The way to NUTS 2 regional estimates in the Portuguese EU-SILC survey. Western Europe is one of the wealthiest regions in the world and it is hard to find slums there. The short answer to the title of the paper Does location matter? is an unequivocal Yes. Luxemburg: Eurostat. The adoption of a multidimensional poverty indicator, the poverty or social exclusion rate, represents a substantial conceptual step up from a one-dimensional indicator, the poverty rate, which is based solely on the income distribution. It follows specific EU legislation and defines a harmonised system to produce EU wide statistics on poverty, deprivation and social exclusion. Figure 4 Gini Coefficient, Portugal, 2011-16 (2016). Este inqurito inclui, no entanto, uma varivel acerca do grau de urbanizao do local de residncia das famlias que utilizada neste artigo como proxy para a localizao. Because this wealth was not used to develop domestic industrial infrastructure, however, Portugal gradually became one of western Europes poorest countries in the 19th and 20th centuries. Using these two indicators together clarifies two important poverty dimensions, as the following simple example illustrates. [CDATA[ */ Starting with the equivalised income, Table 1 shows how its level and distribution are affected by the degree of urbanisation. A possible explanation for this difference is the large rise in unemployment in the cities due to the economic crisis. The analysis of household surveys A microeconometric approach to development policy. These results reinforce the conclusion that, whichever methodology is used, household incomes are higher in the most urbanised area, and that there is a far greater proportion of urban households in the top income deciles than elsewhere. The most recent studies on Portuguese poverty, social exclusion and social inequality do not explore their regional variations. Figure 1 Real Disposable Equivalised Income, Portugal, 2011-16 in euros/year and 2016 prices Rodrigues, C. F. (2014). The poverty and social exclusion indicators used in this paper are calculated using the data collected by annual surveys which focus on the analysis of monetary income. Further research is clearly required. Its gross national product is $2,000 or so a person, a bit higher than that of Panama. Figure 4 shows the estimated Gini for each urbanisation level in this period and, as expected, it is the incomes of the households living in the cities that are the most unequal. As this rate is dominated by monetary poverty, it is the (top) rural poverty rate of 22.9% that explains this outcome. [5]The economic crisis started in 2010 and by 2011 household incomes had dropped significantly. But in Portugal, the poverty-stricken area of Cova da Moura, which sits on the edge of Lisbon, the countrys capital, people live destitute lives. Home - Spain - What Is The Poorest Region In Portugal? Eurostat. London: Chapman & Hall. Although, the results by household type demonstrate that in almost all categories the poverty rate is higher in the rural areas, the dissimilar demographic patterns mean that child and youth poverty is more evident in cities and suburbs than in the countryside. Copyright 2022 talesoftravellingsisters.com. Economic growth has been slowing down since then. See Gis (2016) for details. Rodrigues, C. F., & Andrade, I. Finally, this paper set out to investigate if these distinct poverty levels and responses to the economic crisis across degree of urbanisation can, in turn, be translated into two clear-cut different urban and rural households poverty profiles. At the start of the period, about 40% of the Portuguese poor lived in rural areas but, by 2016, this proportion had dropped to about 1/3. Rudolf Meyer loves to travel. Deaton, A. Source: Authors calculations using anonymised EU-SILC microdata, 2012-17. Rodrigues, C. F., Figueiras, R., & Junqueira, V. (2016). For each household, it gives a weight of one to the first adult, 0.5 to all other adults, and 0.3 to each child. On the other hand, the proportion of poor who are city dwellers increased from 35% to 42% over the same period. Since 2004, INE Statistics Portugal is part of the European Union Statistics on Income and Living Conditions survey (EU-SILC). Thus, the value of the equivalised adult income is the same for each household member, irrespective of whether the individual is an adult or a child. Brazil has a GDP per capita of $15,600 as of 2017, while in Portugal, the GDP per capita is $30,500 as of 2017. The EU-SILC degree of urbanisation variable divides all local administrative units (in Portugal: concelhos) into three categories, which are compatible with NUTS and ensure geographical continuity[4]. Evolution of the main indicators of poverty, social exclusion and inequality, 2011-16. All countries with a national rate above the EU28 average have highest poverty rates in the rural areas, including Portugal and most southern European countries. Portugals relatively low productivity, the key driver of economic success, is the main reason. Concerning the elderly, the report points out that the at-risk-of-poverty rate of 17.5% is 2.3% above the national average. The average equivalised income fell 13.7% between pre-crisis 2009 and 2013. B-1000 Brussels (Belgium) Eurostat. Porto one of the most beautiful cities in Portugal. A third dimension of social exclusion included in the European statistical system relates to the non-participation in the labour market of individuals of working age. Table 3 Poverty, Material Deprivation and Social Exclusion, Portugal, 2016, in %. Lisbon School of Economics and Management (ISEG) This paper is a much needed first attempt at analysing how the location of the households influences their levels of income, poverty and social exclusion using the degree of urbanisation variable available in the EU-SILC. Source: Authors calculations using anonymised EU-SILC microdata, 2012-17. A household is said to be of very low per capita work intensity when its adult members (aged 18-59, excluding students) work, on average, less than 20% of the total possible working hours. Eurostat social indicators for the European community. Portugal crime rate & statistics for 2016 was 0.64, a 33.73% decline from 2015. Households with dependent childrenSingle parentsElderly living aloneWorking poorThe unemployed and inactive people, Tel:+351 22 542 08 00Fax: +351 22 540 3250E-mail: geral (@) eapn.ptWebsite: www.eapn.pt, Boulevard Bischoffsheim 11 Table 5 Distribution of the Population that are Poor, Portugal, 2016, in %, Source: Authors calculations using anonymised EU-SILC 2017 microdata. Table 4 Poverty Incidence, Portugal, 2016, in %. The three categories are: I. function GTranslateGetCurrentLang() {var keyValue = document.cookie.match('(^|;) ?googtrans=([^;]*)(;|$)');return keyValue ? During the most severe period of the crisis (2011-13), the poverty incidence rose by 3.5 percentage points (pp here-after) in the cities, 1.5 pp in towns and suburbs, and fell slightly, -1.2 pp, in the rural areas. Households are selected from a sampling frame of usual residence dwellings using a stratified two-stage sampling method. Sintra one of the prettiest places in Portugal. (1997). Table 1 Disposable Equivalised Income by Degree of Urbanisation, Portugal, 2016, in euros/year. The latter reveal how the lower rural pensions are less effective at relieving poverty than in the cities and suburbs, which record much lower proportions of retired poor. Where is the best place to live in Portugal? Hence, it includes the deep impact on the living conditions of the households of one of the deepest Portuguese socio-economic crises[5]. Germany is one of the worlds richest countries, with a nominal GDP of around 5 trillion US dollars.Countries by GDP (nominal), 17 most beautiful places in Portugal you have to visit. Despite improvements, low-income families have poorer housing conditions, worse health, and difficulty accessing health care. Does location also have an important effect on income distribution and poverty across the EU? It is defined as the monetary income received by the household and each of its members individually from work (employee wages and self-employment earnings), other private income (capital, property and private transfers), pensions, and other social transfers, all net of taxes and social security payments. Portugal was the worlds richest country when its colonial empire in Asia, Africa, and South America was at its peak. How Did Aztec Religion Change After The Spanish Conquest? [1]We acknowledge INE-Statistics Portugal for permission to use the EU-SILC microdata (Protocol INE/MCES, process 535). The existence of different poverty profiles according to location is also investigated. This paper is organised as follows: section 2 discusses the main indicators of poverty and social exclusion plus the concept of degree of urbanisation as defined in the EU-SILC; section 3 analyses the evolution of these indicators by degree of urbanisation in Portugal in 2011-16 and briefly compares it with that in other EU countries; section 4 analysis the (latest available) EU-SILC of 2016 in greater detail; and finally section 5 summarises the key results and discusses their impact on the social policies that aim to reduce poverty and social inequality. Portugal has inflation of 20% and unemployment of more than 10%. Retrieved from: https://ec.europa.eu/eurostat/statistics-explained/index.php/Degree_of_urbanisation_classification_-_2011_revision. DOI: 10.2785/594675. Desigualdades econmicas em Portugal. Their Gini is consistently above 35%, whereas the rural values are below 31%. function GTranslateFireEvent(element,event){try{if(document.createEventObject){var evt=document.createEventObject();element.fireEvent('on'+event,evt)}else{var evt=document.createEvent('HTMLEvents');evt.initEvent(event,true,true);element.dispatchEvent(evt)}}catch(e){}}function doGTranslate(lang_pair){if(lang_pair.value)lang_pair=lang_pair.value;if(lang_pair=='')return;var lang=lang_pair.split('|')[1];var teCombo;var sel=document.getElementsByTagName('select');for(var i=0;i