atriskofpoverty

The at risk of poverty rate (AROP) is a relative poverty measure used in many European contexts. It is the share of the population whose equivalised disposable income after social transfers falls below 60% of the national median equivalised income.

Calculation: Use equivalence scales to adjust for household size and composition; data from Eurostat or national statistics; threshold remains 60% of the median, computed annually.

Purpose and use: Used to monitor poverty and social inclusion across EU member states; supports EU targets like Europe 2020; commonly reported as a percentage. Note: AROP is a core component of the broader measure AROPE, which also includes risk of poverty and social exclusion.

Limitations: It is a relative indicator; does not measure depth of poverty; sensitive to changes in median income and prices; requires consistent equivalence scales and income concepts across countries; may obscure regional disparities.

Data availability: Eurostat and national statistical offices provide annual AROP rates by age, gender, and region.