Archive:Living standard statistics
Living standards, as measured by the median equivalised disposable income, fell in 15 Member States in 2010 compared with a year earlier, after adjusting for inflation. In the vast majority of Member States the median income fell most for the unemployed and least for people in employment. Income decreased in the bottom quintile of the income distribution in most Member States. In 15 Member States, income inequality increased because income in the top quintile decreased less or increased more than in the bottom quintile. When looking at households’ material conditions, in 2011 around 10 % of the EU population reported that they could not afford a meal with meat, chicken, fish or a vegetarian equivalent every second day. This represents an increase of 1 percentage point (pp) compared with 2010. All figures are based on the latest EU-SILC (Statistics on Income and Living Conditions) data collected in 2011.
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Main statistical findings
Household disposable income corresponds to income from market sources and cash benefits after deduction of direct taxes and regular interhousehold cash transfers. It can be considered as the income available to the household for spending or saving. The living standards achievable by a household with a given disposable income depend on how many people and of what age live in the household.
Household income is thus ‘equivalised’ i.e. adjusted for household size and composition so that the incomes of all households can be looked at on a comparable basis. Equivalised disposable income is an indicator of the economic resources available to a standardised household. For a lone-person household it is equal to household income. For a household comprising more than one person, it is an indicator of the household income that would be needed by a lone person household to enjoy the same level of economic wellbeing. This income concept, based on the assumption of income sharing within the household, and of economies of scale resulting from living together, is used in this article.
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