More equal societies work better for everyone?

Seminar “Social Work and Poverty in Europe and in
the United States”
Arcavacata Campus - University of Calabria, Italy.- May 6 - 11, 2012
Monday May 7th
What is poverty
in Europe
More equal societies work better for
everyone?
Alessandro Sicora, University of Calabria
Summary
1. what is poverty (not only a question of money)
2. poverty in Europe (data)
3. poverty in Italy (data)
4. relative poverty and income inequality
4. more equal societies work better for everyone
5. the crisis in Europe: what about the future?
Poverty is...
(Pierson, Thomas, 2002: 358 - 360)


“a condition in which people are inhibited from
participation in society because of a serious
lack of material and social resources”
of two types:


Absolute ← no sustainability of physical life (no
minimum for food and shelter; eg. 1 US $)
Relative ← “lack of resources to obtain the
types of diet, participate in the activities and
have the living condition and amenities that are
customary of at least widely encouraged and
approved in the society to which a person
belongs”
Poverty in Europe
source: Eurostat (data 2010)
(http://epp.eurostat.ec.europa.eu/portal/page/portal/income_social_inclusion_living_conditions/data/main_tables)
At-risk-of-poverty threshold - In PPS
The threshold is set at 60 % of the national median equivalised disposable
income (after social transfers). It is expressed in Purchase Parity Standards
(PPS) in order to take into account differences in cost of living across EU
Member States.
At risk poverty threshold
The threshold is set at 60 % of the national median equivalised disposable
income (after social transfers). It is expressed in Purchase Parity Standards
(PPS) in order to take into account differences in cost of living across EU
Member States
Income quintile share ratio
The ratio of total income received by the 20 % of the population with the highest
income (top quintile) to that received by the 20 % of the population with the
lowest income (lowest quintile). Income must be understood as equivalised
disposable income.
Absolute poverty in Italy (%) - 2007-2010
Source: Istat, La povertà in Italia (http://www.istat.it/it/archivio/33524)
Nord
Centro
Mezzogiorno
Italia
2010
3,6
3,8
6,7 4,6
2009
3,6
2,7
7,7 4,7
2008
3,2
2,9
7,9 4,6
2007
3,5
2,9
5,8 4,1
Italia
2007
Mezzogiorno
2008
2009
2010
Centro
Nord
0,0
2,0
4,0
6,0
8,0
10,0
Relative poverty in Italy (%) - 2007-2010
Source: Istat, La povertà in Italia (http://www.istat.it/it/archivio/33524)
Nord
Centro
Mezzogiorno
Italia
2010
4,9
6,3
23,0
11,0
2009
4,9
5,9
22,7
10,8
2008
4,9
6,7
23,8
11,3
2007
5,5
6,4
22,5
11,1
Italia
2007
Mezzogiorno
2008
2009
Centro
2010
Nord
0,0
10,0
20,0
30,0
Italian region - Average Income (euro) (redditi Irpef 2009)
Source: http://www.comuni-italiani.it/statistiche/redditir2009.html
1 Lombardia 25.401 (14.848*)
2 Valle d'Aosta 23.185
3 Trentino-Alto Adige 23.756
4 Emilia-Romagna 23.224
5 Liguria 23.471
6 Friuli-Venezia Giulia 22.697
7 Piemonte 22.903
8 Lazio 25.811
9 Toscana 22.519
10 Veneto 22.575
11 Umbria 21.298
12 Marche 20.874
13 Abruzzo 20.280
14 Sardegna 20.638
15 Molise 20.048
16 Basilicata 19.352
17 Puglia 19.719
18 Sicilia 20.656
19 Campania 21.072
20 Calabria 19.448 (7.172*)
– Italia 22.891 (11.706*)
* = average/inhabitants
The notion of relative poverty...


“focuses on the degree to which people are
prevented from sharing the living standards,
opportunities and norms of well-being that a
society as a whole has created for itself” → ie.
ICT (Information and Communication
Technology) (Pierson, Thomas, 2002: 359)
and is related with inequality and income
distribution
Inequality: how much richer are the richest 20%
in each country than the poorest 20%?
8.0
Wilkinson & Pickett, The Spirit Level
8.5
7.2
6.7 6.8 6.8 7.0
UK
Po
r tu
ga
l
US
A
Sin
ga
po
re
6.1 6.2
d
No
rw
ay
Sw
ed
en
De
nm
ar k
Be
l gi
um
Au
st r
ia
Ge
rm
an
Ne
y
t he
r la
nd
s
Sp
ai n
Fra
nc
e
Ca
na
da
Sw
izt
erl
an
d
Ir e
lan
d
Gr
ee
ce
lan
Fin
Ja
pa
n
4.6 4.8
4.3
3.9 4.0
3.7
3.4
5.6 5.6 5.6 5.7
5.3
5.2
9.7
It a
ly
Isr
Ne
ae
l
w
Ze
ala
nd
Au
st r
ali
a
Income gaps
How many times richer are
the richest fifth than the
poorest fifth?
www.equalitytrust.org.uk
“Because more equal societies work better
for everyone” (1/4)
http://www.equalitytrust.org.uk
1. PHYSICAL HEALTH: People in more equal
societies live longer, a smaller proportion of
children die in infancy and self-rated health is
better.
2. MENTAL HEALTH: People in more equal
societies are far less likely to experience mental
illness.
3. DRUG ABUSE: People in more equal societies
are less likely to use illegal drugs.
4. EDUCATION: Children do better at school in
more equal societies.
5. IMPRISONMENT: Unequal societies are
harsher, they imprison a higher proportion of
people.
“Because more equal societies work better
for everyone” (2/4)
http://www.equalitytrust.org.uk
6. OBESITY: Obesity is less common in more
equal societies.
7. SOCIAL MOBILITY: There is more social
mobility in more equal societies.
8. TRUST AND COMMUNITY LIFE: Communities
are more cohesive and people trust each other
more in more equal societies.
9. VIOLENCE: Homicide rates are lower and
children experience less violence in more equal
societies.
10. TEENAGE BIRTHS: Teenage motherhood is
less common in more equal societies.
11. CHILD WELL-BEING: Unicef measures of
child well-being are better in more equal
societies.
“Because more equal societies work better
for everyone” (3/4)
http://www.equalitytrust.org.uk
11. CHILD WELL-BEING: Unicef measures of
child well-being are better in more equal
societies.
12. EQUALITY NOT GROWTH: Further economic
growth will not improve our health or well-being.
For a better quality of life we need greater
income equality.
13. RICH AND POOR COUNTRIES: More equal
societies spend a higher proportion their income
on overseas aid and perform better on the
Global Peace Index.
14. EQUALITY AND GLOBAL WARMING:
Inequality fuels status competition, individualism
and consumerism. It makes it harder to gain
public support for policies to reduce global
warming.
“Because more equal societies work better
for everyone” (4/4)
Health and social problems are not related
to national income per head, but are worse
in more unequal countries
People in more unequal countries trust
each other less and are imprisoned more
Social mobility is lower in more unequal
countries
(Wilkinson, Pickett, 2009)
Neither health nor social problems are related to
national income per head
Index of health and social problems
Index of:
• Life expectancy
• Math & Literacy
• Infant mortality
• Homicides
• Imprisonment
• Teenage births
• Trust
• Obesity
• Mental illness
– incl. drug &
alcohol addiction
• Social mobility
Wilkinson & Pickett, The Spirit Level
www.equalitytrust.org.uk
Health and social problems are worse
in more unequal countries
Index of health and social problems
Index of:
• Life expectancy
• Math & Literacy
• Infant mortality
• Homicides
• Imprisonment
• Teenage births
• Trust
• Obesity
• Mental illness
– incl. drug &
alcohol addiction
• Social mobility
Wilkinson & Pickett, The Spirit Level
www.equalitytrust.org.uk
People in more unequal countries
trust each other less
Wilkinson & Pickett, The Spirit Level
www.equalitytrust.org.uk
Imprisonment rates are higher in
more unequal countries
Wilkinson & Pickett, The Spirit Level
www.equalitytrust.org.uk
Social mobility is lower in more unequal countries
Wilkinson & Pickett, The Spirit Level
www.equalitytrust.org.uk
The crisis in Europe:
what about the future?

“L'intera Europa, non solo l'area euro, è
destinata a un decennio di bassa crescita.
Pesano i debiti pubblici e privati del passato, gli
squilibri competitivi da riassorbire e l'andamento
demografico. Quando la crescita dell'economia
è vicina all'1% la distribuzione del reddito
diventa un gioco a somma zero. Chi guadagna
lo fa solo a scapito di qualcuno che perde.
Inevitabilmente il tema dell'equità diventa
centrale.” (Bastasin C. “Europa e Italia.
L'obbligo di dare certezze” in Il Sole 24 Ore,
24.04.12, anno 148, n. 113, p. 1)
The crisis in Europe:
what about the future?
“The whole of Europe, not only the euro area, is
bound to a decade of low growth. This is
because of the public and private debts of the
past, competitive imbalances and the
demographic trend. When economy growth is
close to 1% of the income distribution becomes
a zero sum game. The one who gains can do so
only at the expense of someone who loses.
Inevitably the issue of equity becomes central.”
(Bastasin C. “Europa e Italia. L'obbligo di dare
certezze” in Il Sole 24 Ore, 24.04.12, anno 148,
n. 113, p. 1)
References





Istat (2011), La povertà in Italia, Istat, Roma, On-line:
http://www.istat.it/it/archivio/33524
Pierson J., Thomas M. (2002), Collins Dictionary of
Social Work, Collins, Glasgow
Wilkinson R., Pickett K. (2009), The Spirit Level,
Penguin
Internet resources
Comuni Italiani: http://www.comuni-italiani.it

The Equality Trust: http://www.equalitytrust.org.uk/

Eurostat: http://epp.eurostat.ec.europa.eu/