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Summarizing multiple deprivation indicators

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  • Cappellari, Lorenzo
  • Jenkins, Stephen P.

Abstract

Deprivation scales derived from multiple, typically dichotomous, indicators, are widely used to monitor households’ standards of living, and to complement measures of living standards based on income. We use an item response modelling (IRM) framework to address several issues concerning the derivation of deprivation scales in general and the use of sum-score deprivation indices in particular. Although we favour the IRM approach over the sum-score one in principle, we find in an illustrative analysis of basic lifestyle deprivation in Britain in the mid-1990s that both approaches provide very similar pictures of households’ circumstances. We conclude with further discussion of the relative merits of the two approaches and highlight some topics for future research.

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Paper provided by Institute for Social and Economic Research in its series ISER Working Paper Series with number 2006-40.

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Date of creation: 01 Aug 2006
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Publication status: published
Handle: RePEc:ese:iserwp:2006-40

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  1. Richard Layte & Brian Nolan & Christopher T. Whelan, 1999. "Targeting Poverty: Lessons From Monitoring Ireland's National Anti-Poverty Strategy. Published in Journal of Social Policy, Vol 29 No 4," Papers, Economic and Social Research Institute (ESRI) WP117, Economic and Social Research Institute (ESRI).
  2. Richard Spady, 2006. "Identification and estimation of latent attitudes and their behavioral implications," CeMMAP working papers, Centre for Microdata Methods and Practice, Institute for Fiscal Studies CWP12/06, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  3. 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, Economic and Social Research Institute (ESRI) WP021, Economic and Social Research Institute (ESRI).
  4. Lorenzo Cappellari & Stephen P. Jenkins, 2003. "Multivariate probit regression using simulated maximum likelihood," United Kingdom Stata Users' Group Meetings 2003, Stata Users Group 10, Stata Users Group.
  5. Pasi Moisio, 2004. "A Latent Class Application to the Multidimensional Measurement of Poverty," Quality & Quantity: International Journal of Methodology, Springer, Springer, vol. 38(6), pages 703-717, December.
  6. Anders Skrondal & Sophia Rabe-Hesketh, 2007. "Latent Variable Modelling: A Survey," Scandinavian Journal of Statistics, Danish Society for Theoretical Statistics;Finnish Statistical Society;Norwegian Statistical Association;Swedish Statistical Association, vol. 34(4), pages 712-745.
  7. Nolan, Brian & Whelan, Christopher T., 1996. "Resources, Deprivation, and Poverty," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780198287858, October.
  8. 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.
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Cited by:
  1. Raileanu Szeles, Monica & Fusco, Alessio, 2009. "Item response theory and the measurement of deprivation: Evidence from PSELL-3," IRISS Working Paper Series, IRISS at CEPS/INSTEAD 2009-05, IRISS at CEPS/INSTEAD.
  2. Taylor, Mark P. & Jenkins, Stephen P. & Sacker, Amanda, 2011. "Financial capability and psychological health," Journal of Economic Psychology, Elsevier, Elsevier, vol. 32(5), pages 710-723.
  3. Pieroni, Luca & d'Agostino, Giorgio & Bartolucci, Francesco, 2013. "Identifying corruption through latent class models: evidence from transition economies," MPRA Paper 43981, University Library of Munich, Germany.
  4. Ayala, Luis & Navarro, Carolina, 2007. "The dynamics of housing deprivation," Journal of Housing Economics, Elsevier, Elsevier, vol. 16(1), pages 72-97, March.
  5. repec:ese:iserwp:2009-34 is not listed on IDEAS
  6. Raileanu Szeles, Monica, 2007. "The patterns and causes of social exclusion in Luxembourg," IRISS Working Paper Series, IRISS at CEPS/INSTEAD 2007-09, IRISS at CEPS/INSTEAD.
  7. Merz, Joachim & Rathjen, Tim, 2009. "Time and Income Poverty: An Interdependent Multidimensional Poverty Approach with German Time Use Diary Data," IZA Discussion Papers 4337, Institute for the Study of Labor (IZA).
  8. repec:ese:iserwp:2011-18 is not listed on IDEAS
  9. Calvert, E. (Emma) & Brian Nolan, 2012. "GINI DP 68: Material Deprivation in Europe," GINI Discussion Papers, AIAS, Amsterdam Institute for Advanced Labour Studies 68, AIAS, Amsterdam Institute for Advanced Labour Studies.
  10. Joachim Merz & Tim Rathjen, 2011. "Intensity of Time and Income Interdependent Multidimensional Poverty: Well-Being and Minimum 2DGAP ; German Evidence," SOEPpapers on Multidisciplinary Panel Data Research 411, DIW Berlin, The German Socio-Economic Panel (SOEP).
  11. Christopher T. Whelan & Brian Nolan & Bertrand Maître, 2012. "Multidimensional Poverty Measurement in Europe: An Application of the Adjusted Headcount Approach," Working Papers, Geary Institute, University College Dublin 201211, Geary Institute, University College Dublin.
  12. Joachim Merz & Tim Rathjen, 2011. "Zeit- und Einkommensarmut von Freien Berufen und Unternehmern," FFB-Discussionpaper, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg 89, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
  13. FAYE Ousmane & BASCHIERI Angela & FALKINGHAM Jane & MUINDI Kanyiva, 2010. "Hunger and Food Insecurity in Nairobi's Slums: An assessment using IRT models'," CEPS/INSTEAD Working Paper Series 2010-33, CEPS/INSTEAD.
  14. Christopher T. Whelan & Bertrand Maître, 2010. "Welfare Regime and Social Class Variation in Poverty and Economic Vulnerability in Europe: An Analysis of EU-SILC," Working Papers, Geary Institute, University College Dublin 201010, Geary Institute, University College Dublin.
  15. Joachim Merz & Henning Stolze, 2010. "Kumulation von Querschnitten - Evaluierung alternativer Konzepte für die kumulierten laufenden Wirtschaftsrechnungen 1999 bis 2003 im Vergleich zur Einkommens- und Verbrauchsstichprobe 2003," FFB-Discussionpaper, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg 85, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
  16. Christopher Whelan & Brian Nolan & Bertrand Maitre, 2012. "GINI DP 40: Multidimensional Poverty Measurement in Europe: An Application of the Adjusted Headcount Approach," GINI Discussion Papers, AIAS, Amsterdam Institute for Advanced Labour Studies 40, AIAS, Amsterdam Institute for Advanced Labour Studies.
  17. FUSCO Alessio, 2012. "The relationship between income and housing deprivation in Luxembourg: a longitudinal analysis," CEPS/INSTEAD Working Paper Series 2012-10, CEPS/INSTEAD.
  18. Adam Carle & Kurt Bauman & Kathleen Short, 2009. "Assessing the Measurement and Structure of Material Hardship in the United States," Social Indicators Research, Springer, Springer, vol. 92(1), pages 35-51, May.
  19. Mark Taylor, 2011. "Measuring Financial Capability and its Determinants Using Survey Data," Social Indicators Research, Springer, Springer, vol. 102(2), pages 297-314, June.

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