Understanding the Mismatch between Income Poverty and Material Deprivation

Brian Nolan and Christopher T. Whelan

in Poverty and Deprivation in Europe

Published in print October 2011 | ISBN: 9780199588435
Published online January 2012 | e-ISBN: 9780191731327 | DOI:
Understanding the Mismatch between Income Poverty and Material Deprivation

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This chapter examines the mismatch between poverty measured indirectly using income and direct measures focusing on indicators of material deprivation, using both comparative and longitudinal perspectives to bring out the various contributing factors and their implications. It begins with a discussion of the reasons why one might expect a household's current equivalized income to have difficulties in fully capturing its command over financial resources in relation to its needs, and thus anticipate a priori that relying simply on income to measure poverty could be problematic. It then investigates the extent of overlap or mismatch between being below a relative income poverty threshold and above a corresponding consumption-related deprivation threshold, for twenty-six European countries. It looks at the cross-classification of persons by these income poverty and deprivation standards, distinguishing those who are both income poor and deprived, income poor but not deprived, deprived but not income poor, and neither income poor or deprived. Finally, the chapter turns from a static cross-sectional perspective to an analysis of the persistence of income poverty and deprivation over time, using the longitudinal data from the European Community Household Panel.

Keywords: poverty measures; deprivation indicators; household income; European countries; poor; European Community Household Panel

Chapter.  9440 words. 

Subjects: Public Economics

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