Population at risk of poverty rate is defined as share of persons with an equivalised disposable income below national poverty line, i.e. below 60% of the national median equivalised disposable income.
Income inequality is defined as the income quintile share ratio S80/S20, which is the ratio of total income received by the 20% of the country's population with the highest income (top quintile) to that received by the 20% of the country's population with the lowest income (lowest quintile). Income is understood as equivalised disposable income.
1i) Population at risk of poverty rate is calculated as the percentage of persons in the total population with an equivalised disposable income below the ‘national poverty line' (i.e. below 60% of the national median equivalised disposable income) over the total population. Total population is all persons living in private household on the national territory. Personal equivalised income is obtained by dividing the total household disposable income by the equivalised size of the household, using modified OECD scale: 1 for the first person aged 14 or more; 0.5 for any subsequent person aged 14 or more; and 0.3 for persons aged less then 14.
1ii) Children in poverty: 0-17 year olds; precise operationalisation of how to derive the indictor from EU-SILC to be formulated.
2) Income inequality is calculated as the ratio of the sum of equivalised disposable income received by the 20% of the country’s population with the highest equivalised disposable income (top inter-quintile interval) to that received by the 20% of the country’s population with the lowest equivalised disposable income (lowest inter-quintile interval).
Equivalised income takes account of the size and composition of the household, and is attributed to each household member (including children).
Related concepts are: “At-persistent-risk-of-poverty rate” and “Any time at-risk-of poverty”
Disposable income can be calculated before social transfers (original income including pensions but excluding all other social transfers) and after social transfers (total income).
Important indicator for social cohesion to be taken into consideration when analysing health and socio-economic differences in health. Children are especially vulnerable. “Population at risk of poverty” and “Income inequality” are EU structural indicators and are considered as overarching indicators for OMC for social inclusion, health and pension.
Eurostat: good availability with various definitions and breakdowns (gender, type of household, age, occupational status, before and after social transfer).
For EU comparability, the Eurostat EU-SILC data will most likely be the best source from 2005 onwards. During transition to data collection under EU-SILC regulation for all EU25 member states, data is obtained from a mixture of sources. In consequence, country coverage, and available time series are incomplete. Due to differences in the underlying sources the estimates cannot be considered to be fully comparable neither with each others, nor with previously published data. (Eurostat note).
“Children in poverty” can be derived from the same data source as for all adults (SILC).
Not available at WHO or OECD database.
Also indicators “At-persistent-risk-of-poverty”and “Any time at-risk-of poverty” are presented on the DG Sanco Website and will be available from EU-SILC starting 2008 (reference year).
Definition of indicator
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What the indicator is meant to measure. If not unambiguous, all acceptable alternatives are to be listed in numbered preference order. The final decision on preference order/numbering is to be made by ECHIM coregroup.
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How to calculate the indicator (method, numerator, denominator, etc), in the same preference order as above if more than one alternative.
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Why the indicator is measured the chosen way (prevalence, incidence, mortality, absolute numbers etc.)? Also reasons for the preferred definition and calculation details can be included here.
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Should the indicator be stratified by e.g. age, gender, socio-economic status and area
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The type of data source; in the same preference order as above (typically either register data or HIS/HES).
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Why is this indicator important, from the public health point of view. (For example: size or dynamics of the problem/issue, evidence of the relevance of the issue in public health terms (for determinants) or evidence of intervention effectiveness (for prevention or care issues)).
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The recommended data source (e.g. Eurostat, OECD, WHO, national registers or HIS/HES, project databases etc.), in the same preference order as above; some notes on the quality and availability of the data for the indicator. Eventually, also information on the availability in coutries, as derived from the ECHIM survey.
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References to original publications, websites, EHIS-question/naire, PHP projects, etc.
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What should be done to improve and complete this sheet. Eventually, this cell should be blank.
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