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  • Poverty
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    • Table: summary (%)
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What does this mean?

In Kids Stats child poverty refers to children and young people who live in low income households in which the financial capacity of a family to purchase goods and services is limited.

Why is it important?

The ability of a family to purchase goods and services is key to their standard of living.

Children living in low-income families face several challenges to successful development. Most research has found that low family income is highly correlated with poor child health and well-being [1]. Children living in poor families have been found to have higher injury rates, are likely to be hospitalised more frequently, are more likely to become obese and have worse dental health than other children [2].

Other challenges stem from the limitation inherent in children’s out-of-home environments. For example, less advantaged neighbourhoods provide fewer enriching opportunities such as parks, libraries and children’s programs [3].

The negative outcomes associated with low levels of family income can persist over the course of a child’s life [4].

Indicator

The indicator used in Kids Stats to monitor child poverty is:

The number and proportion of children and young people aged 0 to 15 years living in income units with less than 50 per cent of the median equivalent income.

In this indicator, income units refer to families living in households in which income is assumed to be shared between parents and dependent children [5]. For readability, the term ‘household’ will be used to refer to income unit.

Main findings

• In 2001/2002, 10.7% of children and young people aged 0 to 15 years in NSW were in poverty
• The proportion of children and young people in poverty living in one parent families was more than twice as high as those living in couple families (in 2001/2002: 17.8% and 8.8% respectively)

Notes:
[1] Jolly, D. (1990). The impact of adversity on child health: poverty and disadvantage. The Australian College of Paediatrics, Melbourne.
[2] Al-Yaman, F., Bryant, M. & Sargeant, H. (2003). Australia’s children: their health and wellbeing 2002. AIHW Cat No. PHE 36. AIHW, Canberra.
[3] Morris, P. and Kalil, A. (2004). Out-of-school time use during middle childhood in a low-income sample: do combinations of activities affect achievement and behaviour? The Self-Sufficiency Project. Social Research and Demonstration Working Paper Series 04-06.
[4] Keating, D. P. and Hertzman, C. (eds) (1999). Developmental Health and the Wealth of Nations: Social, Biological, and Educational Dynamics. Guilford Press, New York.
[5] Australian Bureau of Stastics (2003). Survey of Income and Housing Costs Australia - Confidential Unit Record File Technical Paper, Cat No. 2039.0.55.001. ABS, Canberra.
[6] Abello, A. and Harding, A. (2004). The dynamics of child poverty in Australia. National Centre for Social and Economic modelling, Discussion Paper no. 60. NATSEM, Canberra.
[7] Greenwell, H., Lloywd, R, and Harding, A. (2001). An introduction to Poverty Measurement Issues. National Centre for Social and Economic Modelling. Discussion Paper no. 55. NATSEM, Canberra.

For further information on median equivalent income and poverty measurement, please refer to references [6,7] or follow the link to http://www.kids.nsw.gov.au/files/NATSEMfinalreport2.pdf.

For details of the references and to find out more about the data follow the link to Glossary and further information.