Factors of the Correlation Between Poverty and Having Finished Secondary Education

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Summary

This report analyses social and economic factors such as, risk of poverty, employment rate and population completed at least upper secondary education. In this report you can find summary of the data, descriptive statistics, correlation and regression analysis, which shows that poverty has a small negative relationship with employment rate and negative relationship with education. Thus, this means if countries would increase employment rate and increase number of people who finish secondary education they would be able to reduce poverty level in the countries.

Introduction

One of the contemporary challenges facing policy makers is the incidence and spatial concentration of poverty. The multiple dimensions of poverty includes: levels of employment, education, incidence of poor health, poverty levels, and macroeconomic conditions. In this report we will examine two of them: employment rate and education to find out if countries can reduce poverty level by increasing employment rate and increasing number of people who finish at least upper secondary education. Moreover, we will find out what is more important to increase employment rate or increase number of people who finish secondary education to decrease poverty level in the countries. To find out all these things we will summarise the information, using descriptive statistics, test relationship between the variables using correlation and regression which will answer our questions.

Sources

All the data for this report was taken from the leading provider of high quality statistics on Europe - Eurostat. Eurostat is the statistical office of the European Union situated in Luxembourg. Its task is to provide the European Union with statistics at European level that enable comparisons between countries and regions (Eurostat).

People at risk of poverty or social exclusion- measure people those living in conditions severely constrained by a lack of resources or a person whose household income per consumption unit is less than 60 per cent of the median income is considered living at of poverty (Stat 2013). However, there are couple problems with this measure. First, these measures do not identify some groups, for instance, people living in institutions, homeless people or migrants. Second, it is difficult to compare between countries on the basis of deprivation indicators, for instance, having a warm coat can be necessary in one country there is cold but not necessary where is warm weather (Eapn). Data is for 2011.

Employment rate is the number of individuals aged 20 to 64 who are employed as a proportion of the population. However, there are couple problems with this measure.

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