Spatial Variation in EU Poverty with Respect to Health, Education and Living Standards

We examine the European Union (EU) countries and within-country areas (i.e., large urban areas, small urban areas, and rural areas) that are the most disadvantageous with respect to multidimensional poverty and in each of the investigated dimensions, i.e., health, education, and living standards. To this end, we construct the Multidimensional Poverty Index and its sub-indices: the Poverty in Health Index, Poverty in Education Index, and Poverty in Standard of Living Index. All of these indices provide information regarding the fraction of people who live in poverty, as well as information on the poverty intensity experienced by the poor. Our results indicate that the scale of poverty in the EU countries is diversified, with Denmark and Sweden being the most affluent countries, and Latvia, Bulgaria, and Romania being the most disadvantageous. We demonstrate that there are countries with no differences in the levels of poverty within a country, such as Denmark, Sweden, Spain, Finland, and the Czech Republic, and countries, usually less affluent ones such as Romania, Bulgaria and Lithuania, where considerable geographical inequality is present. In general, in countries with a high and moderately high number of poor, the worst situation with respect to the scale of poverty is observed in rural areas, and the best situation is observed in large urban areas, with the exception of Greece, Italy, and Portugal, where in large urban areas, the situation is the worst. In countries with a low number of poor, in general, the poverty is relatively higher in large urban areas.