The middle class has a new definition. Check if you get to her [KWOTY]
The middle class, which we have already emphasized in Business Insider, is one of the least defined terms in the economy. The boundaries are very smooth here, which means that in principle everyone considers themselves a representative of this group.
Until now, when calculated to belong to the middle class, we were based on the OECD definition. However, German scientists entered the game. They have prepared a new definition that is to better reflect the point of the case. So we took gloves and calculated according to their methodology, how much you need to earn to catch the middle class in Poland.
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Differences in the methodology
Definition of the OECD that the representative of this group must earn from 75 to 200 percent. Median salary.
There is no problem in the case of one -man households or couples without children. Here the matter is simple – two adults earn, so qualifying them to the right social layer is relatively easy. Just consider their earnings.
The stairs started in the case of families. Well, because children do not earn, but – to put it brutally – they generate costs. In this case, the so -called Median net income net in terms of a household member.
In a huge brief – scientists have determined that this situation is best described by an equation in which the total household income is divided by an element of the number of family members. Sounds complicated? Yes.
Scientists from the Institute of German Economy in Cologne have created a special calculator that The OECD definition simplifies, but also expands.
Below we explain how we count what it means for Poles' earnings. Simply put, how much you have to earn to belong to the middle class in individual Polish municipalities.
If all of Poland were treated equally, in the case of a single it could be enough for up to 4,000. PLN on hand, but in many places it will be too little.
Economists from Cologne based their calculator on data for the German economy. We will focus on what is happening on our side of the Oder. Data published by the Central Statistical Office, which show the distribution of remuneration broken down into individual municipalities, comes to the rescue.
However, before we get to the point, we must explain the methodology. The Germans adopted the following assumptions. First of all, their opinion to the middle class qualify earnings between 80 and 150 percent. median. This is a much narrower group than in the case of the OECD definition (there it was between 75 and 200 percent).
Secondly, according to the Germans, it can not be assumed that in the case of a pair living jointly, income must be automatically doubled. Here the so -called The concept of weighing needs.
“It takes into account the fact that Life becomes more profitable when several people live together and that children need less money than adults” – we read in the publication of the Institute of German Economy, which appeared at the end of March. At the same time, a child aged 16-17, and a 4-year-old child is different.
Painting: a larger number of people at home allows some logical savings. A double farm does not use twice as much heat, and you do not need to cook two pots for soup for dinner. This is probably quite an obvious assumption.
That is why economists from Cologne to each subsequent family member attribute specific weights.
“The first adult has a factor of 1, each additional household member over 14 years of age receives a 0.5 factor, and children under 14 years of age – a factor 0.3” – we read in the study. This is the key to our calculations.
The couple without children must earn 1.5 times as much as a single to be at a level like him. In the case of marriage with a preschooler, this will be a total 1.8 (1 plus 0.5 plus 0.3) factor, and in the case of a family with two small children and a 16-year-old-2.6 (1 plus 0.5 plus 0.3 plus 0.3 and plus 0.5).
This is what the middle class looks like in Poland
Of course, we are aware that Income is not the only middle class determinant. It is worth remembering that sometimes capital can be the key. You can earn little, but have several properties. In such cases, the above definition is imperfect.
We have also adopted a specific model in our calculations. We estimated compartments for a single, marriage without children and families with one, two, three and four children. For simplification, in each of the models listed we took children up to 14 years old (i.e. we gave them weight 0.3).
On the map below we present income ranges that entitle to a middle class in every commune in Poland. Importantly, this is about the total household income “on hand”. We include all its sources here: remuneration for work, revenues from rent, pensions, 800 plus and other benefits, as well as any money that regularly flows into the household budget.
How to read the map? Just hover in the local government we are interested in. After clicking (on a smartphone) or hovering with a mouse (computer), the table with the data will develop. From it we will find out what the income range looks like, which predestines to the middle class in this particular commune. Separate for the single, couple and families with one, two, three or four children. You can also choose your municipality from the list in the upper left corner of the graphics.
What results from the data we estimated? The single in Warsaw should earn between 5.2 and 9.8 thousand. PLN to be able to be called a middle class representative. A family with two young children should already have an income between 11 and 20.5 thousand. PLN per month to be able to aspire to this name.
Data from German scientists show that, as a rule, just more than half of the population in a given area belongs to such a group. This is confirmed by EU data. Eurostat estimated the Polish middle class for up to 68 percent. population.
See also: Polish middle class one of the largest in Europe. Check if you belong to it
Let's return to our estimates. On the map you can perfectly see the richest regions of the country. It is in them that they are relatively the most difficult for the title of “average”. In addition to Warsaw and the municipalities surrounding it, there are two more “wealth centers”.
The first is Lower Silesia, and more specifically Copper Basin. In the Jerzmanowa commune, the median salary is even higher than in Warsaw. Lubin or Głogów are also at the forefront. There are also nearby Wrocław and neighboring municipalities, such as Kobierzyce, Siechnice and Czernica.
In the south of the country, in turn, you earn the best in Krakow and its surroundings. Here, too, you can see a dark color on the map, which corresponds to the relatively highest earnings on hand.
Author: Jakub Ceglarz, Business Insider Polska journalist
Graphic cooperation: Michał Rogalski, Danan journalist Onet
