Monetary poverty and income inequality indicators were accepted by the Laeken European Council on December 2001, with an aim to evaluate and observe EU Member state progress in decreasing social exclusion. These indicators are relative and they are derived from average income level. The indicators characterise relative instead of absolute at-risk-of poverty among population.

Definitions

Persons with disposable income below at-risk-of-poverty threshold or persons subjected to severe material deprivation or employed in low intensity work.

It is considered that person is subjected to severe material deprivation is it is lacking at least 4 items among the 9 following: 1) to pay rent or utility bills, 2) keep home adequately warm, 3) face unexpected expenses, 4) eat meat, fish or equivalent vegetarian meal every second day, 5) a week holiday away from home, or could not afford (even if wanted to): 6) a car 7) a washing machine, 8) a colour TV, 9) a telephone.

The work intensity of the household refers to the number of months that all working age household members have been working during the income reference year as a proportion of the total number of months that could theoretically be worked within the household. Individuals are classified into five work intensity categories that range from WI=0 (jobless household), 0<WI<1, 0<WI<0.5 and 0.5≤WI<1 to WI=1 (full work intensity). It is considered that person is living in household with low work intensity if WI≤0.2. 

Share of persons with an equivalised disposable income below 60% of the national median equivalised disposable income.

The work intensity of the household refers to the number of months that all working age household members have been working during the income reference year as a proportion of the total number of months that could theoretically be worked within the household.

Individuals are classified into five work intensity categories that range from WI=0 (jobless household), 0<WI<1, 0<WI<0.5 and 0.5≤WI<1 to WI=1 (full work intensity).

60% of disposable income median recalculated per equivalent consumer.

A person aged 0–17, as well as persons aged 18–24, if economically inactive and living with at least one of the parents.

Cash income from labour, employee income in kind received by using company car for private needs estimated in cash, 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 aged under 16, income from property rental, receipts for tax adjustments from State Revenue Service (for business activities, eligible costs–education, medical treatment etc.).

From this total amount of income the following are deducted: real estate tax, amount of money regularly given to other households, amount paid to State Revenue Service due to unpaid or insufficiently paid income tax.

Household disposable income divided by its "equivalent size", which is calculated with the help of the so-called "modified OECD" equivalence scale.

This scale gives a weight of 1.0 to the first adult, 0.5 to any other household member aged 14 and over and 0.3 to each child aged less than 14.

Characterizes inequality of income. It varies from 0 to 100. Gini coefficient is 0, if there is absolute equality of income (i.e., all population have the same income), but the closer it gets to 100, the greater is inequality of income.

Indicators adopted by the Laeken European Council in December 2001 in order to evaluate and observe progress of the EU Member States in decreasing the social exclusion. These indicators include at-risk-of-poverty rate, Gini coefficient, etc. indicators.

Households of various types have different consumption needs and not always they are directly proportional to the number of persons in household.

Three persons do not need three times wider useful floor space and three times more consumer durables. Consumption differs also between children and adults.

This phenomenon hampers comparison of the data among households of various types; therefore equivalence scales are used, as a result data are calculated per number of equivalent consumers in household, and that ensures comparability of the data among various households. 

European Statistical System is using so-called "modified OECD* equivalence scale" – it gives weight of 1.0 to the first adult, 0.5 to any other household member aged 14 and over and 0.3 to each child aged less than 14. The number of equivalent consumers in household is acquired by summing the weights given to each household member.

*OECD – Organisation for Economic Co-operation and Development.

Several persons living in one dwelling and sharing expenditures or one person having separate housekeeping.

One fifth (20%) of the number of surveyed households grouped in increasing sequence according to the disposable income per one household member.

Percentage difference between the at-risk-of-poverty threshold and median equivalent disposable income of persons below the same threshold.

Ratio of total equalised disposable income received by the 20% of the country’s population with the highest equalised disposable income (top quintile) to that received by the 20% of the country’s population with the lowest equalised disposable income (bottom quintile).

Data availability

Dissemination format and Release calendar

 

News releases


Date Title
19.12.2017 Household disposable income in 2016

Publications

Download CSB publications on various time periods (starting from 2007) in section E-publications and subscribe for paper publications in section Publications.

Data on monetary poverty indicators are published also in the statistical yearbooks and monthly bulletins.

Theme Title Release datesort icon ZIP/PDF
EU-SILC survey Income and living conditions in Latvia in 2016 09.05.2017
EU-SILC survey Income and living conditions in Latvia in 2015 05.05.2016
EU-SILC survey Material deprivation in Latvia in 2015 (only in Latvian) 13.04.2016
EU-SILC survey Income and living conditions in Latvia 2014 08.05.2015
EU-SILC survey Material deprivation in Latvia 2013 (only in Latvian) 30.06.2014
EU-SILC survey Income and living conditions in Latvia 2013 26.05.2014
EU-SILC survey Material deprivation in Latvia in 2012 (only in Latvian) 28.06.2013
EU-SILC survey Income and living conditions in Latvia 2012 11.06.2013
EU-SILC survey Material Deprivation of Latvia in 2011 (only in Latvian) 20.04.2012
EU-SILC survey Material Deprivation of Latvia in 2010 (only in Latvian) 30.06.2011
EU-SILC survey Material Deprivation of Latvia in 2009 (only in Latvian) 30.06.2010
EU-SILC survey Material Deprivation of Latvia in 2007 (only in Latvian) 30.06.2009

Classifications

In the survey Community Statistics on Income and Living Conditions (EU-SILC) following classifications are used:

  1. International Standard Classification of Occupations (ISCO-08);
  2. Statistical Classification of Economic Activities (NACE Rev. 2);
  3. International Standard Classification of Education (ISCED).

A Classification Catalogue with classification codes and their explanations has been published on the CSB website.

Customised data sets

If you would like to obtain statistical data that are not available in publications or in the CSB online data base, please send us an information request:
 - postal mail: 1 Lāčplēša Street, Riga, Latvia, LV-1301;
 - e-mail: info [at] csb [dot] gov [dot] lv;
 - visiting Information centre.

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Data collection

Survey method and source data

Monetary poverty and income inequality indicators are acquired with the help of Community Statistics on Income and Living Conditions (EU-SILC). One of the main study objects of the EU-SILC is annual income of a household – their composition and level.

In order to acquire information four questionnaires were developed: Household Register, Household Questionnaire Form and Individual Questionnaire Form. Each questionnaire has its own aim and information in each questionnaire does not overlap with information in other forms. Fourth form is a module questionnaire that each year aims at researching different theme.

Household Register is questionnaire, which includes general information on each household member. It is mainly demographic information on persons living in the household, as well as on those persons, who have left the household.

Household Questionnaire Form includes questions concerning the household generally. It includes following questions:

  1. housing and housing conditions;
  2. housing costs;
  3. economic situation of the household;
  4. total household income;
  5. inter-household transfers;
  6. agricultural production in household.

Individual Questionnaire Form is filled in on each household member aged 16 and over. It includes questions on:

  1. employment;
  2. income;
  3. education;
  4. health.

Survey is based also on data of the State Revenue Service on natural persons/taxpayers and State Social Insurance Agency data on state pensions and benefits.

Statistical population

The basic unit of EU-SILC survey is persons living in private households. Survey does not include collective households (old peoples’ homes, boarding schools for disabled children, student hostels, hotels, barracks, hospitals, sanatoriums, prisons, etc.).

During the survey information was obtained on whole household as well as on each household member aged 16 and over. Households belonging to longitudinal section are surveyed for several years (maximum 4 years). In Latvia four-year rotation panel is used and all household members, who in the first survey year were at age of at least 14, are sample respondents.

Sample size

Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Sample size of EU-SILC 5 813 6 018 6 717 7 042 7 610 8 151 8 463 8 572 8 510 8 209 8 008 8 022
Completed questionnaire sets 3 843 4 315 4 471 5 196 5 797 6 255 6 599 6 499 6 309 6 125 6 113 6 042
Individual interviews (persons) 7 913 9 071 9 270 10 910 12 207 12 999 13 503 12 964 12 442 11 929 11 726 11 637
Non-response rate 33.9% 28.3% 33.4% 26.2% 23.8% 23.3% 22.0% 24.2% 25.9% 25.4% 23.7% 24.7%

Statistical processing

Calculation methods

EU-SILC data are extrapolated on all private household and household members living in these households. Weighting process includes application of design weights, which are corrected by actual response rate. Additional data are calibrated by population sex and age.

Data revision

Published data are not revised.

Comparability

Comparability over time

Data are available since 2005.

International comparability

Eurostat

Description of the Eurostat methodology is available from http://ec.europa.eu/eurostat/web/income-and-living-conditions/methodology

Statistical Office of the European Union (Eurostat) on its webpage publishes information on monetary poverty and income inequality indicators in EU Member States. It can be found in http://ec.europa.eu/eurostat/data/database in section Population and social conditions/ Living conditions and welfare/ Income and living conditions/Income distribution and monetary poverty.

Contact persons on methodology

Name Surname Phone number Position Email
Viktors Veretjanovs 67366609 daļas vadītājs Viktors.Veretjanovs@csb.gov.lv

Last update

19.01.2017

Household budget and household consumption expenditure

Household disposable income

Material deprivation

Number of private households

Explanation of symbols

-

Magnitude zero

0

Less than half of the unit employed

...

Data not available or too uncertain for presentation

X

Figure not applicable because column heading and stub line make entry impossible, absurd or meaningless

.

Data not released for confidentiality reasons

If data are absolute numbers

0

Magnitude zero