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Understanding the Implications of Choice of Deprivation Index for Measuring Consistent Poverty in Ireland

Author

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  • Christopher T. Whelan

    (Economic and Social Research Institute (ESRI))

Abstract
In this paper we make use of the Irish component of the European Union Community Statistics on Income and Living Conditions (EU-SILC) survey for 2004 in order to develop a measure of consistent poverty that overcomes some of the difficulties associated with the original indicators employed as targets in the Irish National Anti-Poverty Strategy. Our analysis leads us to propose a set of economic strain items that covers a broader range than the original basic deprivation set and provides a more reliable and valid measure Consistent poverty measures incorporating the revised measure of economic strain and adopting a threshold of two or more items provide similar estimates of levels of poverty to the original measure. However, the new measure is more strongly associated with, respectively, current income, surrogates for permanent income and subjective economic pressures. Furthermore, by constructing a consistent poverty typology we are able to demonstrate that when we contrast those defined as poor when employing the new eleven-item index but not the eight-item one with those for whom the opposite is true the former display a multidimensional deprivation profile that is substantially less favourable. The accumulated evidence supports the view that the revised consistent poverty measures, which combine a threshold of two or more items on the eleven-item EU-SILC11 index with income poverty, identifies those exposed to generalised deprivation arising from lack of resources in a manner consistent with their use as targets in the National Anti-Poverty Strategy.

Suggested Citation

  • Christopher T. Whelan, 2007. "Understanding the Implications of Choice of Deprivation Index for Measuring Consistent Poverty in Ireland," Papers WP181, Economic and Social Research Institute (ESRI).
    • Handle: RePEc:esr:wpaper:wp181
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    References listed on IDEAS

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    1. Romina Boarini & Marco Mira d'Ercole, 2006. "Measures of Material Deprivation in OECD Countries," OECD Social, Employment and Migration Working Papers 37, OECD Publishing.
    2. Nolan, Brian & Whelan, Christopher T., 1996. "Resources, Deprivation, and Poverty," OUP Catalogue, Oxford University Press, number 9780198287858.
    3. Maitre, Bertrand & Nolan, Brian & Whelan, Christopher T., 2006. "Reconfiguring the Measurement of Deprivation and Consistent Poverty in Ireland," Research Series, Economic and Social Research Institute (ESRI), number PRS58.
    4. Susan E. Mayer & Christopher Jencks, 1989. "Poverty and the Distribution of Material Hardship," Journal of Human Resources, University of Wisconsin Press, vol. 24(1), pages 88-114.
    5. Whelan, Christopher T. & Maitre, Bertrand & Nolan, Brian, 2007. "Multiple Deprivation and Multiple Disadvantage in Ireland: An Analysis of EU-SILC," Research Series, Economic and Social Research Institute (ESRI), number PRS61.
    6. Christopher Whelan & Bertrand Maître, 2007. "Income, deprivation and economic stress in the enlarged European Union," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 83(2), pages 309-329, September.
    7. Christopher T. Whelan & Bertrand MaÎtre, 2006. "Levels and Patterns of Material Deprivation in Ireland: After the 'Celtic Tiger'," Papers WP171, Economic and Social Research Institute (ESRI).
    8. Christopher T. Whelan & Bertrand Maître, 2005. "Income, Deprivation and Economic Strain in the Enlarged European Union," Papers WP164, Economic and Social Research Institute (ESRI).
    9. Tim Callan & Brian Nolan & Christopher Whelan, 1991. "Resources, Deprivation and the Measurement of Poverty. Published in Journal of Social Policy, 1993, Vol 22 No 2," Papers WP021, Economic and Social Research Institute (ESRI).
    10. Jesus Perez-Mayo, 2005. "Identifying deprivation profiles in Spain: a new approach," Applied Economics, Taylor & Francis Journals, vol. 37(8), pages 943-955.
    11. Christopher T. Whelan & Bertrand MaÎtre, 2006. "Measuring Material Deprivation with EU-SILC: Lessons from the Irish Survey," Papers WP172, Economic and Social Research Institute (ESRI).
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    Cited by:

    1. Maître, Bertrand & Whelan, Christopher T., 2009. "Poverty and Deprivation in Ireland in Comparative Perspective," Research Series, Economic and Social Research Institute (ESRI), number RS11.
    2. Dorothy Watson & Bertrand Maître & Christopher T. Whelan & Helen Russell, 2017. "Poverty, economic stress and quality of life: lessons from the Irish case," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 64(2), pages 125-143, June.
    3. Helen Russell & Bertrand Maître & Christopher T. Whelan, 2011. "Economic Vulnerability and Severity of Debt Problems: An Analysis of the Irish EU-SILC 2008," Working Papers 201113 Keywords : poverty, Geary Institute, University College Dublin.
    4. Antonella D’Agostino & Andrea Regoli, 2013. "Life Conditions and Opportunities of Young Adults: Evidence from Italy in European Comparative Perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 113(3), pages 1205-1235, September.
    5. Sabina Alkire, Mauricio Apablaza, 2016. "Multidimensional Poverty in Europe 2006-2012: Illustrating a Methodology," OPHI Working Papers 74, Queen Elizabeth House, University of Oxford.
    6. Dorothy Watson & Christopher T. Whelan & Bertrand Maître & Helen Russell, 2018. "Social Class and Conversion Capacity: Deprivation Trends in the Great Recession in Ireland," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 140(2), pages 549-570, November.
    7. McGinnity, Frances & Quinn, Emma & O'Connell, Philip J. & Donnelly, Nora, 2011. "Annual Monitoring Report on Integration 2010," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT183.
    8. Christopher T. Whelan & Bertrand Maitre, 2010. "Identifying Economically Vulnerable Groups as the Economic Crisis Emerged," The Economic and Social Review, Economic and Social Studies, vol. 41(4), pages 501-525.
    9. Christopher T. Whelan & Bertrand Maitre, 2012. "Identifying Childhood Deprivation: How Well Do National Indicators of Poverty and Social Exclusion in Ireland Perform?," The Economic and Social Review, Economic and Social Studies, vol. 43(2), pages 251-272.
    10. Christopher Whelan & Bertrand Maitre, 2012. "GINI DP 36: Material deprivation, economic stress and reference groups in Europe: An analysis of EU-SILC 2009," GINI Discussion Papers 36, AIAS, Amsterdam Institute for Advanced Labour Studies.
    11. Christopher Whelan & Bertrand Maitre, 2010. "Poverty in Ireland in Comparative European Perspective," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 95(1), pages 91-110, January.
    12. Manuela Coromaldi & Mariangela Zoli, 2012. "Deriving Multidimensional Poverty Indicators: Methodological Issues and an Empirical Analysis for Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 107(1), pages 37-54, May.
    13. Selcuk Beduk, 2018. "Missing the Unhealthy? Examining Empirical Validity of Material Deprivation Indices (MDIs) Using a Partial Criterion Variable," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 135(1), pages 91-115, January.
    14. Christopher T. Whelan & Bertrand Maitre, 2008. "“New” and “Old” Social Risks: Life Cycle and Social Class Perspectives on Social Exclusion in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 39(2), pages 131-156.
    15. Watson, Dorothy & Maître, Bertrand & Whelan, Christopher T., 2012. "Understanding Childhood Deprivation in Ireland," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT125.
    16. McGinnity, Frances & Quinn, Emma & Kingston, Gillian & O'Connell, Philip J., 2012. "Annual Monitoring Report on Integration 2011," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT216.
    17. Christopher T. Whelan & Bertrand Maître, 2012. "Material Deprivation, Economic Stress and Reference Groups in Europe: An Analysis of EU-SILC2009," Working Papers 201206, Geary Institute, University College Dublin.
    18. Dorothy Watson & Christopher T. Whelan & Bertrand Maître & James Williams, 2017. "Non-Monetary Indicators and Multiple Dimensions: The ESRI Approach to Poverty Measurement," The Economic and Social Review, Economic and Social Studies, vol. 48(4), pages 369-392.
    19. repec:aia:ginidp:dp36 is not listed on IDEAS

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