AT WORK, AND POOR? A COMPARISON OF THE CZECH AND SLOVAK WORKING POOR POPULATIONS IN THE EU-SILC SURVEY Šárka Šustová, Martin Zelený, Eliška Zykmundová Czech Statistical Office, Household Surveys Department This contribution is a part of a wider research project on minimum wage and its influence CZECH STATISTICAL on the OFFICE economic Na and padesátém social 81, situation 100 82 Prague and 10 development czso.cz 1/X in the Czech Republic, supported by the Technology Agency of the CR, project No.TD010171.
CONTENT Definitions Worker Poverty Group 1 Individual poverty Household s poverty Individual vs. household s poverty Subgroups characteristics Group 2 Individual poverty Household s poverty Individual vs. household s poverty Summary CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 2/X
DEFINITIONS: WORKER 2 main groups of workers: Group 1: Persons who are 16 years old and over and worked 12 months in full-time employment Czech Republic: 3 451 thousand persons (33.2 %) Slovak Republic: 1 961 thousand persons (36.2 %) Group 2: Persons who are 16 years old and over and worked in full-time employment for at least 6 month, but not full year (less than 12 months) Czech Republic: 320 thousand persons (3.1 %) Slovak Republic: 132 thousand persons (2.6 %) CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 3/X
DEFINITIONS: POVERTY Indicators on household level: At-risk-of-poverty rate: Household equialised disposable income < 60 % median of national household equalized disposable income Czech Republic: 4 235 EUR Slovak Republic: 3 670 EUR Standard European indicator for measuring relative poverty CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 4/X
DEFINITIONS: POVERTY Indicators on individual level: Poverty in Earned Income (PEI): Earned income < poverty threshold for the household of a single person Earned income = wages and salaries + sickness benefits Poverty in Overall Personal Income Overall personal income < poverty threshold for the household of a single person Besides earned income, overall personal income includes also other income such as income from selfemployment, social benefits (e.g. unemployment benefits), etc. CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 5/X
GROUP 1: INDIVIDUAL POVERTY 4.3 % of employees in Group 1 has lower income from employment than single person household poverty line 3.8 % of employees whose overall personal income is not high enough to be above poverty threshold 0.5 p.p. of employees has additional income that keeps them above poverty threshold 7.4 % of employees in Group 1 has lower income from employment than single person household poverty line 6.8 % of employees whose overall personal income is not high enough to be above poverty threshold 0.6 p.p. of employees has additional income that keeps them above poverty threshold CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 6/X
GROUP 1: INDIVIDUAL POVERTY % CZECH REP. Difference (in p.p.) PEI 4.3 7.4 poverty rate after inclusion of: % SLOVAK REP. Difference (in p.p.) Income from self-employment 4.3 0.0 7.4 0.0 Unemployment benefits 4.3 0.0 7.4 0.0 Old-age benefits 4.2 0.1 7.2 0.2 Survivors benefits 4.2 0.0 7.0 0.2 Disability benefits 3.9 0.2 6.8 0.2 Other income 3.8 0.0 6.8 0.0 CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 7/X
GROUP 1: HOUSEHOLD S POVERTY 2.2 % of employees is poor by their household s equialised disposable income 19.2 % of them are poor also by their overall personal income 0.4 % workers are poor both by their household s income and by overall personal income = the core of the working poor population 3.1 % of employees is poor by their household s equialised disposable income 42.5 % of them are poor also by their overall personal income 1.3 % workers are poor both by their household s income and by overall personal income = the core of the working poor population CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 8/X
Poverty in Household s Income Poverty in Household s Income GROUP 1: INDIVIDUAL VS. HOUSEHOLD S POVERTY Poverty in Overall Personal Income Estimated counts in 1000s / share of employees (%) Poverty in Overall Personal Income Estimated counts in 1000s / share of employees (%) YES-YES 14 thousand, 0.4 % YES-NO 60 thousand, 1.7 % YES-YES 26 thousand, 1.3 % YES-NO 35 thousand, 1.8 % NO-YES 117 thousand, 3.4 % NO-NO 3 259 thousand, 94.5 % NO-YES 107 thousand, 5.5 % NO-NO 1 794 thousand, 91.4 % CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 9/X
SUBGROUP 1: CHARACTERISTICS predominantly women never-married or divorced one-person households 14 thousand, 0.4 % more often limitation in activities because of health problems single-parent households with dependent children block of flats in the densely populated area lower education level non-supervisory positions 26 thousand, 1.3 % declaration of better health most people with income up to 300 EUR detached houses in the thinly populated area CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 10/X
SUBGROUP 2: CHARACTERISTICS men-breadwinners: their personal income is not low, but the composition of their household makes them poor 60 thousand, 1.7 % declaration of better health married people parent families with children lower work intensity of their hh 35 thousand, 1.8 % more often limitation in activities because of health problems lower incomes CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 11/X
SUBGROUP 3: CHARACTERISTICS low personal income is not the problem for them, because the composition of their household keeps them above poverty threshold 117 thousand, 3.4 % higher incomes women married people households with other members 107 thousand, 5.5 % more often limitation in activities because of health problems CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 12/X
SUBGROUP 4: CHARACTERISTICS both men and women higher education level higher incomes households without children declaration of better health higher proportion of supervisory positions 3 259 thousand, 94.4 % higher proportion of men 1 794 thousand, 91.4 % lower number of supervisory positions CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 13/X
GROUP 1: INDIVIDUAL VS. HOUSEHOLD S POVERTY 2.2 % poor by their household s equialised disposable income 25.0 % poor by their household s income per capita 22.8 p.p. more people at risk of poverty when using per capita income instead of equialised one core of WP population increased by 1.7 p.p. (0.4 % 2.1 %) 3.1 % poor by their household s equialised disposable income 25.0 % poor by their household s income per capita 21.9 p.p. more people at risk of poverty when using per capita income instead of equialised one core of WP population increased by 2.8 p.p. (1.3 % 4.1 %) CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 14/X
Poverty in Household s Income (per capita) Poverty in Household s Income (per capita) GROUP 1: INDIVIDUAL VS. HOUSEHOLD S POVERTY Poverty in Overall Personal Income Estimated counts in 1000s / share of employees (%) Poverty in Overall Personal Income Estimated counts in 1000s / share of employees (%) YES-YES 72 thousand, 2.1 % YES-NO 789 thousand, 22.9 % YES-YES 80 thousand, 4.1 % YES-NO 409 thousand, 20.8 % NO-YES 60 thousand, 1.7 % NO-NO 2 530 thousand 73.3 % NO-YES 53 thousand, 2.7 % NO-NO 1 419 thousand, 72.4 % CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 15/X
GROUP 2: INDIVIDUAL POVERTY 36.9 % of employees in Group 2 has lower overall personal income than single person household poverty line If people from the Group 2 were able to keep their jobs, there would be 13.4 % poor workers in their income from employment there would be 23.5 p.p. less poor workers when compared with their present current overall income 53.5 % of employees in Group 2 has lower overall personal income than single person household poverty line If people from the Group 2 were able to keep their jobs, there would be 31.9 % poor workers in their income from employment there would be 21.6 p.p. less poor workers when compared with their present current overall income CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 16/X
GROUP 2: OTHER ACTIVITIES DURING THE REFERENCE YEAR Other activity CR SR Other activity CR SR Self-employed 3.2 % 2.5 % Unemployed 61.4 % 65.3 % Permanently disabled or/and unfit to work Fulfilling domestic tasks and care responsibilities 2.5 % 1.7 % 18.0 % 0.6 % Pupil, student, further training, unpaid work experience In retirement or in early retirement or has given up business 6.2 % 10.5 % Other inactive person 0.0 % 11.7 % 6.5 % 6.5 % Combination of more other activities 2.2 % 1.2 % CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 17/X
GROUP 2: HOUSEHOLD S POVERTY 8.6 % of employees is poor by their household s equialised disposable income 71.4 % of them are poor also by their overall personal income 6.1 % workers are poor both by their household s income and by overall personal income = the core of the working poor population 11.3 % of employees is poor by their household s equialised disposable income 84.9 % of them are poor also by their overall personal income 9.6 % workers are poor both by their household s income and by overall personal income = the core of the working poor population CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 18/X
Poverty in Household s Income Poverty in Household s Income GROUP 2: INDIVIDUAL VS. HOUSEHOLD S POVERTY Poverty in Overall Personal Income Estimated counts in 1000s / share of employees (%) Poverty in Overall Personal Income Estimated counts in 1000s / share of employees (%) YES-YES 20 thousand, 6.1 % YES-NO 8 thousand, 2.5 % YES-YES 13 thousand, 9.6 % YES-NO 2 thousand, 1.7 % NO-YES 98 thousand, 30.8 % NO-NO 194 thousand, 60.6 % NO-YES 58 thousand, 43.9 % NO-NO 59 thousand, 44.8 % CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 19/X
GROUP 2: INDIVIDUAL VS. HOUSEHOLD S POVERTY 8.6 % poor by their household s equialised disposable income 38.0 % poor by their household s income per capita 29.4 p.p. more people at risk of poverty when using per capita income instead of equialised one core of WP population increased by 15.5 p.p. (6.1 % 21.6 %) 11.3 % poor by their household s equialised disposable income 40.2 % poor by their household s income per capita 28.9 p.p. more people at risk of poverty when using per capita income instead of equialised one core of WP population increased by 19.2 p.p. (9.6 % 28.8 %) CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 20/X
Poverty in Household s Income (per capita) Poverty in Household s Income (per capita) GROUP 2: INDIVIDUAL VS. HOUSEHOLD S POVERTY Poverty in Overall Personal Income Estimated counts in 1000s / share of employees (%) Poverty in Overall Personal Income Estimated counts in 1000s / share of employees (%) YES-YES 69 thousand, 21.6 % YES-NO 52 thousand, 16.4 % YES-YES 38 thousand, 28.8 % YES-NO 15 thousand, 11.4 % NO-YES 49 thousand, 15.3 % NO-NO 149 thousand, 46.7 % NO-YES 32 thousand, 24.7 % NO-NO 46 thousand, 35.1 % CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 21/X
SUMMARY In work poverty is higher in Slovakia In the Group 1 of employees the core of the working poor population is 3 times bigger in Slovakia The highest influence on the poverty rate has the household composition Equivalence scales play crucial role when moving from individual to household level Income extrapolation significantly reduces income poverty in the Group 2 CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 22/X
Thank you for your attention! sarka.sustova@czso.cz martin.zeleny@czso.cz eliska.zykmundova@czso.cz CZECH STATISTICAL OFFICE Na padesátém 81, 100 82 Prague 10 czso.cz 23/X