The Living Conditions Survey (LCS) is an operation whose basic aim is to provide information on statistics comparing income distribution and social exclusion throughout Europe.

It disseminates data on income, living conditions and the social situation of households residing in Spain. It also analyses aspects related to the well-being of the population, the risk of poverty, social exclusion and economic and social inequalities.

The LCS analyses the living conditions of the population and studies phenomena related to poverty, inequality and social exclusion.

Its main objectives include:

• Measuring the income levels of households and individuals.
• Analysing income distribution and inequality in the distribution of said income.
• Studying the material and social conditions of the population.
• Drawing up indicators of the risk of poverty and social exclusion.
• Facilitating the design and evaluation of social policies.

The LCS provides information on several issues related to the living conditions of households and individuals residing in Spain.

The information it provides includes the following:

• The average annual net income of households and individuals.
• Risk of poverty thresholds.
• The economic difficulties and material deprivations of households and individuals.
• Conditions and problems related to the home and surrounding area.
• Indicators of the risk of poverty and social exclusion.

The survey also analyses the social and economic differences between different population groups.

Yes. In addition to the information which is compiled each year, the survey incorporates specific rotating modules on different social aspects of interest.

Some are repeated every three years, including those related to childhood, health, work and housing conditions. Others are repeated every six years, including those related to quality of life, intergenerational transmission of poverty, access to services, excess debt, consumption and wealth.

Ad hoc modules to address new information needs may also be included.

The LCS is designed to provide representative results related to the country and, in the case of the main indicators, each autonomous community. Generally speaking, the autonomous community is the highest envisaged level of territorial disaggregation. The survey is not designed to obtain representative results related to provinces or municipalities.

The HIDA (Household Income Distribution Atlas) can be viewed to obtain more detailed territorial income analysis. This provides information on smaller territorial areas such as municipalities, districts and sections of the census, although it draws from a different source based entirely on tax records.

The information is obtained each year by means of interviews conducted with a sample of selected households. The survey combines this information provided directly by the households with administrative data, particularly those related to income.

The information is compiled using different interview methods, following procedures designed to ensure the quality, comparability and consistency of the results.

All the information that is collected is protected by statistical confidentiality and used for exclusively statistical purposes. The INE applies measures designed to guarantee the protection of the personal data and the confidentiality of the information provided by the participating households.

The results are disseminated solely in aggregate form to prevent the individual identification of any individuals or households.

The LCS involves households selected by means of statistical sampling techniques that are representative of the population residing in Spain.

The participants provide information on different aspects of their living conditions, economic situation and social characteristics.

The collaboration of the households is vital for obtaining reliable information on the risk of poverty, inequality and living conditions.

The LCS enables us to draw up numerous indicators related to the living conditions and well-being of the general population and different groups.

The key indicators include:

• Rate of risk of poverty.
• AROPE rate (risk of poverty or social exclusion).
• Households and individuals suffering from material and social deprivation.
• Households and individuals, in accordance with the degree of difficulty they have in making ends meet.
• Housing tenancy regime.
• Inequality in income distribution: S80/S20 indicator and Gini coefficient.

The AROPE (At Risk Of Poverty or Social Exclusion) indicator is a harmonised European indicator that measures the population at risk of poverty or social exclusion.

Individuals are considered to be in a situation defined as AROPE when they face at least one of the following:

• Risk of poverty: When the household they reside in receives income below 60% of the median of the population. This is an indicator of relative poverty, given that it measures the economic situation of individuals in relation to the population as a whole.
• Severe material and social deprivation: When there is deprivation with regard to at least seven concepts out of a list of thirteen.
• Low work intensity in the household: When the working-age members of households realised less than 20% of their total work potential during the year prior to the interview.

This indicator constitutes one of the main references for monitoring social cohesion and social inclusion policies in Spain and the European Union.

Not necessarily. The risk of poverty rate used in the LCS is a relative indicator that measures the economic situation of individuals in relation to the population as a whole.

Individuals are considered to be at risk of poverty when the income level of the household they reside in, adjusted in terms of its size and composition, is lower than 60% of the median income of the population.

This indicator is therefore designed to identify individuals in a significantly more unfavourable economic position than that of the majority of the population, not to determine who suffers from material deprivation or social exclusion per se. This does not mean that individuals at risk of poverty may not be experiencing real economic difficulties, but rather it specifically reflects a situation of relative economic disadvantage with respect to the rest of society.

The aim of this indicator is to analyse economic inequalities and situations of social vulnerability throughout the country and Europe in a comparable manner.

The material and social deprivation variables enable us to measure economic difficulties when it comes to gaining access to certain goods, services and activities that are regarded as normal in society.

These indicators are constructed upon the basis of questions related to aspects such as:

• Ability to afford unforeseen expenses.
• Possibility of keeping the home at a suitable temperature.
• Delays in payments related to housing or provisions.
• Ability to enjoy certain basic goods and activities.

The methodology used abides by harmonised criteria established by Eurostat to ensure the international comparability of the results.

To determine any severe material or social deprivation, individuals must suffer from deprivation in at least seven of these thirteen concepts.

Seven concepts are defined in terms of the household:

• They cannot afford to go on holiday for at least one week a year.
• They cannot afford a meal of meat, chicken or fish at least every two days.
• They cannot afford to keep the house at a suitable temperature.
• They cannot afford any unforeseen expenses.
• They have experienced delays in payments related to their main residence (mortgage or rent, gas bills, community costs, etc.) or in instalment purchases in the past 12 months.
• They cannot afford a car.
• They cannot replace damaged or old furniture.

And six concepts are defined in terms of the individuals in question:

• They cannot afford to replace damaged clothes with new ones.
• They cannot afford to have two pairs of shoes in good condition.
• They cannot afford to get together with friends/family for a meal or drink at least once a month.
• They cannot afford to regularly participate in leisure activities.
• They cannot afford to spend a small amount of money on themselves.
• They cannot afford an internet connection.

Both indicators analyse inequality in the distribution of income among the population. They enable us to study the evolution of these economic inequalities and make national and international comparisons.

The Gini coefficient measures the degree of inequality in income distribution. Its values range between 0 and 100, with 0 representing total equality and 100 maximum inequality.

The S80/S20 indicator compares the income of the 20% of the population with the highest income with that of the 20% with the lowest income.

The income data of the LCS may differ from those of other statistical sources because each operation has its own goals, scopes and methodologies. In the LCS, household income is obtained by combining the information declared by the households with administrative data, especially those on tax and social security.

The Household Income Distribution Atlas is based entirely on administrative records and provides greater territorial detail. There may also be differences with the National Accounting, which uses a macroeconomic approach and its own accounting definitions, and the AEAT¿s Statistics on Personal Income Tax (IRPF) Declarants, which focuses on the information contained in tax returns. Therefore, although the concepts of income may be similar, the results are not necessarily identical and they should be compared with caution.

The LCS usually publishes the results in the first few months of the year following that of the survey. The survey¿s annual results are published first, followed by the results of the specific modules a few weeks later. However, the specific dates may vary each year, so it is advisable to view the INE¿s Statistics Availability Calendar, on which the dates envisaged for the dissemination of each statistical operation are published.

The LCS forms part of the European EU-SILC (European Union Statistics on Income and Living Conditions) project coordinated by Eurostat.

This system provides harmonised and comparable information on income and living conditions in the countries of the European Union. International comparability is guaranteed by means of the application of harmonised methodologies and definitions established within the framework of the European EU-SILC project.

All the participating countries apply common criteria with regard to aspects such as:

• Definition of variables and indicators.
• Methodological design.
• Statistical processing of the information.
• Dissemination of the results.

The results of the LCS have multiple applications in social and economic analysis.

Some of their main uses include:

• Monitoring of the risk of poverty and social exclusion.
• Design and evaluation of social policies.
• Studies on inequality and income distribution.
• Academic research and social analysis.
• Drawing up of national and European indicators.

The LCS is closely linked to other statistical operations prepared by the INE that are related to the living conditions and socio-economic situation of the population.

The main related operations include:

• Quality of Life Indicators
• Family Budget Survey (FBS).
• Active Population Survey (APS).
• Continuous Population Statistics (CPS).
• Annual Population Census.
• Statistics on the income and economic conditions of households.

These operations jointly provide a more comprehensive overview of the social and economic reality of the population residing in Spain.