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IW-Trends No. 1 1. March 2017 Christoph Schröder Poverty in Europe: A Multi-dimensional Approach

When discussed in public, poverty is often equated with relative income poverty. However, to define poverty exclusively in terms of low income is to see it too narrowly.

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A Multi-dimensional Approach
IW-Trends No. 1 1. March 2017 Christoph Schröder

Poverty in Europe: A Multi-dimensional Approach

IW-Trends

Christoph Schröder German Economic Institute (IW) German Economic Institute (IW)

When discussed in public, poverty is often equated with relative income poverty. However, to define poverty exclusively in terms of low income is to see it too narrowly.

The at-risk-of-poverty rate, the proportion of the population earning less than 60 per cent of the median household income, is actually a very specific measure of income inequality. The Czech Republic fares best on this indicator, while with rates between 21 and 25 per cent the Baltic states, Greece, Spain, Romania and Bulgaria come out worst. Germany has a slightly below-average at-risk-of-poverty rate, putting it in the middle of the ranking. The EU defines as poor anyone forced by lack of resources to accept a lower standard of living. So-called consistent poverty is calculated as a combination of relative income poverty and material deprivation and therefore meets the EU definition. Alternatively, poverty can be measured as a lack of capabilities and opportunity for self-fulfilment. In the present study, the factors considered are income, material deprivation, education, gainful employment, housing and housing environment, and health, with the indicators for these factors being summarized in a multi-dimensional poverty index. The index ranks Norway, Sweden and Switzerland highest, with Bulgaria, Romania and Greece bring up the rear, a result similar to that for consistent poverty. In Germany, the poverty rate based on the two measures is considerably lower than the EU average. Subjective income poverty also correlates closely with the two multidimensional poverty measures. This makes the latter more suitable for depicting reduced circumstances and also more appropriate for setting policy goals in the fight against poverty.

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A Multi-dimensional Approach
IW-Trends No. 1 1. March 2017 Christoph Schröder

Christoph Schröder: Armut in Europa – Eine multidimensionale Betrachtung

IW-Trends

Christoph Schröder German Economic Institute (IW) German Economic Institute (IW)

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IW-Trends No. 4 3. December 2025 Maximilian Stockhausen

Gainful Employment and Caregiving: Reconciling Formal Employment with Caring for a Relative

German society is ageing, and more and more of those in paid employment are having to combine their jobs with caring for a relative. Of the approximately 5.7 million family caregivers in Germany in 2022, almost three quarters were under 66 and thus still of working age.

Maximilian Stockhausen IW

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IW-Report No. 59 17. November 2025 Ruth Maria Schüler et al.

Co-payments in inpatient care: An analysis of regional cost differences

This report is based on the evaluation of price data from a total of 10,820 full-time nursing homes in Germany which are provided on the ‘pflegelotse.de’ platform of the Association of Substitute Health Insurance Funds (vdek) and were collected at the beginning of October 2024 using a web scraping process.

Ruth Maria Schüler / Maximilian Stockhausen / Hendrik Böhmer / Jan Wendt IW

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