In Italy, over the last 14 years, the index covering the people at risk of poverty or social exclusion has grown by over 2 000 October 17, 2018 – Posted in: lifestyle, posts

Eurostat publishes an index that covers the people who were classified as at risk of poverty or social exclusion [in thousands]. According to the European Statistical Office, such persons experienced at least one of the following situations:

– at risk of poverty after social transfers (income poverty);
– severely materially deprived; or
– living in households with very low work intensity

The fight against poverty or social exclusion is one of the main purposes of Europe 2020 headline indicators – the strategy adopted by the European Commission on 17th June 2010 which aims at developing the intelligent, greener and more inclusive economy and society. Moreover, it is also intended to reduce poverty of at least 20 million Europeans.

According to Eurostat data, Italy has the highest rate of people at risk of poverty or social exclusion. Since 2004 it has risen by 3 006 persons. After the correlation analysis, we discovered interesting relations and drew some conclusions.

The outcomes of the correlation analysis using ExMetrix

The rate of poverty or social exclusion is positively associated with the harmonised unemployment rate in Italy. Both indices grow. Italy has one of the highest unemployment rates in the EU. Probably that is one of the reasons why the country has over 18 000 people at risk of poverty or social exclusion.

The variable describing the number of people threatened by poverty is also related to a level of producer prices of some consumer articles. One of them is the manufacture of wine from grapes. The correlation analysis implies that the higher are the producer prices, the more people are endangered by poverty or social exclusion problem.

Another correlation occurs with producer prices in manufacturing prepared dishes and meals. Although Italy is well-known for the extraordinary cuisine, it might be too luxurious for the local residents too, and already prepared dishes are probably the last resort. As presented in the line chart, the higher the prices are, the more people are at risk of poverty or social exclusion.

The correlation analysis delivered one more interesting outcome. The number of people endangered by poverty or social exclusion problem is also strongly associated with the harmonised index of consumer prices for medical services in Italy. The access to basic health care is one of the determinants of a well-functioning country. If it is not accessible for everyone, the problem of poverty or social exclusion grows.

Sara Swierczek

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