The magnitude and direction of changes in age-specific at-risk-of-poverty rates: an analysis of patterns of poverty trends in Europe in the mid-2010s

Abstract

The European Union’s at-risk-of-poverty threshold is set at 60 per cent of national median disposable equivalent income. Changes in median income therefore shift the threshold, which is likely to affect at-risk-of-poverty rates. This effect is likely to vary across population subgroups due to, for instance, connectedness to the labour market. This exploratory study investigates whether there are typical patterns related to changes in age-specific at-risk-of-poverty rates. The study uses European Union Statistics on Income and Living Conditions microdata and focusses on the development of poverty rates in 30 European countries in the mid-2010s. Results show that especially the old-age poverty rates followed patterns that were different from those of child or working-age poverty rates. There were differences between age groups regarding both the magnitude and direction of at-risk-of-poverty rates. Additionally, the association between changes in at-risk-of-poverty rates and changes in poverty thresholds, income and employment significantly differs between the older population and the two other age groups.

What it means to be poor: dimensions of economic hardship among older people living in poverty across Europe

“…It is important to bear in mind that the ability to pay for usual and unexpected expenses is Income poverty is a relative measure, and whether or not someone is defined as poor also depends on changes in the national income level. Future studies should therefore look at changes in hardship, as changes in the poverty threshold have a greater impact on poverty rates in older people than in other age groups (Ilmakunnas 2022). Low-income households are particularly affected by changes not only in incomes but also in consumer prices -consider the high inflation in energy and food prices at the time of writing in 2023 (Menyhért 2022).…”

“…The economic wellbeing of older people is most commonly defined and measured through income poverty and material deprivation. Both are regularly monitored by the European Union (EU) (European Commission 2012, 2021b, and they have also received extensive academic research (Ebbinghaus 2019(Ebbinghaus , 2021Gabriel et al 2015;Ilmakunnas 2022). Income poverty is typically measured as income that falls below a poverty threshold of 60 per cent of the national median income.…”

Poverty in old age in times of COVID-19—Empirical results from Austria

“…Prior to touching on the current state of research in the pandemic, we briefly present general findings on poverty in old age. It should be mentioned at the outset that even within Europe the at-risk-of-poverty rate 1 for older (the age of 65+ is usually assumed) people varies widely ( 20 ), as pension systems differ considerably due to specific national designs of multi-pillar pension systems ( 21 ). Coupled with social benefits, differences in accessibility (e.g., due to costs) or availability of health care, housing, etc., the life situation of older people living in poverty varies at the national and even local level.…”