On population income and living conditions in 2010

28.04.2011

When carrying out a survey “Community Statistics on Income and Living Conditions” (EU-SILC) in 2010 Central Statistical Bureau surveyed 6.3 thousand households. One of the questions included in the survey was on household’s ability to pay for usual necessary expenses.

Survey data show that in 2010 85% of households (82% in 2009) paid for usual necessary expenses with difficulty: 23% of them answered that they pay for the usual necessary expenses with great difficulty (in 2009 – 18%), 32% with difficulty (in 2009 – 31%) and 30% with some difficulty (in 2009 - 33%). 13% of the households mentioned that they pay for the usual necessary expenses fairly easily (in 2009 – 16%) and only 1.9% of the households were able to say that they cover these expenses easily or very easily (in 2009 – 2.9%).

Answers to the question on difficulties to pay for usual necessary expenses in 2010 (in per cent)

In the survey households were asked to name the lowest sum of monthly income, which on their opinion is needed to be able to pay for the usual necessary expenses. To acquire comparable data on households of various types, income sums were calculated per equivalent consumer1, considering the size and structure of the household. Data of the EU-SILC survey show that in comparison with 2009 household income has diminished considerably, and thus it becomes more difficult to pay for usual necessary expenses. In 2010 household disposable income2 per equivalent consumer comprised only LVL 324 (in 2009 – LVL 389). Moreover, households mentioned that one equivalent consumer needs at least LVL 387 to pay for usual necessary expenses (LVL 419 in 2009). Consequently, in 2010 every month households needed on average LVL 63 more (LVL 30 in 2009). The chart below shows the relation between household monthly disposable income and sum of money needed to pay for usual necessary expenses.

Household disposable income over lowest net income needed to pay for usual necessary expenses in 2010
(LVL per equivalent consumer monthly)

The highest sums of income needed to pay for usual necessary expenses were indicated by the couples with one child (LVL 474 per equivalent consumer) and households of single person aged 16-64 years (LVL 409). But the lowest sums, in turn, were pointed out by the households of single persons aged 65 and more years (LVL 268 per month), as well as by couples with three and more children (LVL 316 per equivalent consumer monthly).

The highest need for money to pay for usual necessary expenses had households of one adult with children. Calculating per equivalent consumer, these households every month needed LVL 115 more.

According to the survey data, income of 71% of households in Latvia was below the minimum monthly income needed to pay for usual necessary expenses. The worst situation was observed in households of single persons aged 65 more years. Income of 88% of these households was below minimum monthly income needed to pay for usual necessary expenses. Also income of most part of the households of one adult with children (81%) and households of couples with three and more children (76%) was below this sum. Comparatively better situation was observed among households of couples with two children. The share of the households, income of which was below minimum monthly income needed to pay for usual necessary expenses, was the lowest among these households (61%).

 

Prepared by Income and Living Conditions Statistics Section
Tel. 67366727
Liene Āboliņa


Methodological explanations

Child – persons aged less than 18 years.

1 Equivalent consumer is determined when household disposable income is divided with equivalent size of the household, using the scale of the Organisation of Economic Co-operation and Development (OECD) – the first adult is equated with weight 1.0, every following households member from age 14 and older - 0.5, but every child younger than 14 - 0.3.

2 Disposable income was calculated taking into account the income received in 2009. This is cash income from labour; income or losses received from self-employment; received pensions and benefits; regular material assistance from other households; profit from interests of deposits, dividends, shares; income received by children under age of 16; income from property rental; amount received from State Revenue Service (SRS) due to overpaid income tax (for business activities, eligible costs – education, medical treatment etc.). Of this total amount of income real estate tax is deducted as well as amount of money regularly given to other households, amount paid to State Revenue Service due to unpaid or insufficiently paid income tax.