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[C] - Absolute poverty
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Description
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The ISTAT estimate of absolute poverty defines as poor a family with a consumption expenditure lower than or equal to the monetary value of a basket of goods and services considered as essential to avoid severe forms of social exclusion. The monetary value of the basket of absolute poverty is reviewed every year in the light of trend in prices and compared to the levels of spending on household consumption. To summarise information on different poverty aspects (spread, gravity) two indices are calculated. The first is the proportion of poors (incidence), that is the ratio between the number of households (individuals) in poverty and the number of resident households (individuals). The second is the mean poverty gap (intensity), measuring 'how poors are the poors', that is, in percentage terms, the difference between the mean consumption expenditures of poor households and the monetary value of the basket of absolute poverty.
The source of the processing is the Household Budget Survey (which replaced the Household Consumption Survey in 2014) which, starting from the year 2022, adopted the new COICOP 2018 expenditure classification; furthermore, changes have been made regarding the reference basket of goods and services considered essential to avoid severe forms of social exclusion and the methodology for calculating the poverty thresholds has also changed. The substantial changes introduced have made it necessary to reconstruct the historical series of absolute poverty starting from 2014. Time comparisons between the 2022 estimates and those of previous years can, therefore, be made only using reconstructed data.
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Eurostat type of process classification
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Statistical compilation other than National Account
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First production year
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2014
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