Sustainable Household Income in EU Countries Ensuring a Life Out of Poverty

Baláková, Irena; Švecová, Veronika; Ulbrichová, Sabina; Stávková, Jana

doi:10.2478/danb-2024-0009

Abstract

The identification of the structure of sustainable household disposable income in times of economic uncertainty is the aim of this paper. The research provides household income components in order to achieve a sustainable income ensuring life out of poverty. The analyses were based on the EU-SILC 2020 database of primary data (N = 232,816 EU households). The binary logistic regression verified that households capable of generating savings have the highest chances of achieving a sustainable income. There is also a positive influence of the investment income (interests, dividends, rental income), but with a lower impact than expected. On the contrary, the presence of social transfers in income reduces the likelihood of sustainable income. Social income is beneficial to households in poverty but it is essential to ensure that it is properly targeted.

References

Achar, C., So, J., Agrawal, N., Duhachek, A. (2016). What We Feel and Why We Buy: The Influence of Emotions on Consumer Decision-making. Current Opinion in Psychology, 10, 166–170.
Search in Google Scholar Back to article
Bartošová, J., Bína, V. (2018). Differences in income distribution given by the structure of household. Mathematical Methods in Economics, 19–24.
Search in Google Scholar Back to article
Bonatti, G., Ivaldi, E., Soliani, R. (2017). Quality of life in Italian cities: a temporal comparison between before the crisis and after. International Journal of Social Economics, 44(4), 560–574.
Search in Google Scholar Back to article
Branyiczki, R. (2015). Employment, education and other means of reducing poverty. Brussels: European Commission.
Search in Google Scholar Back to article
Burlacu, M. (2016). The Population’ Income, Expenses and Savings as Descriptive Aspects of the Standard of Living. Ovidius University Annals: Series Economic Sciences, 16(2), 175–180.
Search in Google Scholar Back to article
Burns, C., Tobin, P. (2020). Crisis, Climate Change and Comitology: Policy Dismantling Via the Backdoor? Journal of Common Market Studies, 58(3), 527–544.
Search in Google Scholar Back to article
Cartone, A., Battista, L, Postiglione, P. (2024). A new approach for measuring poverty or social exclusion reduction in European NUTS 2 regions. Socio-Economic Planning Sciences, 93.
Search in Google Scholar Back to article
Colgan, B. (2022). EU-SILC and the potential for synthetic panel estimates. Empirical Economics, 64, 1247–1280.
Search in Google Scholar Back to article
Corsi, M., Botti, F., D’Ippoliti, C. (2016). The Gendered Nature of Poverty in the EU: Individualized versus Collective Poverty Measures. Feminist Economics, 22(4), 82–100.
Search in Google Scholar Back to article
D’Agostino, G., Pieroni, L., Scarlato, M. (2020). Social transfers and income inequality in OECD countries. Structural Change and Economic Dynamics, 52, 313–327.
Search in Google Scholar Back to article
D’Albis, Boubtane, E., Coulibaly, D. (2021). Demographic changes and the labor income share. European Economic Review, 131.
Search in Google Scholar Back to article
Dolls, M., Doorley, K., Paulus, A., Schneider, H. (2019). Demographic change and the European income distribution. Journal of Economic Inequality, 17(3), 337–357.
Search in Google Scholar Back to article
Dragoi, D. (2020). Economic Growth versus Economic Development. Atlantic Review of Economics, 3(1), 1–11.
Search in Google Scholar Back to article
Duarte, R., Miranda-Buetas, S., Sarasa, C. (2021). Household consumption patterns and income inequality in EU countries: Scenario analysis for a fair transition towards low-carbon economies. Energy Economics, 104.
Search in Google Scholar Back to article
Ebbinghaus, B. (2021). Inequalities and poverty risks in old age across Europe: The double-edged income effect of pension systems. Social Policy & Administration, 55(3), 440–455.
Search in Google Scholar Back to article
Eurostat (2022). European Union – Statistics on Income and Living Conditions. Retrieved January 5, 2023, from https://ec.europa.eu/eurostat/documents/203647/16195750/EUSILC DOI 2022 release 3.pdf.
Search in Google Scholar Back to article
Eurostat (2021). Glossary: At-risk-of-poverty rate. Retrieved January 9, 2023, from https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Glossary:At-risk-of-povertyrate.
Search in Google Scholar Back to article
European Commission (2011). Income poverty and material deprivation in European countries. Retrieved January 15, 2023, from https://data.europa.eu/doi/10.2785/1144.
Search in Google Scholar Back to article
Fitzgerald, J., Kenny, S., Cermeno, A. L. (2022). Household behaviour under rationing. National Institute Economic Review, 1–21.
Search in Google Scholar Back to article
Gopinath, G. (2020). The Great Lockdown: Worst Economic Downturn Since the Great Depression. Retrieved January 10, 2023, from https://www.imf.org/en/Blogs/Articles/2020/04/14/blog-weo-the-great-lockdown-worst-economic-downturn-since-the-great-depression.
Search in Google Scholar Back to article
Hebák, P., Jarošová, E., Pecáková, I., Plašil, M.,Řezanková, H., Vilikus, O., Vlach, P. (2015). Statistické myšlení a nástroje analýzy dat (2nd ed). Prague: Informatorium.
Search in Google Scholar Back to article
Hofmarcher, T. (2021). The effect of education on poverty: A European perspective. Economics of Education Review, 83.
Search in Google Scholar Back to article
Iacono, R., Ranaldi, M. (2021). The Evolution of Income Composition Inequality in Italy, 1989–2016. Review of Income and Wealth, 69(1), 124–149.
Search in Google Scholar Back to article
Kis, A. B., Gábos, A. (2016). Consistent poverty across the EU. Corvinus Journal of Sociology and Social Policy, 7(2), 3–7.
Search in Google Scholar Back to article
Kluge, A. F., Goldstein, R. T., Vogt, C. (2019). Transfers in an aging European Union. The Journal of the Economics of Ageing, 13, 45–54.
Search in Google Scholar Back to article
Komodromos, M., Abadir, S., Alserhan B. A., Halkias, D. (2022). Applied strategic management by managers in the hotel and tourism industry in Cyprus and Greece during the COVID-19 pandemic. Journal for International Business and Entrepreneurship Development, 14(3), 378–399.
Search in Google Scholar Back to article
Kuitto, K., Madia J. E., Podesta, F. (2022). Public Pension Generosity and Old-Age Poverty in OECD countries. Journal of Social Policy, 52(2), 256–275.
Search in Google Scholar Back to article
Levenko, N. (2019). Perceived uncertainty as a key driver of household saving. International Review of Economics & Finance, 65, 126–145.
Search in Google Scholar Back to article
Młodkowski, P. (2020). Estimating Production Function Before Covid-19 Pandemic in Europe. European Integration Studies, 14, 104–116.
Search in Google Scholar Back to article
Navarro, M., Salverda, W. (2019). Earner Position and Job and Life Satisfaction: Do Contributions to the Household Income have the Same Effect by Gender and Occupations? Journal of Happiness Studies, 2(7), 2227–2250.
Search in Google Scholar Back to article
Nisbet, R., Miner, G. D., Yale, K. (2017). Handbook of Statistical Analysis and Data Mining Applications (2nd ed). Elsevier Science.
Search in Google Scholar Back to article
OECD (2020). How’s Life? 2020: Measuring Well-being. Retrieved January 5, 2023, from https://doi.org/10.1787/9870c393-en
Search in Google Scholar Back to article
Stiglitz, J. E., Fitoussi, J. P., Durand, M. (2019). Measuring what counts: The global movement for well-being. New York: The New Press.
Search in Google Scholar Back to article
Szymborska, H. K. (2019). Wealth structures and income distribution of US households before and after the Great Recession. Structural Change and Economic Dynamics, 51, 168–185.
Search in Google Scholar Back to article
Vanlaer, W., Bielen, S, Marneffe, W. (2020). Consumer Confidence and Household Saving Behaviors: A Cross-Country Empirical Analysis. Social Indicators Research, 147(2), 677–721.
Search in Google Scholar Back to article
Vavoura, C., Vavouras, I. (2022). Sustainable Economic Development in the European Union and COVID-19. Evolutionary and Institutional Economics Review, 19(1), 449–467.
Search in Google Scholar Back to article
Veneri, P., Murtin, F. (2019). Where Are the Highest Living Standards? Measuring Well-Being and Inclusiveness in OECD Regions. Regional Studies, 53(5), 657–656.
Search in Google Scholar Back to article
Vladisavljevic, M., Mentus, V. (2019). The Structure of Subjective Well-Being and Its Relation to Objective Well-Being Indicators: Evidence from EU-SILC for Serbia. Psychological Reports, 122(1), 36–60.
Search in Google Scholar Back to article
Vojtková, M., Šoltes, E. (2018). Work Intensity in Slovakia and its Dependence on Selected Factors. Journal of Applied Economic Sciences, 13(1), 101–112.
Search in Google Scholar Back to article
Weller, C. E., Wenger, J. B. (2017). Can Income Diversification Explain the Growing Entrepreneurship Gap by Age? Forum for Social Economics, 46(2), 145–159.
Search in Google Scholar Back to article
Wirth, H., Pforr, K. (2022). The European Union Statistics on Income and Living Conditions after 15 Years. European Sociological Review, 38(5), 832–848.
Search in Google Scholar Back to article
Wolf, F., Lohmann, H., Bonke, P. (2022). The standard of living among the poor across Europe. Does employment make a difference? European Societes, 24(5), 548–579.
Search in Google Scholar Back to article
Zavras, D. (2021). A cross-sectional population-based study on the influence of the COVID-19 pandemic on incomes in Greece. Aims Public Health, 8(3), 376–387.
Search in Google Scholar Back to article

Sustainable Household Income in EU Countries Ensuring a Life Out of Poverty

Abstract

Paradigm

My account