New data from the Organisation for Economic Co-operation and Development (OECD) highlights wide variations in child poverty rates across its member countries and accession states. The latest available figures for 2023 show that nearly one-third of children in some nations live below the relative poverty line, while others maintain rates below 5%.
Highest Child Poverty Rates Revealed
According to the OECD data, compiled by Visual Capitalist, Costa Rica recorded the highest child poverty rate at 29.6%. This means almost three out of every ten children in Costa Rica live in households with incomes less than half the national median.
Following closely, Israel registered the second-highest rate at 23.2%. Spain's child poverty rate stood at 21.5%, while the United States ranked fourth with 21.1%. These figures underscore that even economically developed nations can face significant challenges in ensuring economic well-being for their youngest populations.
- Costa Rica: 29.6%
- Israel: 23.2%
- Spain: 21.5%
- United States: 21.1%
- Bulgaria: 19.1%
- Romania: 17.7%
- United Kingdom: 15.8%
Factors Contributing to High Rates
In Costa Rica, high living costs combined with a substantial informal labor market are cited as key factors making households with children particularly vulnerable to poverty.
Israel's high rate is largely concentrated within specific demographic groups. The OECD notes that nearly half of children in Ultra-Orthodox (Haredi) Jewish and Israeli Arab communities experience poverty, significantly impacting the national average.
For the United States, the 21.1% rate indicates that one in five American children lives in a household with an income below half the national median. This statistic highlights that a country's overall wealth does not always translate into equitable well-being for all its citizens, with significant disparities often existing within national borders.
Nations with the Lowest Child Poverty
At the other end of the spectrum, several countries have managed to keep their child poverty rates remarkably low. Finland reported the lowest rate at just 4.6%, more than six times lower than Costa Rica's.
Other top performers include Slovenia (6.2%), Ireland (6.8%), and Norway (6.9%). These nations often employ robust social safety nets and family support policies that contribute to better outcomes for children.
- Finland: 4.6%
- Slovenia: 6.2%
- Ireland: 6.8%
- Norway: 6.9%
Understanding Relative Poverty
The OECD's definition of child poverty is based on a relative poverty line, set at 50% of the median household income of the total population within each respective country. This means the data reflects how children fare compared to the income levels prevalent in their own nation, rather than comparing absolute income levels across different countries. The dataset covers children aged 0-17 and includes OECD member countries along with Bulgaria, Croatia, and Romania, which are currently in the accession process.