Definition:
The at-risk-of-poverty threshold is the income value below which income poverty is assumed.
Two risk-of-poverty thresholds — identified by different methods — are presented:
New procedure: The Social Report NRW 2012 brought the procedure for determining the risk of poverty threshold into line with the EU standard. According to this, the at-risk-of-poverty threshold is 60 % of the median equivalised income of the North Rhine-Westphalian population. The new OECD scale is used to determine equivalised incomes. After that, the head of household is assigned a weight of 1, other household members aged 14 or more a weight of 0.5 and household members under the age of 14 are assigned a weight of 0.3.
Old procedure: In earlier reports from the North Rhine-Westphalian social reporting, a different procedure was used. According to this, the at-risk-of-poverty threshold is 50 % of the arithmetic mean of the equivalised income of the North Rhine-Westphalian population. The old OECD scale is used to determine equivalised incomes. Thereafter, the head of household is assigned a weight of 1, other household members aged 14 and over a weight of 0.7, and a weight of 0.5 for household members under the age of 14.
Note:
It should be noted that in the microcensus the level of income is underestimated. When answering the question on net household income, the respondents take into account in particular incomes that have a relevant share of the total household income and are regularly received, while irregularly received and smaller parts of income are more likely to be forgotten. This should be taken into account when interpreting the risk-of-poverty threshold. For analysis of the
Note on the revision of the results for 2011 and 2012:
The extrapolation framework for the microcensus has been changed: Until the 2010 survey year, the extrapolation is based on the updated results of the 1987 census, from 2011 onwards on the updated results of the 2011 census. The update for the 2013 survey year revised the results for 2011 and 2012.
Data source:
IT.NRW, Microcensus
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