The impact of the economic crisis on poverty and welfare in Athens

This paper sets out to estimate the impact of the recent economic crisis and austerity measures on income and welfare conditions across municipalities in the Athens metropolitan area. Using data from a unique dataset, which incorporates economic, social and demographic variables for the Athenian municipalities, we illustrate the evolution of three main socio-economic indicators within Athens: mean equivalised income; at-risk-of-poverty rates; and material deprivation. The dataset covers a 12-year period, starting from 2004 and moving on to 2015, including the transition of a prospering economy to a vicious cycle of economic recession. Analysis of the results indicates that the economic crisis has had a tremendous impact on welfare conditions across the metropolitan area of Athens. At-risk-of-poverty rates have increased, and welfare conditions have deteriorated substantially. Moreover, the least well-off areas have shown an increased vulnerability to crisis, thus leading to enlarged income and welfare inequality, as well as social polarization across space. However, the ranking of municipalities throughout this whole study-period remains relatively stable, strengthening the hypothesis that social phenomena show high persistence over time.