New European statistical method (Eurostat)
The meted recently introduced by the Eurostat for the calculation of low income is a version adopted from the above method. The modifications introduced with regard to the traditional approach are as follows:
a) Use of median in substitution for the average.
b) Application of the 60% level of the median instead of 50% of the average.
c) Application of the following corrected scale:
| · 1st adult: | 1.0 |
| · Each supplementary adult: | 0.5 |
| · Each dependent person under the age of 14: | 0.3 |
It should be pointed out, however, that the tendency is not to speak of low income rather than poverty in this approach. In this way, the following low-income threshholds are defined.
Threshholds of low income according to the Eurostat method
(Data in euros)
| Size of household | Low income |
| 1 person | 535,10 |
| 2 persons | 802,65 |
| 3 persons | 963,18 |
| 4 persons | 1123,71 |
| 5 persons | 1284,24 |
Source : Survey on Poverty and Social Inequalities 2.000
Scale 0,5 for second person and 0,3 for the rest.
For the research and to draw a parallel with the traditional statistical meted, serious situations are considered to be below 50% of the threshholds defined in the above table (which is in practice the equivalent to setting the serious poverthy threshhold at 30% of the equivalent median value).