Poverty, the worst form of violence: perceived income adequacy among Croatian citizens

The article analyses to what extent individual’s socio-demographic and economic characteristics relate to citizens’ perceived difficulty of living on present income. The analysis is carried out by using ordered logit and partial proportional odds (P.P.O.) model on European Social Survey (E.S.S.) data. Results confirm that individual’s income can be used as an indicator of financial capacity both in general and for retirees as a focus group. Respondents in financial difficulty had to draw in a higher extent on their savings or incur debt to cover living expenses. Respondents with less than a secondary education, in poor health and those dissatisfied with the current state of the economy, were more likely to perceive their income as inadequate. Findings confirm that older respondents are generally more satisfied with their income compared to middle-aged and younger adults. Respondents living with a child/children were more likely to report financial difficulty. On the other hand, result suggest that gender, region and living area had no significant effect on income adequacy perception. We see similar results when focusing on retired respondents. Individual determinants are significant predictors of citizens’ perceived financial difficulty and should be taken into account when devising economic policy measures and legal framework for personal insolvency procedures.