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A new poverty indicator for Europe

The extended headcount ratio

Bibliographic Data

ID12255649
AuthorsTim Goedemé (0000-0002-2985-4320, Institute for New Economic Thinking at the Oxford Martin School, Department of Social Policy and Intervention, University of Oxford, Oxford, UK; Herman Deleeck Centre for Social Policy, University of Antwerp, Antwerpen, Belgium), Benoît Decerf (0000-0002-0768-501X, University of Namur, Namur, Belgium; the World Bank, Washington DC, USA, corresponding author), Karel Van Den Bosch (0000-0002-3996-550X, University of Antwerp)
Year2022
Volume32
Issue3
Pages287-301
Publication date2022-03-20
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueJournal of European Social Policy (JOURNAL)
Journal identifiersISSN: 0958-9287 • E-ISSN: 1461-7269
PublisherSAGE Publishing (PUBLISHER • US)
DOI10.1177/09589287221080414
OpenAlexW3203164728
LanguageEN
Citations received8
References cited27

The methodology currently used to measure poverty in the European Union faces some important limitations. Capturing key aspects of poverty is done using a dashboard of indicators, which often tell conflicting stories. We propose a new income-based measure of poverty for Europe that captures in a consistent way in a single indicator the level of relative poverty, the intensity of poverty, poverty with a threshold anchored in time and a pan-European perspective on poverty. To do so, we work with a recently developed poverty index, the extended headcount ratio (EHC) and derive the relevant poverty lines to apply the index to poverty in Europe. We show empirically that our measure consistently captures the aspects typically monitored using a variety of indicators and yields rankings that seem more aligned with intuitions than those obtained by these individual indicators. According to our measure, Eastern Europe has a much higher level of poverty than Southern Europe, which, in turn, has a considerably higher level of poverty than North-Western Europe. In North-Western Europe, the evolution of our measure over time correlates most strongly with the at-risk-of-poverty rate, while in Southern and Eastern Europe, it correlates most strongly with at-risk-of-poverty with the threshold anchored in time

Demographic economics · Development economics · Economic growth · Economics · European union · Index (typography · International economics · Measure (data warehouse · Poverty · Computer Science · Fiscal Policy and Economic Growth · Global Health Care Issues · Income, Poverty, and Inequality

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Unique citing works8
Citations per year2
Citation span2022 - 2026 (5)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 8

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