Living Conditions 2007

Living Conditions Survey 2007 is a part of the EU-SILC (European Union – Statistics on Income and Living Conditions) program that is obligatory for all members of the European Union. The aim of the program is long-term production of comparable data on living conditions in European Union countries. The data from the program serve (among others) as a basis for policies tackling poverty and social exclusion.

In the Czech Republic the Living Conditions Survey has been taking place since 2005 so in the near future it is to be launched for the fifth time. The households in the survey are visited repeatedly (once a year) for a period of four years. Annually, a quarter of the sample is dropped and then newly selected (4-year rotational panel). Probability sampling is utilized, the sample size being roughly 11 thousand households.

At the present moment, the CZSO is bringing out results pertaining to 2007. Living Conditions Survey 2007 was a sample survey (as opposed to census survey), which means that users should constantly bear in mind that the results are representative estimates biased by a certain statistical error.


HOUSEHOLD COMPOSITION

The size of an average household in the CR is 2.52 members. It remains more or less constant throughout the years. Two thirds of the Czech households are couples (whether with other household members or not). Two-parent families with dependent children constitute almost a half of these households. There are 11 per cent of non-couple households; the share of single-parent families is 4 per cent. A quarter of all the Czech households is constituted by individuals, prevailingly women.


HOUSING

The share of owner-occupied dwellings has increased. 40 per cent of households live in their own house, another 20 percent in their own flat. 23 percent of households rent their dwelling, 12 per cent live in co-op flats. As compared with 2006, the average housing expenditure has risen by 5 per cent and the rent by 7 per cent. So far, the gradual increase of regulated rent, prescribed legislatively, has not affected the results much. For an average household, housing expenditure represents 16 per cent of their net income.

Some of the households declare that housing costs and mortgage repayment burden their budgets. One fifth of all the households report that these expenses burden their budgets considerably, two thirds of the households state that they represent some burden. Only 12 per cent of households do not consider housing costs as a problem at all. Housing expenditure is a considerable burden for households of unemployed, households in the lowest income decile and lone-parent households. These households report their housing costs as high as about 30 per cent of their annual net income.

As far as quality of the dwelling and its vicinity is concerned, the biggest problem is noise (18 per cent of households). Other major problems are environmental problems, grime and pollution (16 per cent), damp dwelling (15 per cent) and vandalism and criminality (14 per cent).


INCOME

Both gross and net income has risen, in nominal as well as real terms. In 2007 the average net per capita income reached CZK 118 thousand. The highest per capita income was with households of self-employed (CZK 140 thousand) whereas households of unemployed reported the lowest income (58 thousand). Changes in tax legislation lead to higher year-to-year increase of low incomes and this, consequently, to an end of income differentiation rise.

The newest results show that income level is more and more influenced by education attainment. Among 10 percent of the highest income households there were 40 per cent of university graduates' households and 38 per cent of households whose heads received higher secondary education (with school leaving examination). On the other hand, households with heads of low education attainment (lower secondary - 56 per cent, primary - 19 per cent) find themselves among the poorest 10 percent of households most frequently.

The at-risk-of-poverty rate is the percentage of people whose disposable income has not reached the poverty threshold. The poverty threshold is defined as 60 per cent of the median income identified on all the individuals. The persons below the threshold cannot automatically be labeled as poor because we do not have the complete picture of them, lacking such information as savings, property. Low income is the first signal that a household may be in danger of poverty.

In the CR the overall at-risk-of-poverty rate (for the whole population) is 10 per cent. The CR thus ranks among the countries with the lowest income inequality in the EU. The highest share of persons at risk of poverty is among the unemployed (48 per cent); the most endangered household types are lone-parent families and households with 3 and more children (39 per cent, 30 per cent respectively).

Old age and survivors' pensions and other social transfers contribute substantially to lowering the threat of becoming poor. Without social transfers 38 per cent of the population would be in danger of poverty.

Detailed information can be found in Household Income and Living Conditions 2007 publication, which consists of various breakdowns (social groups, income distribution, number of children, persons economically active, household categories, size of municipality etc.) and includes selected Laeken (poverty) indicators. When required, it is possible to produce other breakdowns that are not included in this publication.