INTERTEMPORAL DATA ON INCOME STRUCTURE OF HOUSEHOLDS

The Small Enterprises Institute (IME-GSEVEE) as of 2012 conducts income surveys on an annual basis on a representative sample of 1000 households, attempting to explore the impact on the income and consumption of households following the submission of the country to the first two fiscal adjustment programs. One of the major findings identified in these surveys is the trend that began to take shape in 2012 and which is established today at rates of over 50% in regard to the dominant role played by pensions as a means of strengthening the family budget.

 

The main conclusion to be drawn from the intertemporal survey of household income structure is that pensions are the main source of income for 52% of the households, a trend that goes upward from 2012 to 2014, while there is a reduction of the equivalent proportion (10.1%) from income from business activities (profits). In other words, although pensions were drastically reduced during the recent years, their significance as the main source of household income has comparatively been increased, given that due to the recession unemployment rises in parallel with wage cuts, and at the same time we observe reductions of profits from business.

 

As the third fiscal adjustment program includes significant reforms in the social security system, with provisions for possible direct and indirect reduction of the pension amount, it must be understood by the government and the institutional partners that any further reduction in the amounts of pensions will lead to a significant downturn of demand, real income and a worsening of inequality and poverty.

Moreover, from a number of studies on the Greek economy the conclusion that can be drawn is that pensions are the main factor mitigating poverty and inequality. In essence, pensions are substitutes for social protection policies, which take the form of quasi-allowances for unemployed household members. It is noteworthy that today only 10% of the unemployed receive unemployment benefits.

 

INCOME SURVEYS BY IME-GSEVEE (2012-2014): DATA CONCERNING THE MAIN INCOME SOURCE OF HOUSEHOLDS

 

INTERTEMPORAL DATA ON INCOME STRUCTURE

INCOME STRUCTURE 2012 2013 2014
WAGES 37,6 35,9 32,1
PENSIONS 42,3 48,6 52
BUSINESS PROFITS 12,6 10,3 10,1
HELP FROM RELATIVES 2,4 1,7 2,7
RENTS 1,5 1,3 1,4
BENEFIT 2,3 1,3 1,3
SAVINGS 0,6 0,7
OTHER 0,7 0,4 0,5