Multidimensional assessment of the financial position of polish households and its regional diversity

Abstract

The article aims to present a multidimensional assessment of Polish households' financial position and its regional diversity in 2018. In the first stage of the assessment, the financial position was compared between voivodships in a one-dimensional approach, taking into account the level of equivalent disposable income and total expenditure, the savings rate, the shares of food, and housing expenditures. In the second stage, a multidimensional assessment of the financial position was performed, based on the value of the synthetic indicator constructed with the TOPSIS method. Additionally, TOPSIS-based typological classes helped account for determinants of the financial position and subjective evaluation of households in each voivodship. The article drew on unpublished individual data from the Household Budget Survey conducted by the Central Statistical Office of Poland in 2018. Analyses from both stages showed that the households in Mazowieckie and Dolnośląskie voivodships enjoyed the best financial position, followed by Śląskie and Opolskie, while in Podkarpackie, Podlaskie, Warmińsko-Mazurskie, and Świętokrzyskie -- the worst. With regards to Zachodniopomorskie and Wielkopolskie voivodships, the financial position of their households was similar to the national average. The reasons for these disparities are social, economic, and demographic and include professional activity (being unemployed), the level of education of household head, location, and meeting debt obligations.

Keywords

• Regional variation
• Households
• Financial condition of households
• Voivodeships
• Multidimensional assessment
• Income and expenditure disparities