What it means to be poor: dimensions of economic hardship among older people living in poverty across Europe

Abstract

Abstract There is a lack of comparative and quantitative research on how poverty manifests itself in the economic wellbeing of older people across European countries. In this study, we focus in on two central dimensions of economic wellbeing: the ability to pay for usual expenses and unexpected expenses. Our aim is to find out how often older people living at risk of poverty experience hardship on these dimensions, how these dimensions overlap, and whether the incidence of hardship differs between the poor and the non-poor. The study is based on the cross-sectional component of the European Union Statistics on Income and Living Conditions (EU-SILC) 2018 survey, involving 29 countries and 148,432 respondents aged 65+ years. The analysis builds on both descriptive statistics and multinomial logistic regression, which takes into account differences in household characteristics between the poor and the non-poor. The results reveal that for the poor, meeting unexpected expenses is a more common problem than meeting usual expenses, although they typically experience hardship on both dimensions. Hardship among the poor is more frequent in Central Eastern and some Southern European countries, while poor people living in Continental and Nordic countries tend to fare better, even though relatively large numbers in these countries lack cash margin. The non-poor do also experience hardship, but to a lesser extent. The poor experience combined hardship relatively often in Continental European countries. Based on the results, we conclude that studies should pay closer attention to the different dimensions of economic wellbeing in old age.