GSB 7.1 Standardlösung

Poverty risk rate

The poverty risk rate (also at-risk-of-poverty rate) describes the proportion of people, who live below the poverty line, measured by the net income of the respective household need-weighed by number and age of household members (equivalent net income). By this definition, people are at risk of poverty, when they have less than 60 % of the societal mean equivalent net income on hand. Socioeconomic disadvantages, for example with regard to the net income, are associated with a higher risk for developing type 2 diabetes (Agardh et al. 2011; Heidemann et al. 2019; Lampert et al. 2013).

Key messages

  • In Germany in 2023, 16.6% of the adult population and approximately one fifth of children and adolescents are at risk for poverty.
  • Women are more frequently at risk for poverty than men and young adults and the elderly are more frequently at risk for poverty than other age groups.
  • Considerable differences in the poverty risk rate can be observed between the federal states.

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trend

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cross-section

By state

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  • By gender

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  • By age

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  • By education group

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Result

The poverty risk rate of the adult population in Germany in 2023 is 16.6% (women: 17.6%; men: 15.5%) and 20.7% among children and adolescents. The highest proportion (25.0%) in 2023 can be observed in the age group of the 18- to 25-year-olds (women: 26.5%; men: 23.6%). The poverty risk rate then falls gradually down to 12.5% among the 50- to 65-year-olds (women: 13.2%, men: 11.8%) before it rises again to 18.1% among those aged 65 and older (women: 20.2%; men: 15.4%). In all age groups and all federal states, women are more often at risk for poverty than men. Individuals from households where the main income earner has a high level of education (7.3%) are less at risk for poverty than individuals from households where the main income earner has a low level of education (38.5%). There are considerable differences between the federal states. While Bremen has the highest poverty risk rate with 28.8 % (women: 29.3%; men: 28.3%), the rate is lowest in Bavaria with 12.8% (women: 14.0%; men: 11.5%). The risk rate has risen overall since 2005 (adults: 14.7%, children and adolescents: 19.5%).

Conclusion

The poverty risk rate has risen overall since 2005. Across all age groups and all federal states, women are more often at risk for poverty than men. There are also differences between the age groups and federal states. Lowering the poverty risk, for example by means of sociopolitical measures to improve the financial situation of the population with increased poverty risk, should thus be considered in order to reduce the risk for noncommunicable diseases, such as type 2 diabetes. Changes in the food taxation should also be pursued in order to make access to healthy food financially easier (Drewnowski 2009). Due to the fact that the poverty risk can already affect the health behaviour and the state of health in childhood and adolescence, prevention services should also be designed so that health inequalities are reduced (Lampert et al. 2019).

Show more information on methodology and data sources

Definition

The indicator poverty risk rate is defined as proportion of the people, whose equivalent net income is less than 60% of the median of the equivalent net income of the population in private households (= poverty risk threshold). The equivalent net income is a need-weighted per capita income calculated on the basis of the net household income for each household member.

Reference population

The poverty risk rate is based on the federal median, i.e. the described calculations are based on the average income (median) of the adult population in private households nationwide.

Data source

Microcensus. Approximately 1% of the population in Germany are surveyed annually with regard to their working and living conditions. This corresponds to about 810,000 people from approximately 370,000 private households and shared accommodations (Destatis 2024).

Calculation

  • Observed relative values: Quotient of the number of people below the poverty risk threshold and the total population. More information on the poverty risk threshold are described elsewhere (Destatis, WZB and BiB 2021).
  • Stratification: The education level was determined on the basis of the ISCED classification (Eurostat 2023), which includes information relating to school education and professional training of the main income earner of the household, and which allows a classification into low, medium, and high education group.
  • Weighting: These are extrapolations based on the data from the microcensus. Prior to 2011, the extrapolation is based on the updated results from the census 1987 (former federal territory) as well as from the central population registry of former East Germany as of October 3, 1990 (new federal states and Berlin (East)). Since 2011, the extrapolation is based on the updated results from the census of 2011. The comparability with the previous years is limited since 2016 because the sample was updated in 2016 (Bihler and Zimmermann 2016). After implementation of the Microcensus Act of December 2016, the results of the microcensus 2020 are only to a limited extent comparable to previous year’s figures because surveys relating to income and to the living conditions as well as to the use of information and communication technologies, which had previously been conducted separately, are integrated into the microcensus since 2020 (Destatis 2024).

Note: When looking at the trend, the change of the sample and of the survey method of the microcensus in 2016 or 2020, respectively, has to be noted.

Data quality of the participating practices

The regional differences in the income level are not considered. Such a consideration of regional differences is possible when the average income (median) of the respective federal state (= state median) is used instead of the federal median of the income. This data is available here.

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