SDG 10 - Reduced inequalities (statistical annex)
Reduce inequality within and among countries (statistical annex)
Data extracted in August 2018
Planned article update: September 2019
This article provides an overview of statistical data on SDG 10 ‘Reduced inequalities’ in the European Union (EU). It is based on the set of EU SDG indicators for monitoring of progress towards the UN Sustainable Development Goals (SDGs) in an EU context.
This article is part of a set of statistical articles, which are based on the Eurostat publication ’Sustainable development in the European Union — Monitoring report - 2018 edition’. This report is the second edition of Eurostat’s series of monitoring reports on sustainable development, which provide a quantitative assessment of progress of the EU towards the SDGs in an EU context.
Inequality of income distribution
Inequality of income distribution is measured by the ratio of total equivalised disposable income received by the 20 % of the population with the highest income (top quintile) to that received by the 20 % of the population with the lowest income (lowest quintile). Equivalised disposable income is the total income of a household (after taxes and other deductions) that is available for spending or saving, divided by the number of household members converted into equalised adults. Data presented in this section stem from the EU Statistics on Income and Living Conditions (EU-SILC).
Inequality of income distribution in the EU has remained rather stable during the past decade. The average annual growth rate in the EU-27 amounted to 0.4 % between 2005 and 2016 and to 0.8 % in the short-term period between 2011 and 2016. The ratio remained unchanged over the past three years.
This indicator measures the income share received by the bottom 40 % of the population (in terms of income). The income concept used is the total disposable household income, which is the total income of a household (after taxes and other deductions) that is available for spending or saving. Data presented in this section stem from the EU Statistics on Income and Living Conditions (EU-SILC).
The income share of the bottom 40 % of the population in the EU-27 fell by 0.3 % per year on average between 2005 and 2016. The decrease was less pronounced in the short-term period, with an annual average decline of 0.2 %. This indicates that on average, total incomes in Member States have grown more strongly than those of the poorer population.
Relative median at-risk-of-poverty gap
The relative median at-risk-of-poverty gap helps to quantify how poor the poor are by showing the distance between the median income of people living below the poverty threshold and the threshold itself, expressed in relation to the threshold. This threshold is set at 60 % of the national median equivalised disposable income of all people in a country and not for the EU as a whole. Data presented in this section stem from the EU Statistics on Income and Living Conditions (EU-SILC).
As shown in Figure 5, the poor have become poorer in the EU over time. Between 2005 and 2016, the relative median at-risk-of-poverty gap of the EU-27 grew by an average of 0.6 % per year. The short-term growth between 2011 and 2016 was much stronger, at an average of 1.8 % per year.
Purchasing power adjusted GDP per capita
GDP per capita is calculated as the ratio of GDP to the average population in a specific year. Basic figures are expressed in purchasing power standards (PPS) , which represents a common currency that eliminates differences in price levels between countries to allow meaningful volume comparisons of GDP. The disparities indicator for the EU is calculated as the coefficient of variation of the national figures.
Figure 7 shows that economic disparities between Member States have reduced over time, with most of the decline happening in the pre-crisis years. The coefficient of variation fell by an average of 1.0 % per year between 2002 and 2017. In the short-term period, the coefficient of variation remained more stable and the average annual decrease of 0.4 % can be attributed to the decline in 2016 and 2017.
Adjusted gross disposable income of households per capita
This 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. The disparities indicator for the EU is calculated as the coefficient of variation of the national figures.
Figure 9 shows that based on the adjusted disposable income of households, per capita inequalities between EU countries have decreased over time. Between 2001 and 2016, the coefficient of variation fell by 2.9 % per year on average. In the short-term period since 2011, the decrease has been slightly stronger, at an average of 3.3 % per year.
This indicator shows the number of first-time asylum applicants per million inhabitants and the number of positive first instance decisions per million inhabitants. A first-time applicant for international protection is a person who lodged an application for asylum for the first time in a given Member State. First instance decisions are decisions granted by the respective authority acting as a first instance of the administrative/judicial asylum procedure in the receiving country. The source data are supplied to Eurostat by the national Ministries of Interior and related official agencies.
The number of first-time asylum applicants has increased considerably since 2008, despite a sharp decline in 2017. In absolute terms, 4.3 times more asylum seekers applied for international protection in the EU in 2017 than in 2008. The number of positive first instance decisions was even 7.6 times higher in 2017 compared with 2008 (in absolute terms).
More detailed information on EU SDG indicators for monitoring of progress towards the UN Sustainable Development Goals (SDGs), such as indicator relevance, definitions, methodological notes, background and potential linkages, can be found in the introduction of the publication ’Sustainable development in the European Union — Monitoring report - 2018 edition’.
- The purchasing power standard (PPS) is an artificial currency unit. Theoretically, one PPS can buy the same amount of goods and services in each country. However, price differences across borders mean different amounts of national currency units are needed for the same goods and services depending on the country. PPS are derived by dividing any economic aggregate of a country in national currency by its respective purchasing power parities. PPS is the technical term used by Eurostat for the common currency in which national accounts aggregates are expressed when adjusted for price level differences using PPPs. Thus, PPPs can be interpreted as the exchange rate of the PPS against the euro.