75439 The World Bank Consumption Poverty in the Republic of Kosovo in 2010 December 2012 The World Bank Europe and Central Asia Region Kosovo Agency of Statistics Poverty Reduction and Economic Social Statistics Department Management Unit Living Standards Sector www.worldbank.org www.esk.rks-gov.net The World Consumption Poverty in the Bank Republic of Kosovo in 2010 2 Consumption Poverty in the Republic of Kosovo in 2010 Concepts and definitions This report focuses on absolute poverty, comparing living standards to a poverty threshold that is held fixed in real terms over time and space. The poverty line is updated over time to account for changes in prices. Consumption is used as the measure of individual well-being or welfare. Household consumption is calculated as the total value of a household’s expenditure on food and nonfood items as recorded in the Household Budget Survey (a nationally representative survey conducted each year), including imputed values of any home-produced food items that were consumed by the household. In keeping with past practices in Kosovo, expenditures on consumer durable items and rent are excluded from the consumption measure. The actual value of household consumption depends on the size and demographic composition of the household. Therefore household consumption is divided by the number of adult equivalents in the household to arrive at the welfare measure, which is consumption per adult equivalent, expressed in Euros at 2010 prices (2009 prices for 2009 estimates). Two poverty lines are used in the analysis, a poverty line that is considered adequate to meet basic needs and an extreme poverty line. Both poverty lines are based on the poverty lines that were calculated for earlier poverty assessments (World Bank 2005). After adjusting for inflation, the poverty line and extreme poverty line are €1.61 and €1.07 per adult equivalent per day for 2010 and €1.55 and €1.02 respectively for 2009. The two measures of consumption poverty used in this report are the poverty headcount ratio and the poverty gap. The poverty headcount ratio measures how many people are poor, and is simply the percentage of the population whose consumption per adult equivalent is less than the poverty line. The poverty gap measures not only how many people are poor, but also the depth of poverty among the poor, and therefore can detect changes in welfare that occur below the poverty line, such as households becoming less poor, but not enough to cross the poverty line. The 2009 and 2010 HBS surveys used the new master sample that was developed in 2008 and therefore data for the two years are comparable. For further information please contact: T: +381 38 200 31 143 E: eskinfo@rks-gov.net Publisher: Agency for Statistics of Kosovo Zenel Salihu St, nr. 4 Prishtina, Kosovo When using the data please state the source 3 The World Consumption Poverty in the Bank Republic of Kosovo in 2010 Figure 1: Poverty and extreme poverty headcount by location (%) 2009-2010 Source: HBS 2009-2010 35.3 34.5 40 33.1 30.7 29.2 35 26.7 30 25 2009 20 2010 13.2 12.1 12.5 15 10 7.8 8.5 8.2 5 0 Urban Rural Total Urban Rural Total Full Poverty Extreme Poverty Figure 2: Poverty gap index for full and extreme poverty line (%) 2009-2010 Source: HBS 2009-2010 12 10 8 6 4 2 0 Urban Rural Total Urban Rural Total Poverty Poverty Poverty Extreme Extreme Extreme Poverty Poverty Poverty 2009 9.8 9.5 9.6 3.0 2.7 2.8 2010 6.9 7.5 7.3 1.9 1.8 1.9 Table 1: Distribution of the poor by location (%) 2009-2010 Source: HBS 2009-2010 Distribution of the Extreme Distribution of Population Distribution of the Poor Poor Area 2009 2010 change 2009 2010 change 2009 2010 change Urban 37.1 37.4 0.2 35.6 34.2 -1.4 39.1 35.4 -3.7 Rural 62.9 62.6 -0.2 64.4 65.8 1.4 60.9 64.6 3.7 Overall 100.0 100.0 0.0 100.0 100.0 0.0 100.0 100.0 0.0 4 Consumption Poverty in the Republic of Kosovo in 2010 Table 2: Gini coefficient (%) 2009-2010 Source: HBS 2009-2010 Area 2009 2010 Urban 33.9 31.1 Rural 27.2 27.1 Overall 30.2 29.0 Figure 3: Poverty incidence by household size (%) 2010 Source: HBS 2010 50 Poverty headcount ratio (%) 40 34 35 33 30 30 29 25 25 21 22 22 20 10 0 1 2 3 4 5 6 7 8 9 10 Number of people in household Figure 4: Poverty incidence and distribution of poverty by household size (%) 2010 Source: HBS 2010 25 20 15 10 5 0 1 2 3 4 5 6 7 8 9 10+ Proportion of poor population % 0.2 1.9 2.8 7.5 14.1 19.2 16.2 11.6 7.5 19.1 Proportion of total population % 0.3 2.2 3.8 9.9 16.5 16.7 13.7 11.1 6.6 19.2 5 The World Consumption Poverty in the Bank Republic of Kosovo in 2010 Table 3: Poverty headcount rate and distribution of the poor by main income source of household (%) 2009- 2010 Source: HBS 2009-2010 Main income source Poverty Headcount Rate Distribution of the Poor Distribution of Population   2009 2010 2009 2010 2009 2010 Public sector wages 23.7 19.7 17.3 17.5 25.2 25.9 and salaries Private sector wages 36.4 28.5 20.7 21.9 19.6 22.4 and salaries Farming 36.3 38.5 8.2 9.8 7.7 7.4 Per diem work 55.2 43.5 17.5 13.5 10.9 9.1 Other household business 20.6 16.1 8.7 8.5 14.5 15.5 Pensions 43.4 43.6 7.6 8.6 6.1 5.8 Remittances from abroad 21.9 24.2 5.5 6.5 8.6 7.9 Other remittances 32.9 38.3 0.3 0.6 0.3 0.5 Social assistance 83.1 73.0 12.6 10.9 5.2 4.4 Other 32.5 46.8 1.6 2.2 1.7 1.3 Overall 34.5 29.2 100.0 100.0 100.0 100.0 Figure 5: Poverty by sex of head of household (%) 2009-2010 Source: HBS 2009-2010 40 Male Female 30 34.3 37.2 29.1 30.6 20 10 0 2009 2010 Figure 6: Poverty by sex of individual (%) 2009-2010 Source: HBS 2009-2010 40 Male Female 30 33.9 35.0 20 28.5 29.9 10 0 2009 2010 6 Consumption Poverty in the Republic of Kosovo in 2010 Figure 7: Poverty headcount rate and distribution of the poor by highest level of education completed (aged 15 and above) (%) 2010 Source: HBS 2010 50 45.1 45 40 38.7 38.0 35 34.9 32.8 33.3 30 25 24.7 20 18.0 15 14.6 Poverty head rate 11.6 10 Distribution of the poor 8.7 Distribution of population 5 3.6 0 Didn’t complete primary Primary Secondary or vocational Tertiary Table 4: Poverty incidence and distribution of the poor by main activity of individuals (15 years and above) (%), 2009-2010 Source: HBS 2009-2010 Poverty Headcount Main activity Distribution of the Poor Distribution of Population Rate   2009 2010 2009 2010 2009 2010 Employer 6.9 7.6 0.2 0.2 0.8 0.6 Employed with salary 20.6 17.0 10.1 10.6 16.2 17.6 Subsistence farmer 33.0 31.5 3.4 3.3 3.3 3.0 Per diem work 50.1 40.4 6.1 4.4 4.0 3.1 Other self-employed 20.1 15.6 2.0 2.2 3.3 4.0 Unpaid family worker 15.9 22.7 0.4 0.7 0.8 0.8 Pupil/student 32.3 28.9 16.2 16.8 16.5 16.4 Retired or disabled 32.4 28.1 11.8 11.7 11.9 11.7 Unemployed 39.0 33.9 29.7 29.0 25.0 24.1 Housekeeper 35.8 31.4 18.8 20.5 17.2 18.4 Other 48.1 66.4 1.5 0.6 1.0 0.2 Overall 32.9 28.2 100.0 100.0 100.0 100.0 7 Consumption The World Poverty in the Bank Republic of Kosovo in 2010 December 2012 Design by: