How wealthy are the poor

people in Slovenia?

Stanka Intihar

Statistical office of the Republic of Slovenia

stanka.intihar@gov.si

Expert meeting on measuring poverty and inequality,

Budva, Montenegro, 26-27 September 2017

Definitions, concepts (1)

• Microdata from SILC 2016 (income 2015) and Real Estate

Register (REN) 2015 linked through a (personal) statistical

identification number

• Observation unit: household (8,585)

• Unit of analysis: person=hh member (25,637)

• Value of real estate of hh = sum of values of real estate of all hh

members; the same value attributed to all hh members (value of

real estate per hh member or equivalized hh member)

• Relative poverty

• Poverty threshold: 60 % of median equivalised income or/and real

estate value

• OECD modified equivalence scale (1/0.5/0.3)

• Deciles in the tables = for equivalised disposable income

Definitions, concepts (2)

• RESIDENTIAL real estate = house or dwelling a household

owns and lives in (home)

• OTHER real estate = houses, dwellings and other buildings

a household owns and does not live in (empty or rented) +

land (agricultural, forest, land for building…)

• TOTAL real estate = real estate of natural persons (not legal

entities)

• Generalized market value of real estate, calculated at the

Surveying and Mapping Authority of the Republic of

Slovenia (GURS) for taxation purpose (not used yet)

Share of dwellings, persons, income and real estate

value by type of ownership (%), Slovenia,

Housing Census 2015, SILC 2016

More than 90% of population live in their own dwellings (85%) or dwelling of

relatives, friends (8%).

Tenants live in 8% of all occupied dwellings, they own 7% of total income and

less than 1% of total real estate value.

Income poverty: tenants=36.1%, owners: 11.5%

Real estate poverty: tenants=95.4%, owners: 26.8%

Experimental data - not to be distributed or published.

Occupied

dwellings

(census)

Occupants

(census)

Persons in

private hh

(SILC)

Income

(SILC)

Total real

estate value

(SILC)

owner + users-

occupied dwellings 91.8 93.2 90.2 92.6 99.4

rented dwellings 8.2 6.8 9.8 7.4 0.6

Type of ownership -

TOTAL 100.0 100.0 100.0 100.0 100.0

Total value of real estate owned by households in SILC

2016 and Real Estate Register 2015, Slovenia

SILC is coherent with Real Estate Register data. Total real estate value in

SILC represents 95% of total real estate value from Real Estate Register.

Experimental data - not to be distributed or published.

45

31

18

13

76

44

36

22

14

80

0

10

20

30

40

50

60

70

80

90

RESIDENTIAL REALESTATE (103.5%)

OTHER REAL ESTATE(85.5%)

other dwellings orbuildings (83.4%)

land, forest (88.7%) TOTAL REAL ESTATE(95.3%)

billion

SILC 2016 (income 2015) REN 2015

Structure of real estate value owned by households in

SILC 2016 and Real Estate Register 2015, Slovenia

SILC is coherent with Real Estate Register data.

Experimental data - not to be distributed or published.

5955

24 27

17 18

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

SILC 2016 (income 2015) REN 2015

land, forest

otherdwellings orbuildings

residentialreal estate

Correlation between equivalised disposable income

and equivalised value of real estate,

Slovenia, SILC 2016

correlation coefficient=0.5 (medium high); p < 0.001 (statisctically significant)

DOH1=equivalised disposable income,

NEPR1= equivalised value of real estate

Correlation between disposable income and value of

real estate per hh member, Slovenia, SILC 2016

correlation coefficient=0.55 (medium high); p < 0.001 (statisctically significant)

DOH2=disposable income per hh member,

NEPR2= value of real estate per hh member

Mean value of income and real estate, Slovenia,

SILC 2016

Experimental data - not to be distributed or published.

mean per hh

member (EUR) % of mean income

income 8,732 100

residential real estate 22,515 258

houses-total 19,647 225

dwellings-total 10,149 116

other real estate (buildings and land) 15,363 176

other dwellings or buildings 9,073 104

land, forest 6,290 72

total real estate 37,879 434

Share of poor people and share of total income or total

value of real estate they own, Slovenia, SILC 2016

Large difference between poverty thresholds (EUR):

15,251 3,226 24,539 7,396 23,230 12,037 32,469

Experimental data - not to be distributed or published.

36

44

34

14

32

24

30

3 1 46

9

6 6

0

5

10

15

20

25

30

35

40

45

50

residential realestate

other real estate total real estate disposableincome

income +residential real

estate

income + otherreal estate

income + totalreal estate

%

poverty rate (%) share of income or real estate value - poor people (%)

Share of poor people by deciles of equivalised

disposable income (%), Slovenia, SILC 2016

The majority of real estate poor are in the first 6 income deciles, but

they are also in the highest income deciles.

Experimental data - not to be distributed or published.

eq. income decile real estate disposable income income + real estate

1 17 72 20

2 14 28 16

3 12 0 13

4 11 0 12

5 10 0 10

6 10 0 9

7 8 0 7

8 7 0 5

9 6 0 5

10 3 0 2

poor (%) 100 100 100

number of poor 675.000 280.000 600.000

poverty threshold (EUR) 24.539 7.396 32.469

poverty rate (%) 34 14 30

Share of equivalised income and/or equivalised value

of real estate by deciles of equivalised disposable

income (%), Slovenia, SILC 2016

The share of total value of real estate in the first 3 income deciles is higher

than the share of total disposable income in the same deciles.

Experimental data - not to be distributed or published.

eq. income

decile

residential

real estate

other dwellings

or buildings

land,

forests

total real

estate

disposable

income

income +

total real

estate

1 6 5 9 6 4 6

2 7 8 9 8 6 7

3 9 8 9 8 7 8

4 8 7 9 8 8 8

5 9 7 10 9 9 9

6 9 9 10 9 10 9

7 11 9 10 10 11 10

8 11 10 11 11 12 11

9 12 14 11 12 14 13

10 18 23 13 18 20 19

total 100 100 100 100 100 100

Share of income of the richest 10% or real estate value

of the wealthiest 10% of Slovene population (%),

SILC 2016

Deciles are calculated for each of type of the real estate separately.

Experimental data - not to be distributed or published.

33

54

35

2123

39

31

0

10

20

30

40

50

60

residential realestate

other real estate total real estate disposableincome

income +residential real

estate

income + otherreal estate

income + totalreal estate

%

Gini index for income and/or real estate,

Slovenia, SILC 2016

Gini: 0.24 for income, 0.52 for real estate and 0.44 for the combination of both

Deciles are calculated for each of type of the real estate separately.

Experimental data - not to be distributed or published.

0.53

0.71

0.52

0.24

0.35

0.49

0.44

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

residential realestate

other real estate total real estate income income +residential real

estate

income + otherreal estate

income + totalreal estate

Poverty rates by age class and income or real estate,

Slovenia, SILC 2016

Real estate poverty is higher than income poverty (the most vulnerable are

people below 50 years of age),

for people 65+ the real estate poverty is lower than income poverty.

Experimental data - not to be distributed or published.

45

49

38

25

20

36

50

55

44

36

30

4443

46

35

23

16

34

13 12 12

15

18

14

0

10

20

30

40

50

60

0-24 25-39 40-49 50-64 65+ total

%residential real estate other real estate total real estate income

Poverty rates by age class and income + real estate,

Slovenia, SILC 2016

Combination of income and real estate gives slightly lower poverty rates (the

lowest for 65+ and 50-64). The most vulnerable to income poverty are people 65+)

Experimental data - not to be distributed or published.

4143

34

2119

32

27 27

2220

21

24

38

41

31

20

15

30

1312 12

15

18

14

0

5

10

15

20

25

30

35

40

45

50

0-24 25-39 40-49 50-64 65+ total

%

income + residential real estate income + other real estate income + total real estate income

Poverty rates by household type and income or real

estate, Slovenia, SILC 2016

Real estate poverty is much higher for households with dependent children (and

also 1 person hh) than households without dependent children.

Experimental data - not to be distributed or published.

43

32

14

23

53

44

3336

55

42

24

30

65

51

34

44

40

27

11

20

51

43

30

3436

15

97

25

118

14

0

10

20

30

40

50

60

70

1 person HH 2 adults<65 2 adults, 1 65+ other HH, nodep. children

single parentHH

2 adults, dep.children

other HH withdep. children

total

%residential real estate other real estate total real estate income

Poverty rates by household type and income + real

estate, Slovenia, SILC 2016

2 adults, of which at least one is 65+ have the lowest income and real estate

poverty of all household types.

Experimental data - not to be distributed or published.

43

29

13

17

52

41

25

32

43

23

1311

51

25

15

24

39

25

10

15

50

38

23

30

36

15

97

25

11

8

14

0

10

20

30

40

50

60

1 person HH 2 adults<65 2 adults, 1 65+ other HH, nodep. children

single parentHH

2 adults, dep.children

other HH withdep. children

total

%income + residential real estate income + other real estate income + total real estate income

Conclusions

• SILC coherent with Real Estate Register data

• medium high correlation between disposable income and value of real

estate

• real estate inequality much higher than income inequality

• real estate poverty (34%) much higher than income poverty (14%)

• % of income poor increases with age, % of real estate poor decreases

with age

• real estate poverty is much higher for hh with dependent children (and

also 1 person hh) than hh without dependent children

• the income poor (14%) own 6% of total disposable income while the

richest 10% own 21% of total disposable income

• the real estate poor (34%) own 4% of total value of real estate while the

richest 10% own 35% of total total value of real estate

• 13.9% of income poor people own 10.3% of total value of real estate

Future steps• analyze real estate poverty for different population groups, spatial units

• exclude the real estate used by farmers and the self-employed to earn

income from the total value of real estate

• exclude mortgages still to be paid (other housing loans?)

• include other wealth (stocks and bonds, deposits, cars)

• explore the possibility of using the Household Finance and Consumption

Survey (HFCS) for 2014 (income 2013) – received from the Bank of

Slovenia (next in 2017)

• make corrections of income and real estate values for life expectancy and

interest rate

• investigate coherence with national accounts

• participate in joint OECD/Eurostat Expert Group on Micro Statistics on

Household Income, Consumption and Wealth

• analyze income, poverty and wealth of the total population (Income

Database being established within grant Merging Statistics and

Geospatial Iinformation + Real Estate Register)