The Income situation of the private households and its impact on the food consumption in the Slovak Republic

Abstract

Accession of the Slovak Republic to the EU in 2004 opened up the new opportunities not only in the formation of incomes but also in changes of consumer habits of the population in Slovakia. The basis for these changes were given before 1989, since when it has been possible to monitor realization of reforms. After 1989 have been observed the changes in the evolution of the household income and expenditure structure. The analysis confirms the significant differences and unbalanced right-inclined distribution of income. Households in the fourth income quartile had 2.8 times higher incomes than families in the first income quartile ( Statistical Office of the Slovak Republic). Analyzed were the food groups that in terms of expenditure on food and food consumption took more than 6% share. The results confirm that income differentiation of households is also reflected in their different behavior on the food market. Most sensitive to changes in demand reacts income households with the lowest incomes. In terms of living standard, when satisfying the living needs of population, the disposable monthly income is highly crucial. In meeting the basic needs of households play an important role expenditures on food, housing and energy. The Slovak households have high expenditures on food in comparison with other EU countries. In the structure of consumption expenditures the expenditure on food has decreased in recent years but still represents the highest share (in 2009 it was 21.95%) in comparison with expenditure on housing and energy (19.54% share in 2009).Assessment of the standard of living of the population and its development is effected by several indicators. The key indicators that allow assessment of the standard of living and its development are the money income, consumption and expenditure for food, housing, culture, education and healthcare.Data on the household incomes and the household expenditures for the stated needs point at the standard of living of the population as well as various social groups. Important is also the reciprocal comparison of the differences in expenditures for basic living needs of the household. During the transformation process expanded the variability types and groups of households. Downtrend is spotted in the average size of the households and growing pluralism of the various forms of coexistence.