Estonian Human Development Report

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Table 3.2.1. Characteristics of living conditions in Estonia, 2007 (%) Type of dwelling Northern Estonia Incl. Tallinn Central Estonia North-Eastern Estonia Western Estonia Southern Estonia Farmhouse … … 16.4 … 16.5 18.9 9.4 Single family dwelling or terraced house Apartment building or other dwelling Estonia (total) 11.9 6.3 33.5 9.6 35.4 25.3 19.6 85.7 93.6 50.1 88.3 48.1 55.8 71.0 Number of rooms per family member Problems related to the dwelling Condition of the dwelling Less than one room 23.2 22.9 21.4 24.9 21.1 20.9 22.4 One room 38.9 40.9 28.4 34.9 23.7 26.2 32.5 More than one room 37.9 36.2 50.2 40.2 55.3 52.9 45.1 Leaking roof 5.5 10.1 4.0 6.8 8.9 6.8 Humidity 8.4 18.8 10.2 14.2 13.4 11.7 Crime 29.8 11.7 40.4 11.0 8.1 21.4 Noise 73.1 59.8 72.2 51.3 59.4 65.5 Pollution 62.5 51.5 73.0 36.4 47.4 55.7 Good or very good 61.9 63.3 47.5 35.6 59.6 46.5 52.9 Satisfactory 34.8 34.8 46.5 57.9 37.2 46.0 42.1 Poor 3.3 … 6.0 … … 7.5 5.0 Internet connection at home 65.6 67.9 59.8 44.7 58.0 52.7 58.1 Source: Statistics Estonia 2008. ing in Central, Western and Southern Estonia live in single-family houses (Table 3.2.1.) where the number of rooms per household member is the largest. Living conditions are the most cramped in North-Eastern Estonia. People living in Northern Estonia and primarily Tallinn are the most satisfied with their living conditions. In these regions 63% of respondents evaluate their living conditions as good or very good. Also, compared to the other regions, many more households in Tallinn have internet connections at home. In North-Eastern Estonia 58% of the people characterize their living conditions as satisfactory and studies show that this region has the smallest number of households with a home internet connection. Regions are clearly differentiated by the problems related to living conditions: in Northern Estonia, the greatest problem is noise, while in North- Eastern Estonia pollution and noise as well as people’s fear of crime are seen as the most pressing problems. However, if we look at a longer period of time, it becomes evident that living conditions have improved over time. The transition from a socialist system to a capitalist economic system affected most areas of life, including the households’ way of life and the form of ownership of the dwelling. In 1994, at the beginning of the ownership reform, 26% of households owned their dwellings, whereas in 2006, 95% of all households had become owners of their dwellings and the ownership status did not depend on the type of household or the material situation of the household. The increased percentage of households living in their own house is another factor indicating the improvement of living conditions. In 1994, 24% of all households and in 1999, 28% lived in their own house, but by 2007 this percentage has increased by another two percentage points. To a large degree, this increase reflects the building of new suburban residential districts. There has also been an increase in the number of rooms available per household member. While in 1994, 54% of households lived in two-room dwellings, by 2006 the average number of rooms per household member had grown and 37% of households lived in two-room dwellings. Although dwellings have become larger, this is not directly reflected in the improvement of living conditions. For example, the percentage of households who can use a shower or a bath in their dwelling has not changed in 12 years (71% in 1994, 73% in 2006). The generally improved condition of dwellings is expressed in people’s level of satisfaction. In 2008, nearly a quarter of the respondents were completely satisfied with their dwellings and half of the respondents reported that they were relatively satisfied. All in all, it can be said that the living conditions of the population of Estonia have improved over the last decade, mainly in connection with the exchanging of apartments for houses and the increase in the size of the dwellings, regardless of the type of household. Although living conditions have improved for all types of households, the differences between households have not disappeared or subsided. Meanwhile, the improved living conditions of households do not automatically mean that their quality of life has improved. In many cases, living conditions have been improved with the help of housing loans which can generate objective difficulties in other areas of life and also cause subjective pressures. According to the F- monitor survey conducted by AS Emor, 16% of <strong>Estonian</strong> households have taken loans using real estate as collateral. Taking into account the current economic situation, the problems that have emerged with regard to the repayment of housing loans may lead to the deterioration of living conditions in the near future. Material situation Comparisons of the incomes of various types of households reveal that childless couples enjoy a relatively better material situation – in 2006, the average equivalent income of these families was nearly one quarter higher | 56
than the average income. Elderly people living alone and single parents have the lowest incomes (about half of the average income and one and a half times lower than the average income, respectively) (Table 3.2.2.). Incomes have grown approximately 1.6 times within the last four years, and the incomes of all household types have grown more or less equally, although the incomes of older people have increased less than the average income. Instead of the average income, the quality of life related to the material resources of the households is better characterized by the income/poverty line ratio 12 . According to the data of Statistics Estonia, two-parent families with children have the smallest risk of relative poverty (11% for two-parent families with one or two children, 20% for two-parent families with three and more children), while single-member households and single-parent households have the largest risk (50% and 44%, respectively). There has been practically no change in the poverty risk of families with children in recent years, but the poverty risk of single-member households has increased from 30% in 2000 to 50% in 2006. An analysis of the difference in the poverty rates of men and women in 2002–2006 shows that men’s and women’s poverty rates are levelling off in the younger age groups, but among people aged 65 and over, the poverty rate of women is nearly twice as high as that of men. In the case of education, the poverty rate of people with basic education and lower education grew to 43% in 2006, while the poverty risk of individuals with secondary education or higher education remained the same (20% and 10%, respectively) (based on data from Statistics Estonia). Two indicators are used to assess the changes of the households’ economic situation: the relative income position of various types of households in comparison to the general income 13 and the relative importance of housing costs in the income in 1994 and 2006. In over ten years, the percentage of housing costs in incomes has decreased by nearly ten points, which indicates that income growth has exceeded the increase in housing costs (Table 3.2.3.). In the context of the overall reduction of residential expenses, the decrease in housing costs has been quickest among households without children (both single-person households and households comprising several individuals). The relative income position has improved the most in the case of single-member households, while at the same time the relative income position of two-parent families with children has deteriorated by 14 percentage points. Summarizing the results provided above, we can conclude that the general income growth has affected different types of households in different ways. A deepening age polarization can be seen in the case of single-member households – the incomes of young people living alone have increased significantly compared to earlier years, while pensions have increased at a slower rate than incomes in general, causing the relative poverty risk of elderly people to grow. A trend towards the equalization of incomes is evident in the case of two-parent families with children. Both the number of families at risk of poverty and the general income level compared to the average income have decreased. Table 3.2.2. Monthly equivalent income 11 of households, 2003–2006 (EEK) Type of household 2003 2004 2005 2006 Change 2003–2006 Total 4230 4733 5678 6913 1.63 Household without children 4126 4563 5647 6694 1.62 Single-person household 3125 3474 4469 5152 1.65 Single person under 65 3766 4103 5568 6441 1.71 Single person 65 and older 2404 2752 3121 3598 1.50 Couple without children, at least one of whom is under 65 Couple over 64, without children Other household without children 5101 5743 7140 8599 1.69 3235 3662 4204 5065 1.57 4593 4966 6127 7262 1.58 Household with children 4310 4861 5702 7097 1.65 Adult and child(ren) 2603 3197 3684 4422 1.70 Source: Statistics Estonia, 2008 Table 3.2.3. Changes in the relative household income levels* and the relative importance of housing costs in incomes during 1994–2006 Income Housing costs 1994 2006 Change 1994 2006 Change Single-person household 90 100 +10% 40 29 -11% Two-parent family with children Single-parent family with children Family of two adults without children Other families with children Other families without children 110 96 - 14% 21 17 -4% 74 71 -3% 38 29 -9% 106 108 +2% 23 17 -6% 92 94 +2% 19 12 -7% 127 126 -1% 22 12 -10% All households 28 19 -9% * the median income of the corresponding household as a percentage of the overall median income Source: <strong>Estonian</strong> living conditions survey (1994) and EU SILC (2006) Satisfaction with the material situation. In studies of quality of life, much attention has been devoted to the connection between one’s material situation and satisfaction with life. Satisfaction with one’s material situation is strongly dependent on the income level of the household (Table 3.2.4.). Households whose income per household member exceeds 5000 kroons consider themselves able to cope at their current income level (86%). However, in the case of households where the income is lower than 3000 kroons per household member, 38% consider coping to be difficult and 16% consider it very difficult. The following table (Table 3.2.5.) provides information regarding the satisfaction of respondents with their 11 Income per household, divided by the sum of weighted consumption units of household members (equivalence scales used: 1:0.5:0.3) 12 Percentage indicates the relative importance of people whose equivalent net income was below the relative poverty line (Statistics Estonia). 13 Proportion of the median income of the given household to the overall median income 57 |
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Estonian Human Development Report
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Estonian Human Development Report T
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4.2. Ethnic differentiations in sat
Page 9: Preface This year, the Estonian Hum
Page 12 and 13: CHAPTER 1 Estonian Human Developmen
Page 14 and 15: Figure 1.1.3. Life expectancy in co
Page 16 and 17: Figure 1.2.2. Life expectancy at bi
Page 18 and 19: to reality. The greatest inaccuracy
Page 20 and 21: Figure 1.2.9. Internal migration ev
Page 22 and 23: 12. Marksoo, A. 1992. “Dynamics o
Page 24 and 25: Table 1.3.1. PISA 2006 study result
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Page 32 and 33: 1.5. Changes in the Estonian Human
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Page 42 and 43: 2.5. Lifestyle and behaviour as a s
Page 44 and 45: Figure 2.5.5. Smoking in Estonia in
Page 46 and 47: Figure 2.6.1. Overview of the compo
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Page 56 and 57: CHAPTER 3 Quality of life and life
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Figure 5.2.3. Distribution of consu
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Figure 5.2.4. Indexes of environmen
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Table 5.3.1. Comparison of countrie
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Figure 5.3.3. Comparison of types o
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Table 5.3.5. Connections between po
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Table 5.4.1. Who and what are the f
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Table 5.4.3. Young people’s asses
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Figure 5.4.6. Time spent on the con
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Table 5.4.6. The perception of prob
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5.6. Summary To briefly summarize t
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Table 6.2.1. Objective and subjecti
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Figure 6.2.4. Relationship between
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Figure 6.2.7. Difference between th
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Figure 6.3.1. GDP, government secto
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Figure 6.3.3. Employed 15-74-year-o
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Figure 6.3.8. Percentage of social
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References 1. Aaviksoo, A., G. Paat
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Figure 6.4.1. Labour market flexibi
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Figure 6.4.3. Creations of jobs ind
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Figure 6.4.5. Public expenditures o
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Figure 6.4.6. Ratio of the particip
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6.5. Cities as development engines
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Table 6.5.2. Existence of developme
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have been underfinanced or are not
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Table 7.1. Factors that favour and
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Table 7.2. Potential economic devel
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Authors Chapter 1 Ene-Margit Tiit,
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Margit Keller (PhD) is a Senior Res
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Special prizes Estonian Human Devel
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Estonian Human Development Report H
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Estonian Human Development Report H
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Honorable mentions Estonian Human D
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Estonian Human Development Report P
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Estonian Human Development Report A
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Estonian Human Development Report

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