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Jornadas de Estadstica Aplicada, Universidad de Chimborazo, Riobamba, Ecuador, 10 13th June 2013

European Union Statistics on Income and Living Conditions(EU-SILC)

N. T. Longford, SNTL and UPF, Barcelona, Spain

(sntlnick@sntl.co.uk)

Annual surveys conducted in the countries of the European Union (EU)

Key resource about household well-being

Political agenda: Reduction of poverty

Cross-sectional and longitudinal components

Harmonisation: Similar sampling designs, questionnaires, data processing

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Household income

Combination of several sources: (self-)employment, pension, social trans-fers, inheritance, presents, rents, investments, etc.

Household-level analysis a household shares all resources

Equivalised household size (eHS):

One adult: 1.0; other adults: 0.5; each child 0.3 total.

Equivalised household income (eHI):

eHI = Total income / eHS the key outcome variable

Median eHI, eHI50 estimated with sampling weights

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Household income

Poverty status:

Poor if eHI < S eHI50; not poor otherwise S = 60%

Estimation of the poverty rate

percentage of individuals/households that are poor

as a function ofS

poverty curves

Estimation of the sampling variance (standard error):

Bootstrap (with weights)

Other measures of (financial) poverty:

poverty gap: average shortfall on S eHI50

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Median

7 1 9 4 8 10 5 6 13 11 2 3 14 15 12

6795

7296

7830

9483

9514

9616

9830

10237

11110

11360

12476

12544

13738

14336

15873

Subject

eHI

9879

The weighted sample median. An illustration.

Subjects sorted by eHI and represented by segments

of length proportional to their sammpling weights.

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

7296

12476

12544

9483

9830

10237

6795

9514

7830

9616

11360

15873

11110

13738

14336

Subject

Selections

eHI

0 0 4 2 0 3 0 1 0 1 0 0 2 0 2

An illustration of bootstrap.

Selection with probability proportional to the sampling weight, with replace-

ment.

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Austria 2010

Bootstrap estimate (%)

Frequency

11 12 13

0

20

40

b^

^

Bootstrap estimation of the poverty rate in Austria in 2010.

(Replicate) bootstrap estimates, their mean and 95% conf. interval (dots).

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10 20 30 40

1.2

1.4

1.6

Austria

eHI (2004)

e

HI(2010/2004)

5 10 20 50

1.2

1.4

1.6

Multiplicative scale (x)

eHI (2004)

e

HI(2010/2004)

Bootstrap replicate estimates of the changes in eHI from 2004 to 2010 inAustria.

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20 40 60 80 100

0

10

20

30

2004

Poverty threshold (%)

P

overtyrate(%)

FILUISFR DKIENOAT SEBE

ESPT GRIT

EE

NOIS LUDK

ATSEFI FR

BE

IT ESPTEEGRIE

20 40 60 80 100

0

10

20

30

2010

Poverty threshold (%)

P

overtyrate(%)

LUATFIIS BEFRSENO PTEEDKGR IEIT

ES

NOISAT

SEFI FRDKBE

EELUGRIT

PTESIE

The estimated poverty curves of the countries in EU-SILC in 2004 and 2010.

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Poverty indexes

Index: a single value national summary

Example

Poverty gap: The shortfallfor a household is defined as (eHI50 S eHI)+ zero for households with income about the threshold

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