |
41 |
|
France |
13 |
3,8 |
0,26 |
26 |
46 |
|
Greece |
20 |
6,0 |
0,34 |
24 |
42 |
|
Ireland |
18 |
4,8 |
0,31 |
33 |
40 |
|
Italy |
20 |
5,5 |
0,32 |
24 |
43 |
2. POVERTY
INDICATORS FOR EU COUNTRIES1), 2007
(continued)
|
|
At-risk-of-poverty |
Quintile
share ratio |
Gini coefficient |
At-risk-of-poverty
rate, |
At-risk-of-poverty
rate, pensions and social |
|
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Latvia |
21 |
6,3 |
0,35 |
27 |
39 |
|
Lithuania |
19 |
5,9 |
0,34 |
26 |
38 |
|
Luxembourg |
14 |
4,0 |
0,27 |
23 |
39 |
|
Hungary |
12 |
3,7 |
0,26 |
29 |
49 |
|
Malta |
14 |
3,8 |
0,26 |
22 |
34 |
|
Netherlands |
10 |
4,0 |
0,28 |
21 |
35 |
|
Germany |
15 |
5,0 |
0,30 |
25 |
43 |
|
Poland |
17 |
5,3 |
0,32 |
27 |
47 |
|
Portugal |
18 |
6,5 |
0,37 |
24 |
40 |
|
Romania |
25 |
7,8 |
0,38 |
31 |
46 |
|
Slovenia |
12 |
3,3 |
0,23 |
23 |
40 |
|
Slovakia |
11 |
3,5 |
0,24 |
18 |
38 |
|
Spain |
20 |
5,3 |
0,31 |
24 |
39 |
|
Sweden |
11 |
3,4 |
0,23 |
28 |
42 |
|
United Kingdom |
19 |
5,5 |
0,33 |
30 |
42 |
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CROATIA2) |
19 |
4,9 |
0,30 |
26 |
43 |
Source: Eurostat - Income, Social Inclusion and
Living Conditions
1)
The EU-SILC2007 survey is a data source for the calculation of indicators for
EU countries.
2)
In order to enable their comparison with EU countries, indicators for the
Republic of Croatia, calculated from the HBS data, are also presented here. It
should be noticed that indicators are not fully comparable due to
methodological differences in data sources.
NOTES ON
METHODOLOGY
The data source
The poverty indicators for Republic of Croatia were calculated by using
data on total net income of a household and all household members collected
through the Household Budget Survey (HBS). The Survey
was carried out on the random sample of private households in such a way that
the sample was separately defined for each year (2006, 2007 and 2008), that is, there was not a panel part of the
sample (households were not repeatedly interviewed every year).
Definitions
The Eurostat methodology and definitions applied in calculation
of indicators for Republic of Croatia are adjusted to the national data source (HBS).
The indicators were calculated for two
definitions of net income depending on whether the income includes both cash
earnings and benefits in kind or cash earnings only in order to present the
influence of benefits in kind on income. Benefits in kind consist of value of goods and
services produced in own business or craft and consumed or used in own
household, income from work carried out for benefits in kind and other benefits
in kind.
Total income of household
is the total net income received by household and all its members. It includes
income from paid employment, income from self-employment, property income,
pensions, social transfers and other receipts received from persons who are not
household members.
Income from paid employment
includes all net incomes from employment in Republic of Croatia and abroad,
refund for holidays, remuneration for meals, refund for transport costs,
remuneration for living separately, jubilee and other rewards, special rewards
in cash or kind and income from student’s or pupil’s work through student or
pupil employment agency.
Income from self-employment
includes the income earned from own craft, firm, free-lance, agricultural
property, author’s fees, occasional and temporary work, income in cash or kind
obtained through the direct deal, income from leasing of business premises
and movables as well as goods and services produced in own production and
consumed or used in own household.
Income from property includes
income from royalties from patents and author’s property, income from interests
on savings deposits, income from bonds and other securities, income from
letting flat, house, weekend/summer house, garage and rooms and income from
leasing of land.
Pensions include remuneration for
old age pensions from the Republic of Croatia or abroad.
Social transfers include
remunerations related to unemployment and retaining, dismissal contributions
and severance pays due to continuous problem of surplus workers, family
pensions, income related to family (child allowance, maternity leave benefits,
layette assistance), compensation for sick leave, compensation for bodily
impairments, rehabilitation allowances, disability pensions, refunds of housing
ixpenditures from other persons, social welfare
receipts, scholarships and scholastic awards and grants.
Other receipts include
received alimonies, income tax repayment received (based on income tax
application form) and received free gifts in cash from Republic of Croatia or
abroad from persons who are not household members.
Household
is every family or other community of individuals who live together and
spend their income together for meeting the basic existential needs
(accommodation, food and so on). Household is every person who lives alone, as
well (one-person household).
At-risk-of-poverty rate is a
percentage of persons with the equivalised total
disposable income below the at-risk-of-poverty threshold.
The
at-risk-of-poverty threshold is defined at
60% of the central value of the income distribution. In this case the central
value is a median, which is selected as a statistical measure. The threshold is
calculated for the population as a whole and is expressed in the terms of the equivalised income taking into account the size and content
of a household.
Equivalised income is calculated in a way
that the total household income is divided by equivalised
household size according to the modified OECD scale, in which the household
head is given coefficient 1, every other adult aged 15 and over is given
coefficient 0.5 and every child under 15 years of age is given coefficient 0.3.
This procedure is applied in order to allot equal share to each member with
respect to joint earnings.
Relative at-risk-of-poverty
gap is a difference between the at-risk-of-poverty threshold and equivalised income median of persons below the
at-risk-of-poverty threshold, expressed as a percentage of the
at-risk-of-poverty threshold.
Abbreviations
HBS
Household Budget Survey
EU
European Union
OECD Organization for
Economic Co-operation and Development
SILC Statistics
on Income and Living Conditions
Symbols
(
) insufficiently reliable estimate