THE IMPACT OF CONSUMPTION FROM OWN RESOURCES ON THE RATES OF SEVERE POVERTY AMONG THE PERSONS FROM HOUSEHOLDS IN ROMANIA
Autor (i): Cristina Stroe, Silvia Cojanu
JEL: I3, D1
Cuvinte cheie: Severe poverty, consumption from own resources, impact, dynamics, households
Abstract:
The own consumption is an important component in the framework of the income and expenditure of the population, that oscillated over the past 5 years between 14-18%. At the same time, the own consumption is an indicator that reflects to a great extent the level of the welfare of the population. The paper focused on the influence of own consumption on the severe poverty rates (a form of extreme poverty). Severe poverty rates have been estimated, determined at the threshold of 40% of the median income, for persons in the households, considering some of the main features of the household - the residence area (the component of own consumption is particularly important in the rural area), the number of people in the household, considering also age and gender. The severe poverty rates have been determined using the available income in which the component of own consumption has been included and then excluded and, through the differences obtained, we were able to analyze the influence of own consumption on households‘ severe poverty and how this influence has evolved in the period in question. Data used in simulations are part of the Household Budget Surveys (National Institute of Statistics, 2011-2014).