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Reference metadata describe statistical concepts and methodologies used for the collection and generation of data. They provide information on data quality and, since they are strongly content-oriented, assist users in interpreting the data. Reference metadata, unlike structural metadata, can be decoupled from the data.

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Poverty and social exclusion (tipspo)

Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Eurostat, the statistical office of the European Union

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The main source for the compilation of statistics on income, social inclusion and living conditions is the EU-Statistics on Income and Living Conditions (EU-SILC). EU-SILC collects timely and comparable multidimensional microdata on income, poverty, social exclusion and living conditions.

The EU-SILC collection is a key instrument for providing information required by the European Semester and the European Pillar of Social Rights, and the main source of data for microsimulation purposes and flash estimates of income distribution and poverty rates. For more information, please consult EU social indicators.

The indicator People at risk of poverty or social exclusion and its sub-populations (People at risk of poverty after social transfers, Severely materially and socially deprived people and People living in households with very low work intensity) are part of the set of MIP auxiliary indicators.

21 January 2025

The definitions of the MIP relevant indicators are the following:

  • People at risk of poverty or social exclusion (% of total population) - Persons who are at risk of poverty, or severely materially deprived, or living in households with very low work intensity. Persons are only counted once even when they are present in more than one of the three sub-indicators.
  • People at risk of poverty after social transfers (% total population) - Persons with an equalised disposable income below the risk-of-poverty threshold, which is set at 60 % of the national median equalised disposable income (after social transfers) as a % of total population.
  • Severely materially and socially deprived people (% total population) - Persons having living conditions which are severely constrained by a lack of resources, such that they experience an enforced lack of at least 7 out of the following 13 deprivation items: i) capacity to face unexpected expenses, ii) capacity to afford paying for one week annual holiday away from home, iii) capacity to being confronted with payment arrears (on mortgage or rental payments, utility bills, hire purchase instalments or other loan payments), iv) capacity to afford a meal with meat, chicken, fish or vegetarian equivalent every second day,  v) ability to keep home adequately, vi) have access to a car/van for personal use, vii) replacing worn-out furniture, viii) having internet connection, ix) replacing worn-out clothes by some new ones, x) having two pairs of properly fitting shoes (including a pair of all-weather shoes), xi) spending a small amount of money each week on him/herself, xii) having regular leisure activities, or  xiii) getting together with friends/family for a drink/meal at least once a month. 
  • People living in households with very low work intensity (% of population aged 0-64) - Persons aged 0-64, living in households where the adults (aged 18-64) worked less or equal to 20% of their total work potential during the past year. Students aged 18-24, people who are retired or who receive any pension (except survivor’s pension), people in the aged 60-64 who are inactive and living in a household where the main income is pensions, are excluded. 

 

Income

The total disposable income of a household is calculated by adding together the personal income received by all household members plus income received at household level. Missing income information is imputed.

Disposable household income includes:

  • all income from work (employee wages and self-employment earnings);
  • private income from investment and property;
  • transfers between households;
  • all social transfers received in cash including old-age pensions.

Note: Some of the income components are mandatory only from 2007: Imputed rent, Interest paid on mortgage, Employer's social insurance contributions. From the 2007 year on, all countries have to supply gross income information.  

The current definition of total household disposable income used for the calculation of EU-SILC based indicators excludes:

  • imputed rent - i.e. money that one saves on full (market) rent by living in one's own accommodation or in accommodation rented at a price that is lower than the market rent,
  • non monetary income components, in particular value of goods produced for own consumption, social transfers in kind and non-cash employee income except company cars.

 

Household definition

A 'private household' means "a person living alone or a group of people who live together in the same private dwelling and share expenditures, including the joint provision of the essentials of living". EU-SILC implementing Regulation No 1983/2003 on updated definitions, defines households in terms of sharing household expenses and (for non-permanent members) in terms of duration of stay and (for temporarily absent members) in terms of duration of absence.

Household type:

A common classification was developed by Eurostat for use in data collection surveys including ECHP, LFS, HBS and EU-SILC as well as the subsequent presentation of indicators relating to income, housing, education, healthcare, etc. Rather than focusing on "couples" and/or "families", the classification is constructed by reference to the numbers of adult members, their age and gender, and the numbers of dependent children living with them.

For further information see the respective metadata file on Income and living conditions (ilc).

Households and household members.

The EU-SILC target population in each country consists of all persons living in private households. Persons living in collective households and in institutions are generally excluded from the target population.

The data published under the MIP domain present data for each EU Member State, as well as euro area (EA) and the European Union as a whole. 

The various statistics are generally presented on an annual basis (the survey year, whatever the underlying income reference period)

The income reference period in EU-SILC is a fixed 12-month period (such as the previous calendar or tax year) for all countries except IE for which the survey is continuous and income is collected for the last twelve months. Other data is typically collected on the date of the survey.

Regulation 1177/2003 defines the minimum effective sample sizes to be achieved, i.e. the actual sample sizes will have to be larger to the extent that the design effect exceeds 1.0 and to compensate for all kinds of non-response. Furthermore, the sample size refers to the number of valid households which are households for which, and for all members of which, all or nearly all the required information has been obtained. The allocation of the effective sample size is done according to the size of the country and ensuring minimum precision criteria for the key indicator at national level (absolute precision of the at-risk-of-poverty rate of 1%).

Percentage of population and 3 year change in percentage points. 

Estimates at aggregate level are calculated as the population-weighted arithmetic average of individual national figures.

ECHP:

From 1994 to 2001, the major data source in this domain was the European Community Household Panel (ECHP). Between 2001 and 2005 there was a transitional period, during which national data were harmonised to compute the indicators in this domain.

EU-SILC:

In most cases participant countries launch EU-SILC from scratch with integrated cross-sectional and longitudinal elements (this is the Eurostat recommendation). Other countries use a combination of registers and interviews. Others seek to adapt existing national sources.

Precision requirements are set via the prescription of minimum effective sample sizes that are specified in the EU-SILC framework regulation 1177/2003. They should be carefully designed to ensure representativity - and are to be increased by participant countries to the extent that their national sample is not determined on a simple random basis, or to reflect likely levels of non-response, or to reflect any specific national requirements. Separate values are specified for the cross-sectional and longitudinal elements.

The minimum effective sample size for the cross-sectional element covers some 273,000 individuals living in 130,000 private households (LU: 3250, DE: 8250).

Annual.

Indicators based on national SILC data are published on Eurostat website soon after its delivery and acceptance. In general it takes place in the course of year N+1 (where N = year of data collection) in case of indicators based on cross-sectional data and starting from the second half of year N+1 in case of indicators based on longitudinal data.

The indicators are associated with a high level of comparability.

EU-SILC aims at ensuring standardisation of the concepts, implementation and process. It is based on a common framework defined by harmonised lists of primary and secondary variables, common concepts, a recommended design, common requirements (for imputation procedures, weighting, sampling errors calculation) and classifications aiming at maximising comparability of the information produced.

For further information see the respective metadata file on Income and living conditions (ilc).

Comparability over time is ensured by a common data source (EU-SILC) since 2005.