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

  • Christopher T. Whelan

    (Economic and Social Research Institute, Dublin)

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 basic deprivation items that covers a broader range than the original set and provides a more reliable and valid measure. Consistent poverty measures incorporating the revised basic deprivation measure and adopting a threshold of two or more items provide similar estimates of levels of poverty to the original measure. The new broader measure is more strongly associated with 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 11-item index but not the 8-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 broader basic deprivation index comprising the 11-item index available in EU-SILC with income poverty, identify those exposed to generalised deprivation arising from lack of resources. This revised deprivation threshold taken together with being below 60 per cent of median income has now been adopted as the official consistent poverty measure in the Irish National Action Plan for Social Inclusion.

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File URL: http://www.esr.ie/Vol38_2/03ESRIVol38.pdf
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Article provided by Economic and Social Studies in its journal Economic and Social Review.

Volume (Year): 38 (2007)
Issue (Month): 2 ()
Pages: 211-234

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Handle: RePEc:eso:journl:v:38:y:2007:i:2:p:211-235
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  1. 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).
  2. Jesus Perez-Mayo, 2005. "Identifying deprivation profiles in Spain: a new approach," Applied Economics, Taylor & Francis Journals, vol. 37(8), pages 943-955.
  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. Nolan, Brian & Whelan, Christopher T., 1996. "Resources, Deprivation, and Poverty," OUP Catalogue, Oxford University Press, number 9780198287858, March.
  5. Christopher Whelan & Bertrand Maître, 2007. "Income, deprivation and economic stress in the enlarged European Union," Social Indicators Research, Springer, vol. 83(2), pages 309-329, September.
  6. Christopher T. Whelan & Bertrand Maître, 2005. "Income, Deprivation and Economic Strain in the Enlarged European Union," Papers WP164, Economic and Social Research Institute (ESRI).
  7. 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.
  8. 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.
  9. 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).
  10. 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).
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