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S t a t i s t i c a l b o o k s

Edited by Anthony B. Atkinson and Eric Marlier

Income and living conditions in Europe

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S t a t i s t i c a l b o o k s

Edited by Anthony B. Atkinson and Eric Marlier

Income and living conditions in Europe

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Europe Direct is a service to help you fnd answers

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Luxembourg: Publications Ofce o the European Union, 2010

ISBN 978-92-79-16351-7

doi:10.2785/53320

Cat. No KS-31-10- -EN-C

Theme: Population and social conditions

Collection: Statistical books

European Union, 2010

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Income and living conditions in Europeerostat 3

oreword

T Euopan Commission attacs utmost impotanc to tacklingpoblms o povty and xclusion and dvloping policis tagtingt most disadvantagd o ou citizns. On o t adlin tagtsin t Euop 2020 Statgy o Jobs and Gowt is pomoting socialinclusion, in paticula toug t duction o povty, by aimingto duc t numb o popl at isk o povty and xcludd omull paticipation in wok and socity. T Platom Against Povtyund t Euop 2020 Statgy will bing togt Euopan actiono vulnabl goups suc as cildn and old popl. Last but notlast, 2010 as bn t Euopan Ya o Combating Povty andSocial Exclusion. W must mak su tat t most vulnabl anot l bind.

T publication tat you av in ont o you is an intgal pat o tis political agnda. T socialindicatos a ssntial to monito pogss towads ou common goals. Ty play a ky ol in sapingou conomic and social policis. W nd liabl data o a ig quality statistical analysis. Givntat social wllbing as many dimnsions and its masumnt gos wll byond t lvl o GDP,t impovmnt o t quality o statistics and ti covag is vn mo impotant.

T publication is a signicant contibution as it xplos t nw landscap o EU tagts and timplications o monitoing at EU and national lvls. T Euop 2020 agnda, in stting a socialinclusion tagt, as igligtd t dimnsions o povty and xclusion. It is also ssntial,owv, tat Mmb Stats and t EU as a wol continu to monito pomanc accodingto t ull st o commonly agd social indicatos undpinning EU coodination and coopationin t social ld.

Incom and Living Conditions in Euop is t sult o t wok o a Ntwok stablisd by Euostato statisticians sponsibl o poducing statistics and sacs wo us ts data, wic ocusson t contibution o t EU Statistics on Incom and Living Conditions EUSILC. T book,to, is not just o policymaks, no just o statisticians. It will intst all tos concndwit t social dimnsion o Euop. T ad will lan about ow t citizns o Euop an tiliving, about ti living aangmnts, ti social paticipation, and about t ways in wic tiincoms a actd by taxs and tanss. T book givs a cla pictu o many social poblmscononting Euop and o t distibutional cts o social and labou policis.

T succss o Euop 2020 wit a tuly social dimnsion will dpnd on al ownsip at tEuopan, national and local lvls. Figting povty is a sad sponsibility on w vyonas a ol to play. Poviding a btt undstanding o ts issus is a conct stp tat will lp tCommission and Mmb Stat govnmnts to aciv ti objctivs.

Jos Manul Baoso

Psidnt o t Euopan Commission

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Income and living conditions in Europe erostat4

1 ttp://www.stat.gov.pl/usilc/indx.tm .

EUROSTAT

L-2920 Luxembourg Tel. (352) 43 01-1 website http://ec.europa.eu/eurostat

Euostat is t Statistical Oc o t Euopan Communitis. Its mission is to povid t EuopanUnion wit igquality statistical inomation. Fo tat pupos, it gats and analyss gus omt national statistical ocs acoss Euop and povids compaabl and amonisd data o tEuopan Union to us in t dnition, implmntation and analysis o Community policis. Itsstatistical poducts and svics a also o gat valu to Euops businss community, possionaloganisations, acadmics, libaians, NGOs, t mdia and citizns.

Euostats publications pogamm consists o sval collctions:

News releases povid cnt inomation on t EuoIndicatos and on social, conomic, gional,agicultual o nvionmntal topics.

Statistical books a lag A4 publications wit statistical data and analysis.

Pocketbooks a o cag publications aiming to giv uss a st o basic gus on a spcictopic.

Statistics in ocus povids updatd summais o t main sults o suvys, studis and statisticalanalysis.

Data in ocus psnt t most cnt statistics wit mtodological nots.

Methodologies and working papers a tcnical publications o statistical xpts woking in apaticula ld.

Euostat publications can b odd via t EU Booksop at ttp://booksop.uopa.u.

All publications a also downloadabl o cag in PDF omat om t Euostat wbsitttp://c.uopa.u/uostat . Futmo, Euostats databass a ly availabl t, as a tablswit t most quntly usd and dmandd sotand longtm indicatos.

Euostat as st up wit t mmbs o t Euopan statistical systm ESS a ntwok o us

suppot cnts wic xist in naly all Mmb Stats as wll as in som EFA countis. Timission is to povid lp and guidanc to Intnt uss o Euopan statistical data. Contact dtailso tis suppot ntwok can b ound on Euostat Intnt sit.
http://www.stat.gov.pl/eusilc/index.htmhttp://bookshop.europa.eu/http://ec.europa.eu/eurostathttp://ec.europa.eu/eurostathttp://bookshop.europa.eu/http://www.stat.gov.pl/eusilc/index.htm

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Acknowledgements by editors

T Network or the Analysis o EU-SILC (Net-SILC) was an ambitious 18patn Ntwok bingingtogt xptis om bot data poducs dictly involvd in t collction o EUSILC dataand data uss. It was stablisd in spons to a call o applications by t Statistical Oc o tEuopan Union Euostat in 2008. W would lik to tank Euostat not only o unding NtSILCbut also o ti vy activ and cint suppot tougout t pojct. W would also lik to giva paticula wod o tanks to Gaa Rojas Gonzlz and Pascal Wol o ti impotant assistanc int nal diting o tis book. Ti dtaild commnts and suggstions av bn xtmly usul.

Tis book psnts a majo output om t Ntwok o t Analysis o EUSILC NtSILC.Howv, not all o t scintic wok poducd by t Ntwok could b includd in it. Mo tcnicalmatial, and t output om t mo mtodological NtSILC wok packags, a availabl in tsis Eurostat methodologies and working papers. W wis to tank all t NtSILC mmbs andt institutions ty blong to o ti contibution to t pojct o a list o NtSILC mmbs,s Appndix 1.

T initial NtSILC ndings w psntd at t intnational connc on Comparative EUStatistics on Income and Living Conditions Wasaw, 2526 Mac 2010 1 wic was oganisd

jointly by Euostat and t NtSILC ntwok. W would lik to tank t Cntal Statistical Oc oPoland o kindly osting t vnt. Spcial tanks also go to Olympia Bov, Concita DAmbosio,And Dcost, Stpn Jnkins, Jon Micklwigt and Bian Nolan o discussing so toouglyt paps at t connc and also o guiding us in ou ditoial dcisions latd to tis book. Bottis book and t NtSILC Woking Paps publisd by Euostat av bntd om ti input.

Isabll Bouvy and Bgoa Lvics av povidd invaluabl sctaial and bibliogapical lp.

It sould b stssd tat t book dos not psnt in any way t viws o Euostat, t EuopanCommission o t Euopan Union. It also dos not psnt in any way t viws o t psonsand bodis tankd abov. All t autos av wittn in a stictly psonal capacity, not aspsntativs o any Govnmnt o ocial body. Tus ty av bn to xpss ti own

viws and to tak ull sponsibility o t judgmnts mad about past and cunt policy and o tcommndations o utu policy.

A.B. Atkinson Nuld Collg and London Scool o Economics, Unitd Kingdom

E. Mali CEPS/INSEAD Rsac Institut, Luxmboug

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Table o Contents

Fowod ............................................................................................................................................................3

Acknowldgmnts by ditos ........................................................................................................................5abl o Contnts ..............................................................................................................................................7List o tabls, gus and boxs ....................................................................................................................15

Living conditions in Euop and t1. Euop 2020 agndaAntony B. Atkinson and Eic Mali ............................................................................................211.1 Intoduction .....................................................................................................................................221.2 Outlin o t contnts ...................................................................................................................231.3 Summay o main lssons o EUSILC .......................................................................................281.4 EUSILC in t nw landscap o EU tagts ..............................................................................30

1.4.1 Implications o monitoing at EU lvl.........................................................................311.4.2 Implications o EU social indicatos .............................................................................321.4.3 Implications o monitoing at Mmb Stat lvl ......................................................331.4.4 An EU minimum incom o cildn ...........................................................................33

Rncs ...............................................................................................................................................34

Invsting in statistics:2. EU-SILC(Pascal Wol, Fabinn Montaign and Gaa Rojas Gonzlz) ......................................................372.1 Intoduction .....................................................................................................................................38

2.1.1 A bi istoy ....................................................................................................................382.1.2 Policy contxt .....................................................................................................................38

2.2 T EUSILC instumnt and its govnanc ..............................................................................402.2.1 Scop and gogapical covag ....................................................................................402.2.2 Main caactistics o EUSILC ....................................................................................402.2.3 Lgal basis ..........................................................................................................................412.2.4 Common guidlins ..........................................................................................................41

2.3 Mtodological amwok ............................................................................................................422.3.1 Contnts o EUSILC ........................................................................................................422.3.2 Incom concpt .................................................................................................................422.3.3 Sampl quimnts ........................................................................................................442.3.4 acing uls ......................................................................................................................46

2.4 Inomation on quality ....................................................................................................................46

2.4.1 Som compaability issus ...............................................................................................462.4.2 Quality pots ...................................................................................................................51

2.5 Data and indicatos .........................................................................................................................522.5.1 Data accss .........................................................................................................................522.5.2 Indicatos computation ....................................................................................................52

2.6 T way owad ..............................................................................................................................532.6.1 Impovmnt o timlinss and gogapical covag ..............................................532.6.2 Mtodological and data impovmnts .......................................................................532.6.3 Conc wit ot soucs .........................................................................................542.6.4 Data linking .......................................................................................................................542.6.5 Rvision o t EUSILC lgal basis ..............................................................................55

Rncs ...............................................................................................................................................55

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Data accuacy in3. EUSILC (Vijay Vma and Gianni Btti ...........................................................573.1 Intoduction: a dsciption o os in suvy data ...................................................................58

3.1.1 A typology o os ..........................................................................................................583.1.2 Eos in masumnt .....................................................................................................583.1.3 Eos in stimation ..........................................................................................................593.1.4 Itm nonspons ...........................................................................................................613.1.5 Compaability ....................................................................................................................61

3.2 Concptual and masumnt os ............................................................................................623.2.1 Rpoting o ngativ and zo valus o incom componnts .................................623.2.2 otal ousold goss and disposabl incom HY010, HY020 ...............................623.2.3 otal ousold disposabl incom

bo social tanss HY022, HY023 .........................................................................643.2.4 T impotanc o uniom pocdus o aciving compaability ........................65

3.3 Nonspons in EUSILC .............................................................................................................66

3.3.1 A amwok ......................................................................................................................663.3.2 Unit nonspons.............................................................................................................673.3.3 Witinousold patial unit nonspons ...........................................................683.3.4 Itm nonspons ............................................................................................................69

3.4 Sampling o .................................................................................................................................713.4.1 Jackkni Rpatd Rplication JRR o vaianc stimation ...................................713.4.2 Dning sampl stuctu: computational stata and PSUs ......................................723.4.3 Analysis o dsign cts in EUSILC ............................................................................733.4.4 Illustativ stimats o vaianc and o dsign ct and its componnts ...............75

3.5 Concluding maks .......................................................................................................................753.5.1 Divs soucs o nonsampling os in EUSILC ...................................................75

3.5.2 Impoving t potntial o assssmnt o data quality in EUSILC ..........................76Rncs ...............................................................................................................................................77

Housold stuctu in t EU4. Maia Iacovou and Alxanda Skw ..........................................794.1 Intoduction .....................................................................................................................................80

4.1.1 Countis and goups o countis .................................................................................814.2 Mtodology ....................................................................................................................................82

4.2.1 Dning lationsips btwn individuals ..................................................................824.2.2 Statistical analysis ..............................................................................................................82

4.3 Housold composition..................................................................................................................834.4 Cildn ............................................................................................................................................85

4.5 Young adults .....................................................................................................................................884.6 Patnsips: coabitationand maiag ......................................................................................894.7 Old popl .....................................................................................................................................924.8 Syntsising t dincs: acto analysis ................................................................................944.9 Conclusions ......................................................................................................................................97Rncs ...............................................................................................................................................98

Incom povty and incom inquality5. Antony B. Atkinson, Eic Mali,Fabinn Montaign and Ann Rinstadl ...................................................................................1015.1 Intoduction ...................................................................................................................................102

5.1.1 Aim o tis capt ..........................................................................................................1025.1.2 Rol o EUSILC ..............................................................................................................102

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5.2 Incom povty/inquality acoss countis and compaisonwit intnational soucs..........................................................................................................104

5.2.1 Evidnc om EUSILC on t isk o povty ..........................................................1045.2.2 Evidnc om EUSILC on incom inquality ...........................................................1095.2.3 Compaison wit ot cosscounty soucs ...........................................................112

5.3 Cangs in incom povty and inquality ov tim ..............................................................1185.3.1 Monitoing tnds in EUSILC .....................................................................................1185.3.2 Cangs in povty isk ..................................................................................................1205.3.3 Cangs in incom inquality .......................................................................................1205.3.4 Compaison wit national soucs: a cas study ........................................................120

5.4 Monitoing pogss ......................................................................................................................1245.4.1 An atiskopovty tagt...........................................................................................1245.4.2 T indicatos ..............................................................................................................126

5.5 Conclusions ....................................................................................................................................129

Rncs .............................................................................................................................................130Caactising t incom poo6. and t matially dpivd in Euopan countisAlssio Fusco, AnnCatin Guio and Eic Mali ...............................................................1336.1 Intoduction ...................................................................................................................................1346.2 Concpts and data .........................................................................................................................1346.3 Matial dpivation and incom povty in t EU ................................................................1386.4 Rlationsip btwn incom povty and matial dpivation ...........................................139

6.4.1 Factos acting t lationsip btwn incom povtyand matial dpivation ................................................................................................139

6.4.2 Rsults om EUSILC ...................................................................................................139

6.5 Caactisation o matial dpivation and incom povty in t EU..............................1446.5.1 Wok intnsity o t ousold ...................................................................................1466.5.2 Most qunt activity status ..........................................................................................1476.5.3 Housold composition .................................................................................................1476.5.4 Ag, gnd and ducation.............................................................................................1486.5.5 Halt poblms ..............................................................................................................1486.5.6 Housing tnu status .....................................................................................................148

6.6 Conclusions ....................................................................................................................................149Rncs .............................................................................................................................................150

T distibutional impact o imputd nt7.

Hannl Sauli and VliMatti mlto .....................................................................................1557.1 Intoduction ..................................................................................................................................1567.2 Totical and opational considations ..............................................................................156

7.2.1 Housing walt, ousing consumption and disposabl incom ...............................1567.2.2 Masumnt o imputd ntsas incom ....................................................................1577.2.3 T data and t potntial bnciais .......................................................................158

7.3 Imputd nts and incom inquality .........................................................................................1597.3.1 Ovall distibutional ct ...........................................................................................159

7.4 Imputd nts and incom povty .............................................................................................1637.4.1 Imputd nts o outigt owns .................................................................................1657.4.2 Imputd nts o tnants ................................................................................................165

7.5 Imputd nt and dpivation indicatos ...................................................................................166

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7.5.1 T impact on nonmontay dpivation indicatos ................................................1667.5.2 Hous ic cas poo .................................................................................................168

7.6 Imputd nts and altnativ masus o t conomic bnts o ousing .....................1707.7 Capping imputd nts? ................................................................................................................1717.8 Summay and conclusions ...........................................................................................................173Rncs .............................................................................................................................................177

Incom om ownconsumption8. Ml Paats and EnMagit iit ...........................................1798.1 Intoduction ...................................................................................................................................180

8.1.1 Common commndations o collcting t incom dataom ownconsumption ..................................................................................................180

8.1.2 Rcommndations in EUSILC .....................................................................................1818.2 Collcting incom om ownconsumption in EUSILC ........................................................182

8.2.1 Countis w incom om ownconsumption is not includd ..........................182

8.2.2 Countis w t incom om ownconsumption is includd...........................1828.3 Rsults .............................................................................................................................................1848.3.1 Impact o typ o qustionnai on valu o incom om ownconsumption.

Compaison o EU countis using UDB data.............................................................1848.3.2 Impact o typ o qustionnai on valu o incom om ownconsumption.

Compaison o Estonian data using dint typs o qustionnai .......................1858.3.3 Impact o ownconsumption on t incombasd EU indicatos

o social inclusion ...........................................................................................................1868.3.4 Inunc o ownconsumption on povty indicatos ...............................................1898.3.5 Cangs in povty isk ats du to OPP in dint ousold typs..................191

8.4 Summay and conclusions ..........................................................................................................192

8.4.1 Data compaability ..........................................................................................................1928.4.2 T impact o OPP on povty duction ....................................................................1938.4.3 Analysis o woking ypotss ....................................................................................1938.4.4 Rcommndations ..........................................................................................................194

Rncs .............................................................................................................................................194

Socioconomic dtminants o alt in Euop9.Cistina HnndzQuvdo, Cistina Massia and Elias Mossialos .....................................1959.1 Intoduction ...................................................................................................................................1969.2 Litatu viw ............................................................................................................................1969.3 EUSILC sampl and vaiabls ....................................................................................................199

9.3.1 Halt vaiabls ...............................................................................................................1999.3.2 Explanatoy vaiabls......................................................................................................200

9.4 Mtods ..........................................................................................................................................2009.4.1 Masuing inquality in alt outcoms ....................................................................2009.4.2 Longtm inqualitis in alt ...................................................................................2019.4.3 Dcomposition analysis..................................................................................................203

9.5 Rsults .............................................................................................................................................2039.5.1 Dsciptiv analysis .........................................................................................................2039.5.2 Evidnc on socioconomic inqualitis in alt outcoms .................................2039.5.3 Soucs o inqualitis ....................................................................................................208

9.6 Discussion.......................................................................................................................................208

Rncs .............................................................................................................................................210

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Social paticipation and social isolation10. Osolya Llks .............................................................21710.1 Intoduction .................................................................................................................................21810.2 Data ...............................................................................................................................................21910.3 Social paticipation .....................................................................................................................220

10.3.1 Findly Euop: quncy o social contacts ..........................................................22010.3.2 Social paticipation in voluntay activitis ................................................................22310.3.3 Robustnss o t sults: compaison wit t Euopan Social Suvy .............22510.3.4 Social paticipation maks popl appy ...................................................................229

10.4 Social isolation .............................................................................................................................22910.4.1 An ovviw ...................................................................................................................23110.4.2 Social isolation by ag: it tnds to incas by ag, altoug

lativly good inomal suppot o lp ......................................................................23510.4.3 Social isolation is gat among t poo and t unmployd, altoug

causality is uncla ...........................................................................................................235

10.5 Conclusions ..................................................................................................................................236Rncs .............................................................................................................................................239

Pogss o living conditions a dynamic modl11.o matial dpivation o a Euopan socity Mattias ill and Fanz Ei .........................24111.1 Intoduction .................................................................................................................................24211.2 Undstanding social inclusion as a multidimnsional pocss............................................24211.3 T EUSILC longitudinal componnt as a souc o monitoing cang .......................24411.4 PanEuopan pogss o living conditions ............................................................................24511.5 Evidnc on goss and nt cang o matial dpivation itms .........................................24811.6 Winns and loss in a modl o multipl cangs ...............................................................252

11.6.1 Pdicting nt multipl impovmnt in Euop ......................................................25311.6.2 Pdicting goss multipl cang o matial dpivation in Euop .....................25911.7 Conclusions and commndations .........................................................................................260Rncs .............................................................................................................................................261

T distibution o mploys labou anings in t Euopan Union:12.data, concpts and st sults Anda Bandolini, Alonso Rosoliaand Robto oini ...........................................................................................................................26512.1 Intoduction .................................................................................................................................26612.2 Eanings in EUSILC ..................................................................................................................26712.3 How dos EUSILC compa to ot soucs? ......................................................................26912.4 im units and convsion ats ................................................................................................27312.5 Eanings distibutions in EU countis ....................................................................................27612.6 T EUwid distibution o goss anings ............................................................................28212.7 Conclusions ..................................................................................................................................284Rncs .............................................................................................................................................285

Educational intnsity o13. mploymnt in Euop and t USDonald R. Williams ..........................................................................................................................28913.1 Intoduction .................................................................................................................................29013.2 T sac contxt....................................................................................................................29013.3 Mtodology and data ...............................................................................................................291

13.3.1 Mtodology..................................................................................................................29113.3.2 Data .................................................................................................................................294

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13.4 Employmnt sas by skill lvl ...............................................................................................29413.5 Dmogapic dincs............................................................................................................29913.6 Summay and conclusions .........................................................................................................301Rncs .............................................................................................................................................304

Assssing and analysing inwok povty isk14. Sopi Pontiux ..............................................30714.1 Intoduction .................................................................................................................................30814.2 Dnitions o woks and subsqunt analysis

o a woking pootyp pnomnon ......................................................................................30814.2.1 T dnitions o woks: activ, mployd, inwok .........................................30914.2.2 Impact on t siz o t poblm .............................................................................30914.2.3 Impact on t analysis o t poblm .......................................................................310

14.3 Povty isk at t individual lvl o woking ousolds:two ot ways to look at wok and povty isk ....................................................................317

14.3.1 At t individual lvl: a complmntay appoac in tms opovty in and incom .............................................................................................31714.3.2 At t ousold lvl: inwok ousolds? ............................................................322


T impact o basic public svics on t distibution15.o incom in Euopan countisRol Aabg, Audun Langgn and Ptt Lindgn ................................................................32915.1 Intoduction .................................................................................................................................33015.2 Dnition and masumnt o xtndd incom ..................................................................331

15.2.1 Cas incom ..................................................................................................................33115.2.2 T valu o public svics .........................................................................................33215.2.3 Allocation o public svics ........................................................................................33215.2.4 Accounting o nds ....................................................................................................334

15.3 Cosscounty compaison o incom inquality and povty..............................................33715.3.1 Main sults ...................................................................................................................33915.3.2. Intaction btwn incoms and nds o public svics ..................................339

15.4 Conclusion ...................................................................................................................................343Rncs .............................................................................................................................................343

Distibutional cts o dict taxs and social tanss cas bnts16.

Vaska AttaDakua and Andw Banad .....................................................................................34516.1 Intoduction .................................................................................................................................34616.2 Souc, mtodology and concpts ..........................................................................................346

16.2.1 Souc .............................................................................................................................34616.2.2 Mtodology ..................................................................................................................34616.2.3 Issus o incom inquality ..........................................................................................348

16.3 Rsults ...........................................................................................................................................34916.3.1 Ovall ct ..................................................................................................................34916.3.2 Rsults o tid ousolds .....................................................................................35716.3.3 Compaison o Gini cocints .................................................................................360

16.4 Conclusions ..................................................................................................................................364

Rncs .............................................................................................................................................367

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Policy simulation acoss countis using EUROMOD: stss tsting Euopan wla17.systms o unmploymnt Fancsco Figai, Anda Salvatoi and Holly Sutland ..........36917.1 Intoduction .................................................................................................................................37017.2 EUROMOD ................................................................................................................................370

17.2.1 Data .................................................................................................................................37117.3 Mtodological appoac ...........................................................................................................372

17.3.1 Countactual scnaios .............................................................................................37217.3.2 Sampl o intst ..........................................................................................................37317.3.3 Indicatos........................................................................................................................373

17.4 Wla systms o t unmployd in 2008 ..........................................................................37417.5 Rlativ silinc .......................................................................................................................37617.6 Potction against isk o povty .............................................................................................37817.7 Cost o potction ........................................................................................................................38117.8 Conclusions ..................................................................................................................................382

Rncs .............................................................................................................................................385Byond18. GDP, masuing wllbing and EU-SILC(Antony B. Atkinson, Eic Mali and Pascal Wol ................................................................. 38718.1 Intoduction .................................................................................................................................38818.2 Concptual issus ........................................................................................................................388

18.2.1 Divs vs. outcoms .....................................................................................................38918.2.2 Cang in population vs. cang in individual wllbing .....................................38918.2.3 Fquncy and timlinss.............................................................................................38918.2.4 Dint nds o dint subpopulations ...........................................................39018.2.5 Housold vs. individual wllbing ..........................................................................39018.2.6 Flow vs. stock .................................................................................................................390

18.3 Composit indics .......................................................................................................................39018.4 EUSILC and ot ousold data soucs ............................................................................39118.5 Conc among ousold suvys ......................................................................................39318.6 Conc o incom data at an agggat lvl ......................................................................394

18.6.1 Housold incom ........................................................................................................39418.6.2 Imputd nt on ownoccupid ousing ................................................................39418.6.3 Individual consumption xpnditu o gnal govnmnt ................................39618.6.4 Pnsions ..........................................................................................................................39618.6.5 Sampling and nonsampling os ............................................................................39618.6.6 Rconciliation ................................................................................................................396


Appndics ..........................................................................................................................................399Appndix 1: List o NtSILC mmbs ............................................................................................400Appndix 2: County ocial abbviations and gogapical agggats ...................................401

County ocial abbviations ...............................................................................................401Gogapical agggats ..........................................................................................................401

Appndix 3: Ot abbviations and aconyms .............................................................................402Appndix 4: Auto indx ..................................................................................................................404Appndix 5: Subjct indx ..................................................................................................................410

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List o tables, gures and boxes

Tables

abl 2.1: Minimum ctiv sampl siz o t cosssctionaland longitudinal componnts by county ........................................................................................................ 45

abl 2.2: Basic concpts and dnitions A t national dnitions compaablwit tos o t standad EUSILC?, 2008 ...................................................................................................51

abl 3.1: Housolds civing incom om slmploymnt, 2007 ........................................................ 63

abl 3.2: Ratio o upp pcntils to t mdian, 2007otal disposabl ousold incom HY020..................................................................................................65

abl 3.3: Unit nonspons cosssctional sampl, 2007 ....................................................................... 67

abl 3.4: Itm nonspons: incom om slmploymnt PY050, 2007 ............................................ 70

abl 3.5: Estimats o standad os and componnts o dsign cts, 20052006 ............................. 74abl 4.1: Distibution o ousold typs, 2007 ............................................................................................ 84

abl 4.2: Distibution o ousolds by numb o cildn, 2007 ........................................................... 86

abl 4.3: Housold typ in wic cildn liv, 2007 ................................................................................. 87

abl 4.4: Young popl: tansitions and pcntags living alon, 2007 ..................................................... 90

abl 4.5: Pcntag o patnsips wic a coabiting at tan maitalpatnsips odint ag goups o womn, 2007 .................................................................................... 91

abl 4.6: T living aangmnts o popl agd 65 yas and ov, pcntags, 2007 ......................... 93

abl 4.7: Facto loadings, 2007.........................................................................................................................95

abl 5.1: National atiskopovty tsolds o a ousold consisting o2 adults and 2 cildn blow 14 in EU27 countis PPS, Suvy Ya 2008........................................105

abl 5.2: Wold Dvlopmnt Indicatos in EU27 countis as publisd in 2009............................... 114

abl 5.3: National atiskopovty ats in EU27, Suvy Yas 20032008 ......................................119

abl 5.4a: Incom inquality in EU27 countis: S80/S20 atio, Suvy Yas 20032008 ...................121

abl 5.4b: Incom inquality in EU27 countis: Gini cocints,Suvy Yas 20032008 ....................................................................................................................................122

abl 6.1: Joint distibution o incom povty and matial dpivation,national distibutions and EU25 distibutions by boad ag goups %, 2007 ...................................... 143

abl A.6.1 1/2: Dtminants o incom povty and matial dpivation, 2007 ..............................152

abl A.6.1 2/2: Dtminants o incom povty and matial dpivation, 2007 ..............................153abl 7.1: Imputd nt as incom: t stimation mtods in EUSILC, 2007 ......................................158

abl 7.2: Cangs in incom inquality wn moving om casincoms to incoms augmntd wit imputd nts, 2007..........................................................................160

abl 7.3: EUwid incom inquality indicatos Gmany xcludd, 2007 ..........................................162

abl 7.4: At isk o cas povty ats, at isk o povty ats a inclusion o imputd ntsand at isk o povty ats a inclusion o cappd imputd nts % o psons, 2007 .....................172

abl 8.1: Rason o not collcting PY070 ....................................................................................................183

abl 8.2: Dincs btwn t povty isk ats witout and wit OPPo dint typs o ousold ousolds, pcntag points, 2008 ................................................... 192

abl 9.1: Longtm concntation indics and mobility indics, 20052007 .........................................207

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abl 10.1: Paticipation in vaious typs o inomal activitisduing t last ya, % o population p county, 2006 ..............................................................................224

abl 10.2: Ability to gt lp and quncy o gtting togt wit lativs o inds %, 2006 ... 225

abl 10.3: Sa o population mting lativs o inds at last onc a wk %.Compaison o EUSILC 2006 data wit tos o t Euopan Social Suvy ESS 2004 and 2006 ..226

abl 10.4: Sa o population lping ots outsid own ousold and tosngagd in political actions duing t last ya, %. Compaison o EUSILC 2006 data wit tos ot Euopan Social Suvy ESS 2004 and 2006 ........................................................................................228

abl 10.5: Colation btwn masus o subjctiv wllbing and social paticipation, 2006 ......229

abl 10.6: Altnativ masus o social isolation acoss EU countis,sa o population actd %, 2006 ...........................................................................................................233

abl 11.1: Compaison o t longitudinal pattn o t matial dpivationindicato and numb o cangd itms in % o t longitudinal population, 20062007 ...................252

abl 11.2: OLS Rgssion modl o pdictd nt and goss multipl cangs ....................................254abl 12.1: Eanings in EUSILC and in national accounts in 2006millions o uos and p cnt ......................................................................................................................270

abl.12.2: Statistics o t distibution o goss anings in EU countis, 2006...................................278

abl 12.3: Statistics o t EUwid distibution o goss anings, 2006 .............................................. 281

abl 12.4: Vaianc dcomposition o t logaitm o montly ulltimquivalnt anings absolut valus and pcntag sas in italics, 2006 ........................................... 284

abl A.12.1: Altnativ dnitions o mploy cas o na casincom in EUSILC %. Suvy Ya 2007 ................................................................................................... 287

abl 13.1: Occupational classications, by skill lvl, 2007........................................................................293

abl 13.2: Occupational distibutions by gnd, ag and citiznsip,slctd EUSILC countis combind p cnt in occupation, 2007 .....................................................300

abl 13.3: Skill Distibutions by gnd, ag and citiznsip,slctd EUSILC countis combind p cnt in skill catgoy, 2007 .................................................301

abl A.13.1: Sampl sizs ................................................................................................................................305

abl 14.1: Activ, mployd, inwok %, 2007 ..........................................................................................311

abl 14.2: Povty isk and woks at isk o povty by mploymnt status %, 2007 .......................312

abl 14.3: Povty isk witin ull ya mploymnt and activity polo woks at isk o povty %, 2007 ...........................................................................................................313

abl 14.4: Woks at isk o povty and concntationo povty isk by ousold typ %, 2007 .................................................................................................316

abl 14.5: Povty in and incom and povty isk o inwok woks, 2007 ................................ 320

abl 14.6: Povty in and incom and povty isk by gnd, 2007 ...................................................321

abl 15.1: Altnativ dnitions o quivalnt incom .............................................................................337

abl 15.2: Equivalnc scals by ousold typ, 2006 ..............................................................................338

abl 15.3: Ginicocint o t distibution o incomby incom dnition and county, 2006 .........................................................................................................340

abl 15.4: Atiskopovty by incom dnition and county %, 2006 ............................................340

abl 15.5: Atiskopovty dcomposd by substs accodingto incom dnition and county %, 2006 ..................................................................................................341

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abl 15.6: Atiskopovty o cas incom masu EU scal,by county and by quintils o t nds indx %, 2006 ...........................................................................341

abl 15.7: Atiskopovty o xtndd incom masu EU scal,by county and by quintils o t nds indx %, 2006 ...........................................................................342

abl 15.8: Atiskopovty o xtndd incom masu NA scal,by county and by quintils o t nds indx %, 2006 ...........................................................................342

abl 16.1a: Incom quintil sa atios S80/S20 o ALL ousolds, 2007 .......................................351

abl 16.1b: Gini and concntation cocints o ALL ousolds %, 2007 .....................................352

abl 16.2: Summay o t siz o cas bnts and dict taxsas a pcntag o goss incom o ALL ousolds, 2007 .......................................................................353

abl 16.3: Cas bnts as t pcntag o goss incomby quintil goups o ALL ousolds, 2007 ................................................................................................356

abl 16.4: Dict taxs as t pcntag o goss incom by quintil goups, 2007 ..............................358

abl 16.5: Gini and concntation cocints o REIRED ousolds, 2007 ....................................361abl 16.6: Summay o t siz o cas bnts and dict taxs as a pcntago goss incom o REIRED ousolds, 2007 ..........................................................................................362

abl 16.7: Cas bnts as t pcntag o goss incomby quintil goups o REIRED ousolds, 2007 ......................................................................................363

abl 16.8: Dict taxs as t pcntag o goss incomby quintil goups o REIRED ousolds, 2007 ......................................................................................365

abl 16.9: Compaing Gini cocints o disposabl incom by county, 2007 ...................................366

abl 16.10: Gini cocints o incom t Unitd Kingdom .............................................................367

abl 17.1: Caactistics o t nw unmployd ......................................................................................374

abl 17.2: Avag Rlativ Wla Rsilinc Indicato RWRIwit and witout unmploymnt bnts UBs ..........................................................................................376

abl 17.3: Popotion o t nw unmployd potctd om alling blow t povtytsold in unmploymnt, wit and witout unmploymnt bnts UBs .......................................382

igures

Figu 2.1: EUSILC implmntation ............................................................................................................... 39

Figu 2.2: Fildwok piod, 2008 ...................................................................................................................48

Figu 2.3: Avag intviw duation p individual, 2008 ........................................................................49

Figu 2.4: Ovall psonal nonspons ats, 2008 ..................................................................................50Figu 3.1: yps o os in suvys ............................................................................................................... 60

Figu 3.2: Componnts o nonspons ........................................................................................................ 66

Figu 4.1: Exampl o a ousold gid ......................................................................................................... 82

Figu 4.2: Clusts aising om Pincipal Componnts Analysis, 2007 ....................................................96

Figu 5.1: National atiskopovty ats in EU27, Suvy Ya 2008 ................................................107

Figu 5.2: National atiskopovty ats o cildn ando ovall population in EU27, Suvy Ya 2008 ......................................................................................108

Figu 5.3: National atiskopovty ats and lativ mdianatiskopovty gap in EU27, Suvy Ya 2008 ......................................................................................110

Figu 5.4: Incom inquality in EU27 countis, Suvy Ya 2008 ........................................................111

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Figu 5.5: National atiskopovty ats and S80/S20 atios, EU27, Suvy Ya 2008 ..................113

Figu 5.6: National atiskopovty ats in vaious EUand nonEU countis: Estimats om OECD, EUSILC and LIS, Suvy Ya 2008.............................116

Figu 5.7: National Gini cocints in vaious EU and nonEU countis:Estimats om OECD, EUSILC and LIS, Suvy Ya 2008 ......................................................................117

Figu 5.8: Millions takn out o incom povty and numb oEU countis tat nd to b involvd, Suvy Ya 2008 ........................................................................... 125

Figu 5.9: Multipl indicatos o t Euop 2020 tagt, gus oEU27 in million o psons, Suvy Ya 2008.............................................................................................127

Figu 5.10: Extnt o ovlap accoding to t t indicatos on wic tEuop 2020 tagt on social inclusion is basd, EU27, Suvy Ya 2008 ..............................................128

Figu 6.1: National matial dpivation ats and national andEUwid atiskopovty ats AROP, 2007 ..........................................................................................137

Figu 6.2a: Intnsity o dpivation om 0 to 9 and dpivation at %accoding to t lvl o quivalisd incom % mdian, EU15 and Noway, 2007 .............................140

Figu 6.2b: Intnsity o dpivation om 0 to 9 and dpivation at %accoding to t lvl o quivalisd incom % mdian, NMS10 xcluding Malta, 2007 ....................141

Figu 7.1: Cangs in incom inquality and avag incomwitout imputd nt > wit imputd nt , 2007 ..................................................................................161

Figu 7.2: Cangs in t atiskopovty positions wnimputd nts a addd to incom population sas, 2007 ...................................................................163

Figu 7.3: Rlativ cangs in t FG incom povty masus: total population %, 2007 ...........164

Figu 7.4: Contibutions o own ousolds bas to t cang

in total povty isk ats lin, 2007 .............................................................................................................164Figu 7.5: Contibutions o tnant ousolds basto t cang in total povty isk ats lin, 2007 ...................................................................................167

Figu 7.6: Matial dpivation ats in populations xiting om,nting in and maining in population at isk o povty du toinclusion o imputd nts in incom, 2007...................................................................................................167

Figu 7.7: Cangs in matial dpivation and ovcowdingin t population at isk o povty du to t inclusiono imputd nts in incom, 2007 ....................................................................................................................169

Figu 7.8: Sa o cas poo ous ic psons wit imputdnt valus tat at last doubl ti cas disposabl incom, 2007 ...........................................................169

Figu 7.9: Cang o t ang o t incom sa o imputd ntsby capping basd on ovcowding citia, psons wit nonzo IR, 2007 ..........................................172

Figu 7.10: Nt cang ntis minus xits in t numbo psons at isk o povty wn ull o cappd valu o IR isaddd to incom % o psons at isk o cas povty, 2007 ....................................................................174

Figu 7.11: Entis to and xits om t population atisk o povty wn IR is addd to incom % o psons at isk o cas povty, 2007 ......................175

Figu 8.1: Rcoding incom om ownconsumption and impotanco tat in total incom, 2007 ............................................................................................................................185

Figu 8.2: Rcoding incom om ownconsumption and impotanc o tat in total incom by datacollction mtod in Estonia, 20002008 ......................................................................................................186

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Figu 8.3: Pcntag o ousolds poducing goods o own consumption, 2008 ..............................187

Figu 8.4: Sa o incom om own consumptionin total disposabl ousold incom %, 2008 ...........................................................................................187

Figu 8.5: Atiskopovty at witout and wit OPP, % o popl, 2008 ..........................................188Figu 8.6: Rlativ mdian povty isk gap %, 2008 ...............................................................................188

Figu 8.7: Inwok povty isk witout and wit OPP, % o popl, 2008 ............................................190

Figu 8.8: Incom inquality S80/S20 atio wit and witout OPP, 2008 .............................................190

Figu 9.1: Concntation cuv o an indicato o alt limitations compad tot 45dg lin diagonal o pct quality T xampl o Cypus in 2007 ................................202

Figu 9.2: Pcntag o individuals poting vy good o goodslassssd alt, 20052007 ......................................................................................................................204

Figu 9.3: Pcntag o individuals poting alt limitationsin ti daily activity, 20052007 .....................................................................................................................204

Figu 9.4: Pcntag o individuals poting a longstanding conic illnss, 20052007 ..................205

Figu 9.5: Concntation indics o alt limitations o wavs 2005, 2006 and 2007 .......................206

Figu 9.6: Dcomposition sults o t 2007 alt modl ....................................................................209

Figu 10.1: Fquncy o gtting togt wit lativs %, 2006 ..........................................................221

Figu 10.2: Pcntag o population wo av qunt psonalcontact wit lativs and inds, 2006 ........................................................................................................221

Figu 10.3: Cyb contacts vsus psonal mtings:atio o tos wit cyb contact compad to tos witpsonal mtings minimum onc a wk, 2006 ..........................................................................................222

Figu 10.4: Social isolation acoss EU countis:not abl to ask any lativ, ind o nigbou o lp %, 2006 .........................................................230

Figu 10.5: Social isolation at an EU lvl:sa o population nv mting inds, lativs o it o ts %, 2006 ....................................232

Figu 10.6: Ratio o tos wit no inds by ag goupscompad to t total population, 2006 .........................................................................................................234

Figu 10.7: Ratio o tos wit no lp by ag goups compadto t total population, 2006 ............................................................................................................................236

Figu 10.8: Ratio o tos wit no inds by povty statusatio btwn tos at isk o povty and tos not at isk, 2006...........................................................237

Figu 10.9: Ratio o tos wit no lp by mploymnt statusRatio btwn paticula goups and t total woking ag population, 2006 ......................................238

Figu 11.1: Analytic amwok o social xclusion in Euop ................................................................243

Figu 11.2: Impotanc o nonmakt svicsin t disposabl incoms o pivat ousolds*, national accounts, 2008............................................246

Figu 11.3: Goss cang o dpivation itms %, 20062007 ...............................................................249

Figu 11.4: Nt cang o dpivation itms %, 20062007 ...................................................................249

Figu 11.5: Goss cang in dpivation itms o woking agindividuals wo incas o dcas labou makt paticipation %, 20062007 ................................250

Figu 11.6: Map o pdictd nt multipl cangs in t nc goup %, 20062007 ................256

Figu 11.7: Map o pdictd goss multipl cangs in t nc goup %, 20062007 ..............258

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Figu 12.1: Map o availabl nt and goss mploy cas o nacas incom in EUSILC, SuvyYa 2007 ..................................................................................................269

Figu 12.2: ax wdg on labou costs o low wag ans in

15 EU countis %, Suvy Ya 2007 ..........................................................................................................272Figu 12.3: Impact on masud al wags o t coic o t PPP indx, 2006 .................................274

Figu 12.4: Distibution o al montly ulltim quivalnt goss anings in EU countistousands o uos in PPSHFCE, 2006 ......................................................................................................275

Figu 12.5: Dcil atio o goss anings in EU countis, 2006 ..............................................................277

Figu 12.6: Distibution o al montly ulltim quivalnt anings in slctd EU countisby dint dnitions o anings PPSHFCE, 2006 ...............................................................................280

Figu 13.1: Employmnt sas by skill lvl, EU and US, 2007 ...............................................................295

Figu 13.2: Employmnt sas by skill lvl, slctd EUSILC countis, 2007 .................................. 297

Figu 13.3: Cumulativ mploymnt sas by skill lvl and dmogapic goup,

slctd EUSILC countis, 2007 ...................................................................................................................302Figu 14.1: Employmnt poblms * and povty isk atio o % o womn to % o mn ..............318

Figu 14.2: Poo in and incom/not poo in and incom %, 2007 ..............................................321

Figu 14.3: Povty in and incom in inwok povty isk by gnd %, 2007 ............................. 322

Figu 16.1: Concntation cuv o bnts 5 ousolds ....................................................................349

Figu 16.2: Summay o t ct o taxs and bnts on ducing incom inqualityo t Gini cocint pcntag point duction in Gini cocint, 2007 .........................................355

Figu 16.3: Scatt plot o dispopotionality o bnts % vs. ti avag at %, 2007 ..............359

Figu 16.4: Scatt plot o dispopotionality o taxs % vs. ti avag at %, 2007 ...................359

Figu 17.1: Avag Rlativ Wla Rsilinc Indicato RWRIand postunmploymnt ousold incom composition,wit unmploymnt bnts ...........................................................................................................................377

Figu 17.2: Avag Rlativ Wla Rsilinc Indicato RWRIand postunmploymnt ousold incom composition by ousold incomquintil goup, wit unmploymnt bnts.................................................................................................379

Figu 17.3: T popotion o nw unmployd at isk o allingblow t povty tsold, wit unmploymnt bnts ........................................................................380

Figu 17.4: Avag budgtay cost p unmployd psonas a popotion o pcapita national disposabl incom ....................................................................... 383

Figu 18.1: Linking national incom ows to ousold disposabl incom .........................................395

Boxes

Box 14.1: Dnitions o woks .....................................................................................................................310

Box 14.2: Activity pols.................................................................................................................................314

Box 14.3: An indicato o povty in and incom....................................................................................319

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1Living conditions in Erope andthe Erope 2020 agendaAnthony B. Atkinson and Eric Marlier (1)

1 Antony B. Atkinson is at Nuld Collg, Oxod, and t London Scool o Economics UK; Eic Mali is wit t CEPS/INSEAD RsacInstitut Luxmboug. T autos would lik to tank t Euopan Commission o ti suppot o t Ntwok. T Euopan Commission basno sponsibility o t analyss and conclusions, wic a solly tos o t autos. Addsss o cospondnc: [email protected] and [email protected].

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1 Living conditions in Europe and the Europe 2020 agenda

1.1 Introduction

is book is about t incoms and livingstandads o t popl o Euop. T

ad will lan about mploymnt, incominquality and povty, ousing, alt,ducation, dpivation and social xclusion. Tcapts tll about ow t woks o Euopan ti living, about t living aangmntso Euopans, about ti social paticipation,and about t ways in wic ti incomsa actd by taxs and tanss. T bookaddsss many o t social issus conontingEuop. How muc incom povty is t

in Euop? Is inquality incasing? Dos a job guaant scap om incom povty?How is Euops wla stat coping wit tconomic cisis?

Evidnc about ts impotant dimnsionso Euopan socity coms om a data souctat as bn pogssivly implmntd sinc2003: t EU Statistics on Incom and LivingConditions EUSILC. EUSILC psntsa powul instumnt o t analysis o t

conomic and social stat o t EuopanUnion EU as wll as a gowing numbo nonEU Euopan countis. It is a laginvstmnt, and quis substantial ot ont pat o t Euopan Statistical SystmESS, but it is alady playing a majo ol int povision o ky socioconomic statistics.EUSILC as boostd t possibilitis ocaying out compaativ analyss o incomdistibution and living conditions in Euop.

It is to impotant to tak stock o watas bn acivd and to consid possiblutu applications and dvlopmnts o EUSILC. It was o tis ason tat t NtSILCNtwok was stablisd, in spons to a callo applications by t Statistical Oc ot Euopan Union Euostat in 2008. TNtwok, coodinatd by Eic Mali in closcoopation wit Antony B. Atkinson, consistdo igt tams om paticipating ESS bodissvn National Statistical Instituts Austia,

t Czc Rpublic, Estonia, Finland, Italy,

Noway, t Unitd Kingdom and t CEPS/INSEAD sac institut in Luxmboug,igt tams om acadmic institutions 2, wit

t additional paticipation o t Bank o Italyand t Fnc National Statistical InstitutINSEE. NtSILC was tus an ambitious18patn Ntwok binging togtxptis om bot data poducs dictlyinvolvd in t collction o EUSILC data anddata uss.

T psnt book psnts a majo outputom t NtSILC Ntwok, but not all o tscintic wok poducd in t contxt o Nt

SILC could b covd. In t book, w avocusd on t sac ndings tat w bliva likly to b o intst to t gnal adand to tos concnd wit policy. W askdt autos o individual capts to mak tmas accssibl as possibl to t nonspcialist.Mo tcnical matial, and t output omt mo mtodological wok packags, aavailabl in t sis Eurostat methodologies andworking papers.

Ou mpasis in tis book cts t act tatEUSILC plays a cntal ol in t pomotiono t Social Agnda o t EU. 3 In its list ot main uss o EUSILC data, Euostat putsat t ad institutional uss and in paticulat EU Social Potction Committ SPC, tbody tat as bn in cag o coodinatingand monitoing togt wit t EuopanCommission t Opn Mtod o Coodinationon social potction and social inclusion SocialOMC sinc it was launcd back in 2000. 4

2 Nuld Collg UK, Wissnscaszntum Blin Sozialoscung WZBBlin, Gmany, Institut Wallon d lEvaluation, d laPospctiv t d la Statistiqu IWEPS, Blgium, Euopan Cnto Social Wla Policy and Rsac Austia, London Scool oEconomics UK, Institut o Social and Economic Rsac o tUnivsity o Essx ISER, UK, Univsity o Sinna Italy, Knt StatUnivsity USA.

3 On t Rnwd Social Agnda adoptd by t Euopan Commissionon 2 July 2008, s: ttp://c.uopa.u/social/main.jsp?catId=547.

4 T SPC consists o ocials om mainly Employmnt and Social Aais Ministis in ac Mmb Stat as wll as psntativs o tEuopan Commission; it pots to t EU Employmnt, Social Policy, Halt and Consum Aais EPSCO Council o Minists. In tcontxt o t Social OMC, all EU countis coopat in t lds osocial inclusion, pnsions, and altca and longtm ca. Fo mo

inomation on t SPC and t Social OMC, s Euopan Commissionwbsit ttp://c.uopa.u/social/main.jsp?catId=750&langId=n .
http://ec.europa.eu/social/main.jsp?catId=547http://ec.europa.eu/social/main.jsp?catId=750&langId=enhttp://ec.europa.eu/social/main.jsp?catId=750&langId=enhttp://ec.europa.eu/social/main.jsp?catId=547

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1Living conditions in Europe and the Europe 2020 agenda

Duing t li o t Ntwok, EUSILC took onpaticula signicanc wit t adoption in Jun2010 by t Euopan Council o t Euop

2020 Hadlin agts.

5

T o tstagts lats to povty and social xclusion,and EUSILC will b t nc souc o tt indicatos on wic tis nw EU tagt isbasd as discussd ut blow in Sction 1.4and in Capt 5.

T EU at t tim o witing as 27 MmbStats. Its cunt covag cts tEnlagmnts tat av takn plac in cntyas. As a sult o t May 2004 Enlagmnt,

t EU gw om 15 to 25 Mmb Stats. T10 nw EU countis w Cypus, t CzcRpublic, Estonia, Hungay, Latvia, Lituania,Malta, Poland, Slovnia and Slovakia. In Januay2007 t most cnt Enlagmnt, Bulgaiaand Romania joind. 6 Rads sould nottat in a numb o capts Bulgaia, Malta andRomania a not covd bcaus data o tscountis w not availabl om t EUSILCUss databas UDB to wic t Ntwokad accss.

Incasingly, EUSILC is bing cognisd as asignicant intnational statistical souc, notlast bcaus its covag is not connd to t 27EU countis EU27. T amwok appoacadoptd wn stablising EUSILC is aninnovativ xpimnt tat may av lssons oot aas o EU statistics. It is opd totat t NtSILC ndings will appal to adsom outsid t EU. In paticula, it is lvant tot woldwid intst in moving Beyond GDP,

and tis is t subjct o Capt 18. Ou ocus int book is on EUSILC, but nc sould bmad to ot impotant EU soucs o vidncabout incoms and living conditions. Ts

5 T Euopan Council, wic bings togt t EU Hads o Statand Govnmnt and t Psidnt o t Euopan Commission,dns t gnal political diction and pioitis o t EU. Evysping, it olds a mting tat is mo paticulaly dvotd to conomic and social qustions t Spring European Council. Witt nty into oc o t aty o Lisbon on 1 Dcmb 2009, itas bcom an ocial institution and as a Psidnt. T Conclusions o t Jun 2010 Euopan Council a availabl om:ttp://c.uopa.u/u2020/pd/council_conclusion_17_jun_n.pd .

6

S list o County ocial abbviations and gogapical agggatsAppndix 2.

EU soucs includ inter alia t Labou FocSuvys usd o xampl in Capt 17, tEuobaomt usd o xampl in Capt 11,

and t Euopan Social Suvy usd o xamplin Capt 10. An impotant souc o tanalysis o tax and bnts is t EUROMODmodl, dscibd in Capt 17. A majo ncpoint o a numb o capts is t data poviddby t Luxmboug Incom Study LIS andt analysis by t Oganisation o EconomicCoopation and Dvlopmnt OECD.

In t maind o tis Intoduction, w dscibSction 1.2 t contnts o t book and t

ot outputs om t NtSILC Ntwok,summais Sction 1.3 t main lssons o tutu dvlopmnt o EUSILC, and considSction 1.4 t ol tat EUSILC may play int nw political contxt o omation o nationaltagts and latd social policis witin tboad amwok o EU tagts. W also gtback to t latt in Capt 5.

1.2 Outline o the contents

T book opns in Capt 2 wit a dsciptiono t EUSILC data, povidd by Euostat. Tdsciption o statistical soucs and mtodsmay not stik t ad as t most gippingsubjct. Many univsitis av movd cousson statistical soucs om ti social scincsyllabi, placing tm by couss tat a moycatcing o mo matmatical. But data a

vy impotant, and cannot b takn o gantd.Wil data can today b downloadd om many

soucs and immdiatly tund into tabls andgaps o usd to stimat statistical modls,ty can only b liably usd on t basis o anappciation o ti stngts and waknsss.Unlss on knows somting about t oigins ot data, and t pocssing mtods tat avbn applid, a data us vn t ad otabls and gaps in tis book can go siouslywong. Fo t sam ason, w ug adsto consult Capt 3 by Vma and Btti ondata accuacy in EUSILC. T autos av

summaisd succinctly, and in a lagly non
http://ec.europa.eu/eu2020/pdf/council_conclusion_17_june_en.pdfhttp://ec.europa.eu/eu2020/pdf/council_conclusion_17_june_en.pdf

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tcnical mann, t dint dimnsions odata quality. As a minimum, t ad souldlook at abl 3.1, wic lists t maniold possibl

soucs o o.T isk in t ot diction is tat, at tanignoing t possibl sotcomings o t data,t ad is ovwlmd by t catalogu opossibl soucs o o. How, t ad mayask, can any wigt b attacd to t outcomo suc a pocss? Suc a action gos too a.On o t aims o Capts 2 and 3 is to dscibt pocdus applid to dal wit t potntialpoblms and t ccks tat a applid. Indd,

many o t capts consid t validity ot EUSILC data, including compaisons witot statistical soucs. Ts ccks val tatt a issus tat nd to b addssd sSction 1.3 blow, and som o t sults mustb dgd by qualications. T ovall pictu,owv, is assuing, and, in ou viw, t EUSILC data av suvivd wll t dmands placdon tm in t sac pojcts caid out aspat o NtSILC.

T substantiv contnts stat wit Capt 4,w Iacovou and Skw xamin t vidncabout ousold stuctu in Euop. Tdincs acoss Euop in ousoldomation a on o t atus obvious toany tavll, and t data conm a numbo ts impssions. In t Nodic countis,o xampl, aound a quat o all ousoldsconsist o a singl adult agd und 65, wasin Cypus, Potugal and Spain t popotion islss tan a tnt. Wat is lss obvious is ow

to daw out common pattns, paticulaly witt Enlagmnt om EU15 to EU25, and apaticula ocus o t capt is t intgationo Nw Mmb Stats wo joind t EU inMay 2004 into t analysis. Ti statisticalanalysis igligts t actos: t impotanco t xtndd amily, t stability o tintimat lationsip, and t lvl o tility.T ol o t st two actos is convnintlysummaisd in Figu 4.2.

A asking wo livs in t ousold, t nxt

qustion may wll b wat is ti incom?Incom is an impotant vaiabl o Euopsousolds. Popl a natually concnd

wit ow muc ty civ ac mont in tom o anings om wok mploymnt oslmploymnt, om pnsions, om otgovnmnt tanss suc as unmploymntbnts, amily bnts o sick pay, and omti savings. In Capt 5, Atkinson, Mali,Montaign and Rinstadl xamin tdistibution o incom in EU27. A tlag dincs? In wic countis a tdincs lagst? Paticula concn attacsto tos ousolds considd atisko

povty accoding to t EU dnition7 andtis is on o t indicatos tat om t basiso t nwly adoptd EU Hadlin agt opovty and social xclusion s Sction 1.4.T ndings sow tat 1 in 6 o 16 p cntcitizns o t EU27 a at isk o povty, andty a to b ound in all Mmb Stats. Tisovall povty at as vaid littl ov tpiod covd by EUSILC. In tquats oMmb Stats, t popotion o cildn at isk

o povty xcds t ovall popotion; ta al gounds o concn about cild povtyand t social inclusion o cildn in Euop.Succss in ducing incom povty tnds togo wit succss in ducing incom inquality;t a no instancs o countis pusuing alow povty/ig inquality statgy. W do notyt know t impact o t conomic cisis, butt pictu pio to 2008 was not a static on.Som countis acivd sustaind ductionsin t popotions atiskopovty, but in t

EU as a wol tis pogss as bn ost byvsals in ot Mmb Stats. It is widly

7 In ac county, t EU indicato o atiskopovty is calculatd wit a tsold st at 60 p cnt o t national ousoldquivalisd mdian incom; it is tus a lativ dnition. T mostcnt list o indicatos tat av bn commonly agd by t EUo monitoing t Social OMC was adoptd by t EU Social Potction Committ in t scond al o 2009. Tis list includs oupotolios o indicatos and contxt inomation: on o t Social OMC as a wol ovacing potolio and on o ac o tt social stands social inclusion, pnsions and alt potolios. Fo ac indicato, it povids t agd dnition and sociodmogapics bakdowns. T dtaild and updatd dsciptiono t Potolio o indicatos o t monitoing o t Euopan

statgy o social potction and social inclusion is availabl om:ttp://c.uopa.u/social/main.jsp?catId=756&langId=n .
http://ec.europa.eu/social/main.jsp?catId=756&langId=enhttp://ec.europa.eu/social/main.jsp?catId=756&langId=en

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1Living conditions in Europe and the Europe 2020 agenda

blivd tat incom inquality was incasingglobally pio to t conomic cisis, but t EUSILC data suggst tat t EU pictu is mo

nuancd, wit som Mmb Stats xibitingdclining inquality.

T atiskopovty indicato dscibd abovlats to incom, and t povty tsoldis dnd lativ to t mdian incom ot county in wic a ousold sids. Tindicatos o matial dpivation cntlyadoptd by t EU, analysd in Capt 6 byFusco, Guio and Mali, psnt a signicantdpatu in tat ty a not incombasd andin tat t sam tsold is applid acoss tEU27. T EU dpivation indicatos a basdon t nocd lack o itms om a list o ninitms wic includ on wk annual olidayaway om om, adquat ating, aving awasing macin, tc. T sulting pictu odpivation is, not supisingly, dint om tatwit t atiskopovty indicato. Wil somcountis, suc as t Ntlands, sco wllon bot, ot countis a ound in dintpositions. Hungay and Slovakia o xampl av

ig lvls o matial dpivation but low incompovty ats. Not only countis, but also popl,cang positions. In any county, som popl aincom poo but not matially dpivd, and vic

vsa. T is in tis spct a divid btwnEU15 and t Nw Mmb Stats, t bing agat dg o ovlap in t om cas.

T nxt capts pob ut into t livingconditions o Euops ousolds. Housing isvidntly a ky concn, but w av to tak

account o t dint oms o ousing tnu.In Capt 7, Sauli and mlto xamin tconsquncs o t act tat own occupis aadvantagd by vitu o not aving to pay nt. Itis to not asy to compa ti standads oliving wit tos o tnants. T a also somtnants wo pay nts blow t makt at o livnt. A all, i two owns w to nt outti ouss to ac ot, tn t nt civdwould count as pat o ti incom. T pocduxamind in Capt 7 involvs imputing a ntto owns, to tak account o t bnt divd

wit t actual ousing costs bing subtactd.T autos sow tat suc an adjustmnt wouldact t majoity o ousolds: ovall, naly

80 p cnt o EU ousolds ownd ti mainsidnc o ntd at a blowmakt nt.T lowst om ownsip ats a ound inAustia and Gmany. Inclusion o imputd ntlads to a low stimat o t dg o incominquality. T atiskopovty at would allby 5 pcntag points in Iland and t UnitdKingdom, by 4 pcntag points in Estonia andSpain, and by mo tan 2 pcntag points inBlgium, Gc, Latvia and Potugal.

Small in scal, but a lativly impotantsouc o incom in som Mmb Stats, is tconsumption o goods and svics poducdby t ousold, t subjct o Capt 8 byPaats and iit. Tis inomation is not collctdby all countis paticipating in EUSILC, ont gounds tat ot soucs sow tat ownconsumption dos not psnt a signicantpopotion o incom. Fo ot countis,paticulaly Bulgaia, Latvia, Lituania, andRomania, t amounts a signicant, in tat

ti inclusion ducs t atiskopovtyat by mo tan 1 pcntag point.

T book tn tuns to ot dimnsions o liin Euop. Capt 9, by HnndzQuvdo,Massia and Mossialos, is concnd witt socioconomic dtminants o alt.Altoug, puzzlingly, t Euop 2020 Hadlinagts do not includ a alt dimnsion, tEU as bcom incasingly concnd about tgowing dispaitis in t alt o t Euopan

population. T EUSILC data usd lat toslpcivd alt status, t psnc o longstanding illnss o disability, and t psnc olimitations on daily activity. As ty sow, t isconsidabl cosscounty vaiation. T igstpopotion poting ti alt as vy goodo good is tquats o mo in Cypus, tNtlands, Swdn and t Unitd Kingdom,wil popotions lss tan a al a to b oundin Latvia, Lituania, Hungay and Potugal.T popotions poting alt limitations onactivity a aound on in Cypus, Poland,

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Swdn and t Unitd Kingdom, but ov a tidin Estonia, Finland and Latvia. T paticulaaspct on wic t autos ocus is t vaiation

o alt by socioconomic status: t atuidntid by t WHO Commission on tSocial Dtminants o Halt Wold HaltOganisation, 2008. As ty sow by mans oconcntation cuvs, alt limitations a in allcountis concntatd among t ousoldswit low incom.

A atu o EUSILC is t inclusion o spcialmoduls tat vay om ya to ya, allowing tang o inomation to b xtndd. Capt 10

by Llks maks us o t spcial modul in 2006tat dalt wit social paticipation. T sultssow tat dincs in t xtnt o

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