Statistical Release
Household budget Survey, Income and living conditions Survey - Income and living conditions
14.10.2022
Final data Periodicity: annual

Poverty and Social Inequality, 2021

According to the Survey data, the at-risk-of-poverty rate was 21.2% in 2021, and compared to 2020, it was lower by 0.5 percentage points. The at-risk-of-poverty or social exclusion rate amounted to 28.5%, and it was lower by 1.3 percentage points relative to 2020.

According to the Survey data, the at-risk-of-poverty rate was 21.2% in 2021, and compared to 2020, it was lower by 0.5 percentage points. The at-risk-of-poverty or social exclusion rate amounted to 28.5%, and it was lower by 1.3 percentage points relative to 2020.

1. Key indicators of poverty and social exclusion

  2017 2018 2019 2020 2021
At-risk-of-poverty rate, %25.724.323.221.721.2
Аt-risk-of-poverty or social exclusion rate, %36.734.331.729.828.5
At-risk-of-poverty threshold (on a monthly level), RSD1560016615193812200024064

The at-risk-of-poverty rate represents the share of persons whose equivalised disposable income is below relative poverty line, which amounted to 24 064 RSD a month on an average for a single person household in 2021. It does not show the actual number of poor people, but rather how many of them have an income below the at-risk-of-poverty threshold.

The at-risk-of-poverty threshold amounted to 43 315 RSD a month on an average for a household with two adults and one child aged below 14, while for a four-member household with two adults and two children aged below 14, it amounted to 50 533 RSD.

The at-risk-of-poverty or social exclusion rate shows the share of individuals who are at risk of poverty or are severely materially deprived or live in households with very low work intensity.

Observed by age, the at-risk-of-poverty rate shows that individuals aged from 18 to 24 were the most exposed to the poverty risk – 27.7%, as well as individuals aged 65 and over – 22.7%. The lowest at-risk-of-poverty rate was recorded for the group of persons aged from 25 to 54 – 19.1%.

By the type of household, households with dependent children were at the higher risk-of-poverty – 21.4%, compared to households without dependent children – 20.9%. The highest at-risk-of-poverty rate was recorded for households composed of two adults with three or more dependent children – 38.8%, while the lowest at-risk-of-poverty rate was recorded for the households composed of three or more adults – 14.3%.

According to the activity status for persons aged 18 and over, the most exposed to the at-risk-of-poverty were unemployed persons – 48.6%. Self-employed persons were at the higher risk-of-poverty rate – 14.5%, compared to employees working for employers – 5.4%. The at-risk-of-poverty rate for pensioners was 19.9%.

 

At-risk-of-poverty or social exclusion rate, %

2. Poverty and social exclusion indicators

  2017 2018 2019 2020 2021
At-risk-of-poverty rate, %25.724.323.221.721.2
At-risk-of-poverty threshold (on a monthly level), RSD
   Single person1560016615193812200024064
   Household with two adults and one child younger than 14 years2808029907348863960043315
   Two adults with two children younger than 14 years3276034892407004620050533
Аt-risk-of-poverty or social exclusion rate, %36.734.331.729.828.5
At-risk-of-poverty rate before social transfers, %
   Social transfers not included in the income31.629.628.326.729.5
   Pensions and social transfers not included in the income51.348.746.644.846.4
Relative at risk of poverty gap 38.837.432.127.128.3
Income quintile share ratio S80/S209.48.66.56.15.9
Gini coefficient37.835.633.333.333.3
Persistent at-risk-of-poverty rate18.419.615.914.516.5

3. At-risk-of-poverty rate by sex and age, 2021

%
  Total Male Female
Total21.220.421.9
   0-1720.820.121.5
   18-6420.720.620.8
   18-2427.726.429.0
   25-5419.119.119.2
   55-6421.822.321.4
   65 year and more22.720.224.7

Methodological notes

The reference source of data for the compilation of indicators on poverty, social exclusion and living conditions is the annual survey Statistics of Income and Living Conditions (SILC). The survey is fully compliant with EU regulations and Eurostat methodological guidelines and description of EU-SILC.

The calculation of poverty and social exclusion indicators published in this statistical release is based on data obtained from the survey conducted in 2021.

The calculation of the at-risk-of-poverty threshold, the at-risk-of-poverty rate and other monetary poverty indicators is based on the household income received by all members of a household in 2020.

Reference period for:

In 2021. out of total number of households envisaged for the survey - 5 903, a total of 5 158 households were surveyed, i.e. 13 855 persons aged 16 and over.

A household means any family or other community of persons who live together and jointly spend funds for meeting their basic life needs (food, housing, etc.), regardless of whether all members are permanently at the place where the household resides or some of them temporarily reside in some other place in the country or abroad on account of work, education or for some other reason.

“Dependent children” relate to all persons under the age of 18, as well as persons aged from 18 to 24, living with at least one parent, and being economically inactive.

Equivalised disposable income is the total household disposable income evenly distributed among the members of the household according to the modified OECD (Organisation for Economic Co-operation and Development) equivalence scale. In accordance with this scale, first adult member of the household receives the value of 1, other adults aged 14 and over 0.5, and children under the age of 14, 0.3. Household income does not include income in kind.

The at-risk-of-poverty threshold (relative poverty line) represents 60% of the median equivalised disposable income and it is presented in dinars.

The at-risk-of-poverty rate represents the share of persons whose equivalised disposable income is below relative poverty line. It does not show the actual number of poor people, but rather how many of them have an income below the at-risk-of-poverty threshold.

The at-risk-of-poverty or social exclusion rate (AROPE) shows the share of individuals who are at risk of poverty or are severely materially deprived or live in households with very low work intensity.

The relative at-risk-of-poverty gap represents the difference between the at-risk-of-poverty threshold and the median equivalised disposable income of the persons who are below the at-risk-of-poverty threshold.

The S80/S20 income quintile share ratio compares the total equivalised disposable income of the highest income quintile (20% of the population with the highest equivalised disposable income) with those from the lowest income quintile (20% of the population with the lowest equivalised disposable income).

The Gini coefficient represents the measure of inequality in the distribution of income. The value of this coefficient goes within the interval from 0 to 100, where 0 represents perfect equality, i.e. each person has equal income. As the value of the coefficient grows, so grows the income inequality.

Persistent at-risk-of-poverty rate presents the percentage of persons who are at-risk-of-poverty in the current year and who have been in the same position for at least two of the three previous years.

The most frequent status in the labour market refers to the activity status which the person had for at least 7 months during the reference period. It is calculated for the persons aged 18 and over.

The work intensity of the household refers to the number of months that all working age household members have been working during the income reference period as a proportion of the total number of months that could theoretically be worked within the household. The work intensity is defined as very low (0-0.20), low (0.20-0.45), medium (0.45-0.55), high (0.55-0.85) and very high (0.85-1). Low work intensity refers to households whose working-age members worked between 20% and 45% of the total number of months they could have possibly worked during a referent period.

The dispersion around the at-risk-of-poverty threshold shows sensitivity of the at-risk-of-poverty rate to the selection of the poverty threshold – 40%, 50%, 70% of the median national equivalised disposable income.

The material deprivation of a household is an indicator of the material conditions that influence the quality of life of the household.

The material deprivation items are:

  1. inability of the household to keep its home adequately warm,
  2. inability of the household to afford the washing machine,
  3. inability of the household to afford a car,
  4. inability of the household to afford paying for one week annual holiday away from home,
  5. inability of the household to afford unexpected financial expenses (19 400 RSD),
  6. inability of the household to afford a telephone,
  7. inability of the household to afford a colour TV,
  8. inability of the household to afford a meal with meat, chicken, fish (or vegetarian equivalent) every second day,
  9. being in arrears with mortgage or rent payments, utility bills, hire purchase instalments or other loan payments.

The material deprivation rate is an indicator of the inability of a household to financially afford at least 3 out of 9 items of material deprivation.

The severe material deprivation rate is an indicator of inability of a household to financial afford at least 4 out of 9 items of material deprivation.

Subjective poverty rate (ability to make ends meet) represents a subjective feeling of the households about the difficulties faced in its attempt to pay all of its necessary costs taking into consideration the total income of that household.

Financial burden of the total housing cost refers to the subjective assessment of the household about the extent of the burden of the total housing costs. These expenditures include mortgage and rent payments, utility bills, and other expenditures related to housing.

Starting from 1999 the Statistical Office of the Republic of Serbia has not at disposal and may not provide available certain data relative to AP Kosovo and Metohija and therefore these data are not included in the coverage for the Republic of Serbia (total).