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Living Standards Measurements Study - Serbia 2002 - 2007

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Graph 10.4 How do you assess the current status<br />

of your household?<br />

hand, the share of agricultural households in the<br />

richest households was reduced by almost 6 percent<br />

(Graph 10.6.).<br />

Very bad<br />

Bad<br />

10.0%<br />

30.5%<br />

Graph 10.6. Share of agricultural households<br />

Average<br />

49.5%<br />

Total<br />

32.9%<br />

30.1%<br />

Good<br />

Very good<br />

0.7%<br />

9.0%<br />

Type of<br />

settlement<br />

Urban<br />

Other<br />

10.0%<br />

10.7%<br />

64.7%<br />

59.3%<br />

Graph 10.5. How do you see material position of<br />

your household in next five years?<br />

Deteriorated<br />

Same<br />

Improved<br />

I do not know<br />

17.6%<br />

16.8%<br />

33.4%<br />

32.2%<br />

10.3. <strong>Serbia</strong>n agricultural households<br />

and poverty<br />

According to LSMS <strong>2007</strong>, agricultural<br />

households account for 30.1 percent of the total<br />

number of <strong>Serbia</strong>n households, which is reduction<br />

by 2.8 percent compared to <strong>2002</strong>. This relatively<br />

small reduction in the number of agricultural<br />

households is caused by a natural withering away of<br />

households without heirs and indicates that the<br />

labour market and land market are not sufficiently<br />

active. In such circumstances, productivity growth<br />

by land consolidation and by reduction of hidden<br />

unemployment through diversification of activities<br />

and income of members of the agricultural<br />

households is significantly reduced.<br />

The share of agricultural households living<br />

below the poverty line (36.7 percent) was slightly<br />

reduced in <strong>2007</strong>, while the share of the most<br />

vulnerable households (37.33 percent) remained<br />

unchanged compared to the <strong>2002</strong> level. On the other<br />

Poverty line<br />

<strong>2007</strong><br />

Quintiles of consumption<br />

Below<br />

Above<br />

The<br />

poorest<br />

2<br />

3<br />

4<br />

The<br />

richest<br />

38.5%<br />

36.7%<br />

32.2%<br />

29.7%<br />

37.3%<br />

37.3%<br />

35.8%<br />

34.8%<br />

36.6%<br />

31.5%<br />

29.2%<br />

28.2%<br />

26.0%<br />

20.0%<br />

<strong>2002</strong> <strong>2007</strong><br />

The main causes of poverty of agricultural<br />

households may be classified into two groups of<br />

factors:<br />

1. unfavourable performances of the agrarian<br />

structure - unfavourable ownership structure,<br />

underdeveloped capital market and poor human<br />

resources are main causes of the agricultural<br />

households vulnerability;<br />

2. insufficient diversification of income and<br />

activities of members of agricultural households.<br />

10.3.1. Human resources of the<br />

agricultural households<br />

Human resources of agricultural households,<br />

by their performances, are significantly less<br />

140 <strong>Living</strong> <strong>Standards</strong> <strong>Measurements</strong> <strong>Study</strong> - <strong>Serbia</strong> <strong>2002</strong> - <strong>2007</strong>

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