What is the Effect of the Financial Crisis on Poverty? A Statistical Analysis of the Influence of Unemployment, Income Inequality and Social State on the Risk-to-Poverty Rate for 31 European Countries

Abstract:

In view of the elaboration of policies designed to help reach the  the European Union’s  target : “Europe 2020”  of lifting 20 million people out of poverty(Europe 2020.Commission proposes new Economic Strategy (2010), it is important to study the influence of  the following three socioeconomic factors, namely,  Inequality of income distribution measured by Gini coefficient, Social protection rate, as defined by Eurostat (EUROSTAT, Statistics Explained,2013;2017;2018),  and Unemployment rate ,on the economic indicator :at -Risk-of -poverty rate.In this paper,we derive some statistical models and we test them, using data of EUROSTAT for the 31 countries of Europe, relating ,the above socioeconomic indexes.Our main conclusion is that the income inequality which is a byproduct of the present financial crisis and of the past performance of the economic and political authorities, is a  main risk factor of the poverty of the European populations, especially in the south region of Europe.