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Has the Great Recession Changed the Deprivation Profile of Low Income Groups? Evidence from Spain

Author

Listed:
  • Rosa Martínez

    (Universidad Rey Juan Carlos)

  • Carolina Navarro

    (UNED)

Abstract

This paper analyses how the economic crisis has modified the relationship between income and mate¬rial deprivation in Spain, one of the European countries most affected by the crisis. We show that the degree of overlap between low income and material deprivation has increased by around 50% from 2008 to 2012, even despite the offsetting effect of the reduction in the (relative) income poverty threshold. We demonstrate that the Great Recession has produced a significant recomposition of the poverty profile in Spain. Our findings underline the increasing role played by long-term unemployment and by differences in tenure status of households in predicting this overlap, four years after the bursting of the property bubble.

Suggested Citation

  • Rosa Martínez & Carolina Navarro, 2016. "Has the Great Recession Changed the Deprivation Profile of Low Income Groups? Evidence from Spain," Hacienda Pública Española / Review of Public Economics, IEF, vol. 218(3), pages 79-104, September.
    • Handle: RePEc:hpe:journl:y:2016:v:218:i:3:p:79-104
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    References listed on IDEAS

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    1. Luis Ayala (*) & Carolina Navarro, "undated". "Multidimensional Indices Of Housing Deprivation With Application To Spain," Working Papers 12-04 Classification-JEL , Instituto de Estudios Fiscales.
    2. José Casado, 2011. "From income to consumption: measuring households partial insurance," Empirical Economics, Springer, vol. 40(2), pages 471-495, April.
    3. Luis Ayala & Antonio Jurado & Jesús Pérez‐Mayo, 2011. "Income Poverty And Multidimensional Deprivation: Lessons From Cross‐Regional Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 57(1), pages 40-60, March.
    4. Yekaterina Chzhen, 2014. "Child Poverty and Material Deprivation in the European Union during the Great Recession," Papers inwopa723, Innocenti Working Papers.
    5. Sara Ayllón & Magda Mercader & Xavier Ramos, 2004. "Caracterización de la privación y de la pobreza en Catalunya," Working Papers wpdea0410, Department of Applied Economics at Universitat Autonoma of Barcelona.
    6. E. Bárcena-Martín & B. Lacomba & A. I. Moro-Egido & S. Pérez-Moreno, 2014. "Country Differences in Material Deprivation in Europe," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 802-820, December.
    7. Carolina Navarro & Luis Ayala, 2008. "Multidimensional housing deprivation indices with application to Spain," Applied Economics, Taylor & Francis Journals, vol. 40(5), pages 597-611.
    8. Caroline Dewilde, 2008. "Individual and institutional determinants of multidimensional poverty: A European comparison," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 86(2), pages 233-256, April.
    9. Luis Ayala & Antonio Jurado & Jesús Pérez-Mayo, 2014. "Drawing the Poverty Line: Do Regional Thresholds and Prices Make a Difference?," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 36(2), pages 309-332.
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    Cited by:

    1. Achille Lemmi & Donatella Grassi & Alessandra Masi & Nicoletta Pannuzi & Andrea Regoli, 2019. "Methodological Choices and Data Quality Issues for Official Poverty Measures: Evidences from Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(1), pages 299-330, January.
    2. Javier Ballesteros Muñoz & Jorge Onrubia, 2022. "Régimen de tenencia de la vivienda habitual y desigualdad de la renta de los hogares españoles," Studies on the Spanish Economy eee2022-26, FEDEA.
    3. Ayala, Luis & Bárcena-Martín, Elena & Cantó, Olga & Navarro, Carolina, 2022. "COVID-19 lockdown and housing deprivation across European countries," Social Science & Medicine, Elsevier, vol. 298(C).
    4. Chiara Mussida & Maria Laura Parisi, 2021. "Social exclusion and financial distress: evidence from Italy and Spain," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(3), pages 995-1024, October.

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    More about this item

    Keywords

    Low income; poverty; material deprivation; poverty profile; Great Recession;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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