köyhyyskynnykset

Köyhyyskynnykset are poverty thresholds used to define and measure poverty in Finland. They are set by Statistics Finland and are based on the relative income of the population. Specifically, the poverty threshold is set at 60% of the median disposable income of households. This means that individuals or households earning less than this amount are considered to be living in poverty.

There are different types of poverty thresholds to account for various household compositions. The most commonly used is the individual poverty threshold, but there are also thresholds adjusted for the number of adults and children in a household. These adjustments, known as equivalised income measures, aim to reflect the fact that larger households have different needs and economies of scale compared to smaller ones.

The poverty threshold is a crucial tool for monitoring poverty trends and for informing social policy decisions. It allows for the tracking of the number of people below the poverty line over time and helps to assess the effectiveness of anti-poverty measures. While the 60% median income benchmark is widely used internationally, Finland also monitors other poverty indicators, such as the absolute poverty threshold, which is based on a fixed basket of essential goods and services. The concept of köyhyyskynnykset is thus central to understanding and addressing poverty within the Finnish social welfare system.