The household reference person (HRP) is defined by Eurostat for the purposes of the ECHP as the owner or tenant of the accommodation or, if a couple are jointly responsible, the older of the two.8 Table 4.7 shows the pattern of risk in these terms when the
poverty line is derived as 60 per cent of the median. We see that households where the reference person is ill/disabled, unemployed, or in home duties have the highest risk, with two-thirds of the first group falling below the threshold and just less than half of the others. For those in home duties a significant increase was observed from 21 per cent in 1994 to 47 per cent in 1998 but has remained stable between then and 2001. For the unemployed an increase was observed between 1994 and 1998 from 51 to 59 per cent but a significant decline to 45 per cent was observed in 2001. For the ill
4.3
Labour Force
Status
8 The HRP’s status is used as this will be more likely to define or set the living
Table 4.7: Percentage of Persons Below 60 Per Cent of Median Income by Labour Force Status 1994 1997 1998 2000 2001 Employee 3.2 4.7 2.6 6.5 8.1 Self-employed 16.0 14.4 16.4 17.9 14.3 Farmer 18.6 16.7 23.9 24.1 23.0 Unemployed 51.4 57.7 58.8 57.1 44.7 Ill/disabled 29.5 52.5 54.5 52.2 66.5 Retired 8.2 13.5 18.4 30.3 36.9 Home duties 20.9 32.6 46.8 44.3 46.9 All 15.6 18.0 19.8 20.9 21.9
and disabled a very sharp increase was observed between 1994 and 1997 from 30 per cent to 53 per cent and a further sharp rise in 2001 to 67 per cent. Although the risk of poverty faced by those households where the reference person is retired has been increasing over time, the risk is still a great deal lower than those households where the HRP is ill/disabled, unemployed or in home duties. Where the reference person is employed the risk is by far the lowest – though between 1998 and 2001 it increased from 3 per cent to 8 per cent and the relative advantage the employed enjoyed over the unemployed fell from 23:1 to 5:1.
Table 4.8 shows the distribution of persons below the 60 per cent line across types of household. Despite their high level of risk, only about 12 per cent of persons below this threshold are in households with an ill/disabled reference person and 7 per cent in households with an unemployed reference person. Again these trends run in dramatically different directions with the figure for the ill/disabled doubling over time while the figure for the unemployed is only one- sixth of its 1994 level. About 30 per cent are in households where the reference person was engaged in home duties, which is close to double its 1994 level. Just below 20 per cent are retired, which involves a tripling of the 1994 level. Despite their very low risk, 19 per cent are in households where the reference person is an employee, a marked increase since 1998. Between 1994 and 2001 there has been a dramatic transformation in the composition of the poor reflecting the sharp decline in unemployment and the failure of vulnerable groups such as the ill/disabled, the retired and those in home duties to keep pace with the advances made by those in employment.
Table 4.8: Composition of Persons Below 60 Per Cent of Median Income by Labour Force Status of Reference Person, Living in Ireland Surveys 1994, 1997, 1998, 2000 and 2001 1994 1997 1998 2000 2001 Employee 8.3 11.5 6.0 15.4 18.8 Self-employed 10.1 7.8 8.3 8.2 6.6 Farmer 10.6 8.0 10.4 8.9 7.6 Unemployed 41.1 29.6 22.9 12.2 7.3 Ill/disabled 6.2 10.4 9.1 10.7 11.9 Retired 6.0 9.1 12.0 16.3 18.8 Home duties 17.8 23.6 31.4 28.4 29.0 All 100.0 100.0 100.0 100.0 100.0
THE PROFILE OF THOSE BELOW INCOME POVERTY LINES IN 2001 25
Tables 4.9 and 4.10 show the pattern of risk and incidence for persons when the poverty line is 50 per cent of the median. Risk level is clearly highest for those in households where the reference person is ill/disabled with six out of ten falling below this threshold. The next highest level of approximately one in three is observed for the unemployed and those in home duties. In no other case does the risk rise above 15 per cent. In composition terms, households where the HRP is in home duties made up one in three of those under the 50 per cent median income line in 2001 and the ill and disabled make up one in five of those below the threshold. Sharp increases over time are observed for the ill/disabled, those in home duties and the retired with sixfold increases in poverty risk in the first case and a fourfold increase in the latter. For the unemployed the poverty level doubled between 1994 and 1997 and then remained somewhat stable. The shift for the ill and disabled was particularly sharp between 1994 and 1998 while the trend for the retired was more even over time.
Table 4.9: Percentage of Persons Below 50 Per Cent of Median Income by Labour Force Status of Household Reference Person, Living in Ireland Surveys 1994, 1997, 1998, 2000 and 2001 1994 1997 1998 2000 2001 Employee 0.6 1.2 0.4 2.3 2.9 Self-employed 9.9 10.7 12.6 12.7 10.6 Farmer 10.2 6.2 5.5 17.1 12.0 Unemployed 19.1 39.8 41.0 37.3 33.8 Ill/disabled 10.1 27.5 43.6 45.3 59.0 Retired 4.0 2.1 6.0 12.1 15.3 Home duties 5.7 8.9 21.2 24.8 31.2 All 6.0 8.4 9.9 12.0 12.9
Table 4.10: Composition of Persons falling Below 50 Per Cent of Median Income by Labour Force Status of Reference Person, Living in Ireland Surveys 1994, 1997, 1998, 2000 and 2001 1994 1997 1998 2000 2001 Employee 3.8 6.6 2.0 9.6 11.5 Self-employed 16.2 13.0 12.4 10.1 8.3 Farmer 15.0 6.5 4.7 11.0 6.8 Unemployed 39.5 44.8 31.2 13.9 9.3 Ill/disabled 5.5 12.0 14.2 16.2 18.0 Retired 7.6 3.1 7.6 11.4 13.3 Home duties 12.5 14.1 27.9 27.8 32.8 All 100.0 100.0 100.0 100.0 100.0
Turning to the 70 per cent of median line, in Tables 4.11 and 4.12 we document the pattern of risk and incidence. In terms of risk, the most striking finding is the exceptionally high level of 70 per cent for those in households where the HRP is someone who is ill or disabled. However, this level is not a new phenomenon and the
deterioration of their position over time largely relates to their distribution below the 70 per cent line. After 1997 this also holds for those in home duties. For the retired on the other hand the trend is much more pronounced with a doubling of the rate between 1994 and 1997 from 17 per cent to 32 per cent and a further sharp increase between 1998 and 2001 to 49 per cent. However, the deterioration in the position of the retired is also noteworthy. The relative position of the retired deteriorates sharply as one moves from the 50 per cent line to the 70 per cent line. While only 15 per cent had been found below the 50 per cent line this rises to almost 50 per cent for the 70 per cent line – a similar level to that for the unemployed. The composition pattern is however, quite similar to that seen with the 60 per cent of median line. For the unemployed the 2001 figures confirm the picture observed at the 50 per cent and 60 per cent line with a reduction in the percentage found below the poverty line.
Table 4.11: Percentage of Persons Below 70 Per Cent of Median Income by Labour Force Status of Household Reference Person, Living in Ireland Surveys 1994, 1997, 1998, 2000 and 2001 1994 1997 1998 2000 2001 Employee 7.0 10.1 6.5 10.8 12.6 Self-employed 20.0 25.1 23.5 25.6 22.6 Farmer 28.9 24.8 30.9 35.2 35.9 Unemployed 70.3 68.4 67.9 63.7 49.2 Ill/disabled 60.9 67.0 63.2 61.0 69.8 Retired 17.4 31.8 31.0 40.3 48.9 Home duties 48.8 56.0 59.0 57.2 59.9 All 26.7 28.7 26.9 28.1 29.3
Table 4.12: Composition of Persons Below 70 Per Cent of Median Income by Labour Force Status of Reference Person, Living in Ireland Surveys 1994, 1997, 1998, 2000 and 2001 1994 1997 1998 2000 2001 Employee 10.7 15.6 11.0 19.0 21.7 Self-employed 7.4 8.6 8.6 8.7 7.8 Farmer 9.6 7.4 9.8 9.6 8.9 Unemployed 33.0 21.9 19.3 10.1 6.0 Ill/disabled 7.4 8.3 7.7 9.3 9.4 Retired 7.5 13.2 14.7 16.1 18.6 Home duties 24.4 25.0 28.9 27.2 27.6 All 100.0 100.0 100.0 100.0 100.0