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Absolute poverty, Istat: record since 2005

Especially young people and people with low education are affected - The incidence of absolute poverty increases among families with 4 members, especially couples with 2 children, and among families of only foreigners

Absolute poverty, Istat: record since 2005

In 2015, there were one million and 582 thousand Italian families in conditions of absolute poverty, while individuals reached 4 million and 598 thousand, the highest number from 2005 to today. Istat estimates it in the annual report on poverty in Italy.

The incidence of absolute poverty remains essentially stable compared to the last three years for families, with statistically insignificant annual variations (6,1% of resident families in 2015, 5,7% in 2014 and 6,3% in 2013) . Instead, it grows if measured in terms of people, reaching 7,6% of the resident population in 2015, against 6,8% in 2014 and 7,3% in 2013.

This trend over the last year is mainly due to the increase in the condition of absolute poverty among families with 4 members (from 6,7 in 2014 to 9,5%), especially couples with 2 children (from 5,9 to 8,6%), and among families of only foreigners (from 23,4 to 28,3%), on average more numerous.

As expected, absolute poverty mainly affects young people and people with low education. In fact, the incidence decreases as the reference person's age increases (the minimum value, 4,0%, is recorded among households with a reference person over sixty-four) and his or her educational qualification (if the incidence is at least is just over a third of that recorded for those with at most an elementary school leaving certificate).

The incidence of absolute poverty among families with an employed reference person increased (from 5,2 in 2014 to 6,1%), especially if they were workers (from 9,7 to 11,7%). It remains low among households with managers, supervisors and employees (1,9%) and retired from work (3,8%).

Absolute poverty is increasing in the North both in terms of families (from 4,2 in 2014 to 5,0%) and people (from 5,7 to 6,7%), above all due to the expansion of the phenomenon among only foreigners (from 24,0 to 32,1%). Signs of worsening are also recorded among households residing in central metropolitan area municipalities (the incidence increased from 5,3 in 2014 to 7,2%) and among those with a reference person between 45 and 54 years of age ( 6,0 to 7,5%).

As for relative poverty, it was stable in 2015 in terms of families (2 million 678 thousand, equal to 10,4% of resident families compared to 10,3% in 2014), while it increased in terms of people (8 million 307 thousand, equal to 13,7% of residents from 12,9% in 2014).

ABSOLUTE POVERTY: WHAT IT IS AND HOW IT IS CALCULATED

The absolute poverty line is the monetary value of the basket of goods and services considered essential for achieving a "minimally acceptable" standard of living. The value is updated every year and varies according to the number of family members, their age, geographical distribution (North, Center or South) and the type of municipality of residence (metropolitan area, large municipality or small municipality). A family is absolutely poor if it sustains a monthly expenditure for consumption equal to or lower than this threshold.

RELATIVE POVERTY

A household is defined as relative poor if its consumption expenditure is at or below the relative poverty line, which is calculated from household consumption survey data. The parameter expresses the economic difficulty in using goods and services, referring to people or geographical areas, in relation to the average economic standard of living of the environment or of the nation.

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