The EU Countries' Assessment with Respect to the Prevalence of Severe Material Deprivation and Determinants of Poverty: Application of Non-parametric DEA Approach

Reduction of poverty or social exclusion belongs to the priorities of the EU countries defined in the Europe 2020 Strategy. This priority was defined as being interrelated with the priorities focused on employment and education. Numbers of people living in poverty varied between the EU countries, which also varied in the progress towards achieving their national targets concerning poverty reduction. The aim of the paper was to assess the EU countries with respect to the prevalence of poverty and its determinants in the context of the priorities of the Europe 2020 Strategy. Two methods were used to meet the aim of the paper - the correlation analysis and the Data Envelopment Analysis (DEA), including also the Malmquist Index. Results of the DEA revealed that all EU countries were not assessed as being fully efficient. A number of efficient countries first declined between the years 2008-2010, then it started to increase and reached the maximum value in 2017. Between the years 2010-2014, 11 countries improved their productivity, but between the years 2017-2019, improvement was identified only for five countries. Results of correlation analysis confirmed the importance of policies focused on households' incomes and employment for the successful reduction of poverty.