Statistics: economic crisis had no impact on poverty rates in 2008

28.06.2010, 13:47

According to Statistics Estonia, in 2008 the growth of wages and salaries slowed down but the increased pensions and governmental benefits helped to maintain incomes. Therefore the relative poverty remained on the level of 2007.

In 2008, 19.7% of the Estonian population lived in relative poverty, which is approximately as much as in 2007 when the rate was 19.5%. Social transfers (governmental benefits and pensions) helped to maintain incomes, as they were not included in income the relative poverty rate was even 37.5% in 2008, (in 2007 — 36.3%)

In 2008, a person was considered to be in at-risk-of-poverty if his/her monthly equalised disposable income was below 4,858 kroons. The at-risk-of-poverty threshold rose by 518 kroons compared to the previous year. Also in 2008 the difference in income between the poorest and richest fifth of the population stayed fivefold.

The elderly is rather the age group that still lives in poverty. In 2008, every third person aged 65 and older and 14% of persons aged 25–49 lived in relative poverty. Compared to previous years it can be noticed that the number of younger people living in relative poverty is increasing, and the number of persons aged 65 and older living in poverty is decreasing.  The main reason is more stable income of persons in pension age compared with other age groups.

By type of household the at-risk-of-poverty rate has increased the most during the year 7 percentage points in households with three and more children, and has decreased 8 percentage points in households with a single person aged 65 and over. In other households there were not so large variations in the at-risk-of-poverty rate.

Falling into the risk-of-poverty is related to the education level. In 2008, the at-risk-of-poverty rate of persons with basic or lower education (below upper secondary education) was 34%, which was more than four times higher than of persons with higher education (tertiary education) (8%).In recent years the trend shows that the relative poverty rate of less educated persons is increasing, while that of the persons with higher education is decreasing. Thus, a good education is an important presumption for the prevention of poverty.