Determinants of the poverty level on the example of Poland and Hungary – comparative analysis

Abstract

The aim of this article is to analyse determinants of the poverty level in two countries from The Visegrad Group: Poland and Hungary. This analysis was conducted based on statistical data EU-SILC and it is covering the period 2006–2014. Income inequalities and a growing poverty are a challenge before which the contemporary economy should cope. The poverty afflicts individual social groups in the different degree. The level of poverty in both analysed countries is comparable in case of the following situations: low level of the family members education, the disabled person in the family or also a great size of the family. All mentioned factors always rise up the level of poverty in both countries. For the purposes of this study assumed that the level of poverty is dependent from four following factors: region of settling, age, degree of the urbanization (classes of the town) and the status of the person on the labour market. Analysis is showing that in case of these factors the situation of Poland and Hungary is a little bit different. In Hungary the poverty in particular affects children, i.e. the person less than 16 years old and (apart from not employed persons) group of employees. In case of Poland group of people living below the poverty level in the larger extent than in Hungary are employed persons except employees. In terms of the age the poorest people are young, going the labour market, representing the group from 16 to 24 years. This is also related with the previous category.