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Absolute Poverty in EuropeInterdisciplinary Perspectives on a Hidden Phenomenon$
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Helmut Gaisbauer, Gottfried Schweiger, and Clemens Sedmak

Print publication date: 2019

Print ISBN-13: 9781447341284

Published to Policy Press Scholarship Online: January 2020

DOI: 10.1332/policypress/9781447341284.001.0001

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Measures of extreme poverty applied in the European Union

Measures of extreme poverty applied in the European Union

(p.39) 3 Measures of extreme poverty applied in the European Union
Absolute Poverty in Europe

Jonathan Bradshaw

Oleksandr Movshuk

Policy Press

This chapter operationalises and tests out a number of possible measures of extreme poverty applied to the European Union countries, using the analysis of household survey data from EU- Statistics on Income and Living Conditions (SILC). It starts by reviewing developments in the conventional measurement of poverty in the EU. Then the concepts of absolute and extreme poverty are discussed. The bulk of the chapter presents the results of an analysis of the poverty rates, poverty gaps and poverty composition of five conceivable measures of extreme poverty. These are: The World Bank $ per day concept; poverty thresholds based on national minimum income schemes – social assistance; a threshold set on the basis of a minimal reference budget standard; a severe deprivation standard; and an overlaps measure based on severe deprivation and low income. The latter is the preferred option.

Keywords:   absolute poverty, extreme poverty, minimum income, social assistance, reference budgets, deprivation

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