INDICATORS

9. POPULATION BELOW POVERTY LINE AND INCOME INEQUALITY
Definition:
1) 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.
2) 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.
Calculation:
1a) 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.
1b) Children in poverty: percentage of children (out of all children) living in households
with an equivalised disposable income below the “national poverty line” (i.e. below 60%
of the national median equivalised disposable income). Presented for age groups 0–4, 5–9,
10–14 and 15–17. 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).
Notes: Age groups: total, 0–17, 18–64, 65+. 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-riskof
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). “Population at risk of poverty” and “Income inequality” are EU structural
indicators
10. LIFE EXPECTANCY
Definition: Life expectancy at birth is a summary measure of the age-specific all cause
mortality rates in an area in a given period. It is the average number of years a new-born
baby would survive, were he or she to experience the particular area’s age-specific mortality
rates for that time period throughout his or her life. Life expectancy can be calculated
starting at different ages. Here we present minimally: 1) Life expectancy at birth and 2) Life
expectancy at age 65.
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