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Economic insecurity in Spain: A multidimensional analysis

Author

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  • Marina Romaguera de la Cruz

    (Universidad de Alcalá and EQUALITAS, Spain)

Abstract

In this paper, we propose the use of a multidimensional approach to the measurement of economic insecurity in Spain. Using longitudinal EU-SILC data from 2008 to 2015, we calculate six different unidimensional indicators proxying the subjective and objective determinants of economic insecurity. We combine these six indicators into a single Economic Insecurity Index that allows for measuring incidence and intensity and for which we undertake a variety of robustness checks regarding the aggregation of the different dimensions (simple mean, PCA and counting approach). Results show that the probability of being economically insecure is higher for the lowest income deciles, young, temporary employees and the unemployed, while tertiary education and a relatively high occupation significantly reduces it. The incidence of insecurity falls as income deciles grow, even if insecurity affects the whole range of the income distribution, and it is significantly present in middle income households. Moreover, the contributions to insecurity by dimensions are significantly different as income grows.

Suggested Citation

  • Marina Romaguera de la Cruz, 2017. "Economic insecurity in Spain: A multidimensional analysis," Working Papers 448, ECINEQ, Society for the Study of Economic Inequality.
    • Handle: RePEc:inq:inqwps:ecineq2017-448
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    Cited by:

    1. Begoña Cabeza & Koen Decancq, 2018. "Effort or Luck? Believing in the role of effort during the Spanish economic recession," Working Papers 1818, Herman Deleeck Centre for Social Policy, University of Antwerp.
    2. Joaquín Prieto, 2022. "A Multidimensional Approach to Measuring Economic Insecurity: The Case of Chile," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(2), pages 823-855, September.
    3. Marek Kośny & Maria Piotrowska, 2019. "Assessment of Economic Security of Households Based on a Scenario Analysis," Economies, MDPI, vol. 7(3), pages 1-20, August.
    4. Joaquín Prieto, 2021. "A multidimensional approach to measuring economic insecurity: The case of Chile," Working Papers 591, ECINEQ, Society for the Study of Economic Inequality.
    5. Prieto, Joaquin, 2021. "A multidimensional approach to measuring economic insecurity: the case of Chile," LSE Research Online Documents on Economics 112490, London School of Economics and Political Science, LSE Library.
    6. Prieto Suarez, Joaquin, 2022. "A multidimensional approach to measuring economic insecurity: the case of Chile," LSE Research Online Documents on Economics 114623, London School of Economics and Political Science, LSE Library.
    7. Costanzo Ranci & Jason Beckfield & Laura Bernardi & Andrea Parma, 2021. "New Measures of Economic Insecurity Reveal its Expansion Into EU Middle Classes and Welfare States," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(2), pages 539-562, December.

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    More about this item

    Keywords

    economic insecurity; employment instability; volatility; income;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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