Study of Poverty in Regions of Europe Using a Multinomial Poverty Line

  1. Rodríguez Avi, José 1
  2. Rodríguez-Reinoso, José María
  1. 1 Department of Statistics and Operational Research. UNIVERSITY OF JAÉN
Journal:
Estudios de economía aplicada

ISSN: 1133-3197,  1697-5731

Year of publication: 2023

Issue Title: Socially Responsible Investment and Sustainable Finance: How can economics – finance research contribute to the sustainable development of the planet?

Volume: 41

Issue: 3

Type: Article

DOI: 10.25115/SAE.V41I3.9314 DIALNET GOOGLE SCHOLAR

More publications in: Estudios de economía aplicada

Abstract

Measuring poverty is crucial for designing public policies aimed at reducing social inequality and improving living conditions for the population. One common indicator, particularly in developed economies, is the poverty line, which is based on the income necessary to cover minimum expenses for a dignified and adequate life. This includes factors such as the cost of food, housing, transportation, and other essential goods and services. The calculation of the poverty line considers the consumption unit, which can refer to each individual (per capita) or include weighting based on the number of household members and their age. The poverty line is a relative indicator, meaning it serves as a reference point, and it results in a binary model where a household is classified as either poor or non-poor. Additionally, data obtained from surveys such as the European Union Statistics on Income and Living Conditions (EU-SILC) are used to calculate the poverty line. This study proposes two main approaches. Firstly, the construction of multidimensional poverty lines (moving from a binary to a multinomial framework), including the definition of related auxiliary indicators. Secondly, the use of secondary data for the calculations, obtained from Eurostat, where the per capita income or weighted per capita income, as well as the per capita actual individual consumption, are employed. This allows for comparisons between NUTS3 regions and analysis of their evolution over time in Europe.

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Data source: Dialnet