Living conditions in Europe 2018 edition S TA T I S T I C A L B O O K S Living conditions in Europe 2018 edition Printed by Imprimerie Centrale in Luxembourg Manuscript completed in March 2018 Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use that might be made of the following information. Luxembourg: Publications Ofce of the European Union, 2018 © European Union, 2018 Reuse is authorised provided the source is acknowledged. The reuse policy of European Commission documents is regulated by Decision 2011/833/EU (OJ L 330, 14.12.2011, p. 39). Copyright for photographs: cover: © Adisa/Shutterstock.com; chapter 1: © fotogestoeber/ Shutterstock.com; chapter 2: © Rosie Apples/Shutterstock.com; chapter 3: © Tupungato/ Shutterstock.com; chapter 4: © Doglikehorse/Shutterstock.com; chapter 5: © Rawpixel.com/ Shutterstock.com. For any use or reproduction of photos or other material that is not under the EU copyright, permission must be sought directly from the copyright holders. For more information, please consult: http://ec.europa.eu/eurostat/about/policies/copyright Theme: Population and social conditions Collection: Statistical books Print: ISBN 978-92-79-86497-1 PDF: ISBN 978-92-79-86498-8 ISSN 1725-5988 ISSN 2363-2526 doi:10.2785/14408 doi:10.2785/39876 Cat. No: KS-DZ-18-001-EN-C Cat. No: KS-DZ-18-001-EN-N A bstract Living conditions in Europe — 2018 edition This publication provides a picture of current living conditions in Europe, as well as the socio-economic factors afecting the everyday life of Europeans. Chapter 1 focuses on the fnancial dimensions of poverty and inequality. Chapter 2 examines to what extent a lack of adequate income can prevent people from afording an adequate standard of living. Chapter 3 presents statistics with regard to the quality of housing, while Chapter 4 provides information on the interactions between living conditions and labour and health status. Finally, Chapter 5 provides an analysis of social participation and social integration. The majority of the indicators presented in the publication come from European statistics on income and living conditions (EU-SILC), with data up to 2016. Production INFORMA sàrl: Simon Allen, Giovanni Albertone, Andrew Redpath Layout INFORMA sàrl Chief editor Emilio Di Meglio Eurostat, Unit F.4., Income and living conditions; Quality of life Editors Emilio Di Meglio, Agata Kaczmarek-Firth, Agnieszka Litwinska, Cristian Rusu Eurostat, Unit F.4., Income and living conditions; Quality of life Map production Eurostat, Unit F.4. Dissemination Catherine Coyette Eurostat, Unit B.4., Digital dissemination Contact details Eurostat Bâtiment Joseph Bech 5, rue Alphonse Weicker 2721 Luxembourg LUXEMBOURG For more information please consult: http://ec.europa.eu/eurostat http://ec.europa.eu/eurostat/help/support Data extraction Data were extracted during the period: 23 October - 3 November 2017 Living conditions in Europe — 2018 edition 3 Contents Contents Abstract 3 Contents 4 Introduction 5 1. Income distribution and income inequality 7 1.1 Income distribution 9 1.2 Income inequality 21 2. Efects of income on living conditions 25 2.1 Poverty and social exclusion 27 2.2 Material deprivation 42 2.3 Economic strain 47 3. Housing quality 53 3.1 Housing conditions 54 3.2 Living environments 64 3.3 Housing afordability 70 4. Socio-economic aspects of living conditions 77 4.1 Health conditions 78 4.2 Labour conditions 87 4.3 Childcare and education arrangements 105 5. Social participation and integration 109 5.1 Social participation 110 5.2 Social networks 122 Anex 13 Methodological notes 134 Glosary 135 Abbreviations and symbols 143 4 Living conditions in Europe — 2018 edition Introduction Introduction Since the launch of the Europe 2020 strategy (1) This statistical book aims to present a for smart, sustainable and inclusive growth, the comprehensive picture of current living importance of income and living conditions conditions in Europe. Diferent aspects of statistics has grown rapidly. Indeed, one of the living conditions are covered through a broad fve Europe 2020 headline targets is related to selection of indicators refecting socio- social inclusion and consists of lifting at least 20 economic conditions that afect the everyday million people in the European Union (EU) from lives of Europeans. The main aspects concern the risk of poverty or social exclusion by 2020. income, poverty and social exclusion, material deprivation and housing conditions, as well as The social consequences of the global fnancial health and labour conditions, social participation and economic crisis gave even more importance and social integration. to data on income and living conditions. One example concerns the creation of a reference This publication is divided into fve chapters, each framework for monitoring performance through focusing on diferent aspects of living conditions. the European pillar of social rights. Chapter 1 presents the fnancial dimensions of The social investment package (2) adopted in poverty and inequality and covers key income- based statistics and indicators refecting disparities February 2013, urged countries to put more in the distribution of monetary resources. Chapter 2 emphasis on social investment to achieve the shows how poverty, social exclusion and material Europe 2020 targets, and also led to increased deprivation can impact on the ability of people demand for timely and reliable data on the social to have an adequate standard of living. Chapter 3 situation in Europe. uses EU-SILC data to illustrate a range of issues in Finally, the Beyond GDP (3) debate has drawn relation to housing quality, presenting information attention for the need to complement GDP on actual dwellings as well as the local environment measures with indicators that encompass social that surrounds them. Chapter 4 examines the and environmental aspects of progress. impact that socio-economic factors may have on EU statistics on income and living conditions people’s living standards, for example, the infuence (EU-SILC) are the main data source used within of their labour market status or their health status. this publication for a comparative analysis of In Chapter 5, social participation and integration income and living conditions in the EU; they also are analysed, for example, detailing the share of provide information in order to analyse various people who are active citizens, the share of people aspects of social exclusion. that participate in volunteering activities, or the frequency with which people interact with their friends and/or family. (1) For more information, see: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:2020:FIN:EN:PDF. (2) For more information, see: http://ec.europa.eu/social/main.jsp?catId=1044&langId=. (3) European Commission, GDP and beyond — Measuring progress in a changing world, COM (2009) 433 fnal, Brussels, 2009 (http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2009:0433:FIN:EN:PDF). Living conditions in Europe — 2018 edition 5 Introduction The data used in the publication were drawn the 2012 EU-SILC ad-hoc module for data on from Eurostat’s dissemination database during housing; the 2013 EU-SILC ad-hoc module on the period from 23 October to 3 November 2017 personal well-being; the 2014 EU-SILC ad-hoc and cover all 28 Member States of the EU; subject module on material deprivation; and the 2015 to data availability, information is also presented EU-SILC ad-hoc module on social and cultural for EFTA (Iceland, Liechtenstein, Norway participation. Apart from the data derived from and Switzerland) and candidate countries EU-SILC, use was also made of two additional (Montenegro, the former Yugoslav Republic of sources — national accounts and harmonised Macedonia, Albania, Serbia and Turkey). indices of consumer prices (HICP) — the former provides information pertaining to the structure The majority of the indicators come from of household consumption expenditure, while EU-SILC data set and are generally available up the latter was used to defate income statistics so until 2016. Some specifc aspects of the analysis an analysis of income developments in real terms refer to earlier reference periods, for example: could be made. 6 Living conditions in Europe — 2018 edition Income distribution 1 and income inequality 1 Income distribution and income inequality Gross domestic product (GDP) is a measure (equivalence) scale — Eurostat uses a ‘modifed of the total output of an economy; from the OECD scale’ — which gives a weight to each perspective of living conditions, GDP may also member of a household (and then adds these be calculated as the sum of primary incomes that up to arrive at an equivalised household size), are distributed by resident producer units (in the taking into account the number of persons in form of wages, rents, interest and profts). When each household and the age of its members a country’s population is taken into account, GDP (more details are provided in the glossary). Total per capita provides both a convenient measure disposable household income, derived as the of average incomes and of the living standards sum of the income received by every member of enjoyed by the inhabitants living in a specifc the household and by the household as a whole, economy, as well as (when adjusted to take is divided by the equivalised household size to account of price diferences between countries determine the equivalised disposable income — through the use of purchasing power parities attributed to each household member. (PPPs)) — a measure for comparisons of living The median of the equivalised disposable standards across countries. income distribution is typically used in the Nevertheless, GDP per capita is a relatively European Union (EU) as a key measure for simple, aggregate measure and in order to have analysing standards of living within each a more detailed picture of living conditions, it economy. It is simply the income level that is pertinent to analyse the distribution (rather divides the population into two groups of equal than average levels) of household income. A size: one encompassing half the population with number of diferent statistical measures are a level of disposable income above the median, available for this purpose, including household and the other half with a level of disposable disposable income, in other words, the total income below the median. The use of the income that households have at their disposal median (in contrast to the arithmetic mean) for spending or saving. While the aggregated avoids any potential distortion that may be level of household disposable income is available caused by the existence of extreme values, such from national accounts and might be used for as a few extremely rich households that may a general analysis of the household sector, this raise the arithmetic mean. indicator also lacks any distributional dimension In 2016, median equivalised net income and it is therefore preferable to base any varied considerably across the EU Member analysis of income distributions on micro data States, ranging from PPS 4 720 in Romania to sources, in other words, statistical surveys for PPS 29 285 in Luxembourg, the EU-28 average a representative sample of actual households, was PPS 16 468; note, these fgures have been rather than aggregate macroeconomic measures. converted into purchasing power standards Such surveys allow an analysis of median income (PPS) — a unit that takes account of price level levels or the distribution of income across socio- diferences between countries. economic strata of the population. Median equivalised net income fell, in real terms, In order to take into account diferences in in 4 out of the 25 EU Member States for which household size and composition and thus data are available in 2016 (no data for Ireland, enable comparisons of income levels, the Italy or Luxembourg) — they were Bulgaria, concept of equivalised disposable income Finland, Greece and Malta. may be used. It is based on expressing total (net) household income in relation to the Across all 28 EU Member States, the top 20 % of number of ‘equivalent adults’, using a standard the population with the highest incomes (the 8 Living conditions in Europe — 2018 edition