Eurostat, the statistical office of the European Union

E2: Environmental statistics and accounts; sustainable development

e-mail contact : ESTAT-SDG-MONITORING@ec.europa.eu

The indicator is part of the EU Sustainable Development Goals (SDG) indicator set. It is used to monitor progress towards SDG 10 on reducing inequality within and among countries and SDG 1 on ending poverty in all its forms everywhere.

SDG 10 among other things, calls for nations to adapt polices and legislation to increase the income of the bottom 40 % of the population and to reduce inequalities based on income, sex, age, disability, race, class, ethnicity, religion and opportunity. SDG 1 calls for an eradication of extreme poverty and for a reduction of relative poverty over the next 15 years. It envisions shared prosperity, a basic standard of living and social protection benefits for people everywhere, including the poorest and most vulnerable.

The indicator is also included as main indicator in the Social Scoreboard for the European Pillar of Social Rights. The European Pillar for Social Rights, adopted in 2017, sets out a number of key principles to support fair and well-functioning labour markets and welfare systems. Those principles address topics related to inequality, by tackling both inequality of outcomes (income and wealth inequality) and inequality of opportunities: from wage-setting to social protection systems (including minimum income), gender equality, enabling social services, childcare and support to children, old-age income, health care and access to housing.

While GDP per capita is used to measure the economic performance of a country, gross household disposable income provides an indication of the average material well-being of people. The indicator therefore measures whether the EU Member States are converging in terms of people's incomes.

The indicator reflects the purchasing power of households and their ability to invest in goods and services or save for the future, by accounting for taxes and social contributions and monetary in-kind social benefits. It is calculated as the adjusted gross disposable income of households and Non-Profit Institutions Serving Households (NPISH) divided by the purchasing power parities (PPP) of the actual individual consumption of households and by the total resident population.
The values are also offered as an index calculated in relation to the European Union average set to equal 100. If the index of a country is higher than 100, this country's level of adjusted gross disposable income of households per person is higher than the EU average and vice versa. Please note that this index is intended for cross-country comparisons rather than for temporal comparisons.
Finally, the disparities indicator offered for the European Union is calculated as the coefficient of variation of the national figures. This time series offers a measure of the convergence of household income between the Member States of the EU.

PPS (current prices), index EU27_2020 = 100 and coefficient of variation

Calendar year.

The indicator is produced according to the high-level quality standards of European Statistics. Details on accuracy can be found in the metadata of the source datasets (see link to related metadata).

ESS

Data source: European Statistical System (ESS)
Data provider: Eurostat, the statistical office of the European Union, based on data reported by the countries.

Every year

Indicator is updated annually. Complete and updated ESS data release information can be accessed via Eurostat release calendar.

T+1 year

New data points are disseminated within one year after the reference year.

> 75% EU MS and EU aggregate

Data are presented for all EU Member States except Bulgaria, Malta and Romania; plus Norway, Switzerland, Serbia and Türkiye.

All EU MS

Data are comparable between all presented EU Member States respectively other presented countries.

> 10 years

Presented time series (including EU aggregates) starts in 2000.

> 4 data points

Length of comparable time series without methodological break is longer than 4 data points.

However, caution is required when PPP based indicators are used for temporal comparison: In essence, PPPs are spatial price level indicators, and thus primarily suitable in comparisons referring to several geographical locations at a given point in time.

Analysis of indicator is presented in Eurostat's annual monitoring report on Sustainable development in the EU (progress towards SDGs in the EU context).

see table  sdg_10_20

Eurostat dedicated section on SDGs: http://ec.europa.eu/eurostat/web/sdi/overview

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