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Analysis of Poverty in Slovakia Based on the Concept of Relative Deprivation

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Author Info

  • Tomáš Želinský

Abstract

It is always difficult to define the one and only measure of poverty, as there are different concepts of poverty based on a number of welfare indicators. The paper discuses main approaches to individual welfare measurement. A measure of individual welfare in the concept of relative deprivation is proposed. Three dimensions of relative deprivation are considered (economic strain, inability to afford certain items, and housing). The measure is based on multiplicative approach and thus is more sensitive to changes and differences in data than measures based on additive approach. The measure reflects the complex nature of households´ relative deprivation and is applied to Slovak EU SILC 2005 - 2008 microdata in order to analyze the level of poverty in Slovakia in the concept of relative deprivation. Three different poverty lines are applied to the data and results are compared. Level of poverty in terms of relative deprivation is decreasing in Slovakia over time. Using the proposed approach, the results strongly depend on the number of components included in each dimension, as well as the components itself. In accordance with economic changes in the society, in the further research reappraisal of certain components could be a matter of discussion in order to reflect the present situation.

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Bibliographic Info

Article provided by University of Economics, Prague in its journal Politická ekonomie.

Volume (Year): 2010 (2010)
Issue (Month): 4 ()
Pages: 542-565

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Handle: RePEc:prg:jnlpol:v:2010:y:2010:i:4:id:746:p:542-565

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Related research

Keywords: welfare index; relative deprivation; poverty estimation; EU SILC; deprivation index;

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References

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  1. Jonathan Haughton & Shahidur R. Khandker, 2009. "Handbook on Poverty and Inequality," World Bank Publications, The World Bank, number 11985, October.
  2. Menno Pradhan & Martin Ravallion, 2000. "Measuring Poverty Using Qualitative Perceptions Of Consumption Adequacy," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 462-471, August.
  3. Andrew Chesher & Christian Schluter, 2002. "Welfare Measurement and Measurement Error," Review of Economic Studies, Oxford University Press, vol. 69(2), pages 357-378.
  4. Ravallion, Martin, 1996. "Issues in measuring and modeling poverty," Policy Research Working Paper Series 1615, The World Bank.
  5. Sen, Amartya, 1984. "The Living Standard," Oxford Economic Papers, Oxford University Press, vol. 36(0), pages 74-90, Supplemen.
  6. Hagenaars, Aldi J M & van Praag, Bernard M S, 1985. "A Synthesis of Poverty Line Definitions," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 31(2), pages 139-54, June.
  7. Ahluwalia, Montek S., 1976. "Inequality, poverty and development," Journal of Development Economics, Elsevier, vol. 3(4), pages 307-342, December.
  8. Borut Vojinović & Žan Jan Oplotnik, 2008. "Real convergence in the new eu member states," Prague Economic Papers, University of Economics, Prague, vol. 2008(1), pages 23-39.
  9. Jaya Krishnakumar, 2004. "Going Beyond Functionings to Capabilities : an Econometric Model to Explain and Estimate Capabilities," Research Papers by the Institute of Economics and Econometrics, Geneva School of Economics and Management, University of Geneva 2004.12, Institut d'Economie et Econométrie, Université de Genève.
  10. McKenzie, G W & Pearce, I F, 1982. "Welfare Measurement-A Synthesis," American Economic Review, American Economic Association, vol. 72(4), pages 669-82, September.
  11. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  12. Sen, Amartya, 1999. "Commodities and Capabilities," OUP Catalogue, Oxford University Press, number 9780195650389, Octomber.
  13. Desai, Meghnad & Shah, Anup, 1988. "An Econometric Approach to the Measurement of Poverty," Oxford Economic Papers, Oxford University Press, vol. 40(3), pages 505-22, September.
  14. Aldi Hagenaars & Klaas de Vos, 1988. "The Definition and Measurement of Poverty," Journal of Human Resources, University of Wisconsin Press, vol. 23(2), pages 211-221.
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Cited by:
  1. Tomas Zelinsky, 2012. "Changes in Relative Material Deprivation in Regions of Slovakia and the Czech Republic," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 59(3), pages 335-353, June.

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