Poor families and single parents are often worse off than previously thought. This is result of a study by Bertelsmann Foundation, which differs from usual OECD procedure in methodology. In particular, income situation of single-handed is worse than thought.

According to study, risk of poverty of families with each additional child increases. 2015 was around every eighth pair (13 percent) with a child at risk of poverty, it is said in survey. For two children it was every sixth pair (16 percent), with three children almost every fifth (18 percent).

The poor are households whose income is less than 60 percent of median income of all households. The study is based on figures from Federal Statistical Office and Socio-economic panel (SOEP).

Criticism of OECD methodology

The risk of poverty of families is thus much higher than previously assumed, writes researchers of Ruhr-Universität Bochum, who have created study. They criticize OECD methodology, which is widely used in poverty research, and are relying on a new type of calculation.

The Bertelsmann Foundation's study, for example, assumes that 68 percent of single-income 2015 were at risk of poverty. According to OECD methodology, it is significantly less with 46 percent. Moreover, from 1991 to 2015, income gap between wealthy and poor families has developed much more than previously assumed.

The reason for different results: The OECD does not make a difference between poor and wealthy families when considering additional costs for children. The Ruhr-Universität argues, however: for a poorer family, a child is financially more burdened than a wealthy family. For example, a wealthy couple would probably not have to move when y get a child – because y already live in a large apartment anyway. The Ruhr University calculated se differences in its study.

Date Of Update: 08 February 2018, 12:03