Database analysis reveals that household savings capacity fosters sustainable disposable income in European households, highlighting the critical need for well-targeted social transfers.
The identification of the structure of sustainable household disposable income in times of economic uncertainty is the aim of this paper. The research provides household income components in order to achieve a sustainable income ensuring life out of poverty. The analyses were based on the EU-SILC 2020 database of primary data (N = 232,816 EU households). The binary logistic regression verified that households capable of generating savings have the highest chances of achieving a sustainable income. There is also a positive influence of the investment income (interests, dividends, rental income), but with a lower impact than expected. On the contrary, the presence of social transfers in income reduces the likelihood of sustainable income. Social income is beneficial to households in poverty but it is essential to ensure that it is properly targeted.
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Baláková et al. (2024) studied this question.
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