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The Impact of Macro-Economic Circumstances and Social Protection Expenditure on Economic Deprivation in 25 European Countries, 2007–2011

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  • Mark Visser
  • Maurice Gesthuizen
  • Peer Scheepers

Abstract

In this study, we investigate to what extent macro-economic circumstances and social protection expenditure affect economic deprivation. We use three items from round five of the European Social Survey (2010–2011) to construct our latent outcome variable, which we label economic deprivation in the 3 years before 2010–2011. The results of our linear multilevel regression analyses indicate that in countries that perform worse economically, individual experiences of economic deprivation are more prevalent: the stronger the rise in the unemployment rate and the lower a country’s wealth, the more economic deprivation individuals experience. We also find that in countries with high levels of social protection, people experience less economic deprivation as compared to countries with low levels of social protection. In turn, adverse economic conditions in a country temper these positive outcomes of social welfare arrangements. Finally, our study reveals that the strength of the relationship between a low income and economic deprivation strongly varies according to the economic circumstances in a country and the generosity of the welfare state. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Mark Visser & Maurice Gesthuizen & Peer Scheepers, 2014. "The Impact of Macro-Economic Circumstances and Social Protection Expenditure on Economic Deprivation in 25 European Countries, 2007–2011," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 115(3), pages 1179-1203, February.
    • Handle: RePEc:spr:soinre:v:115:y:2014:i:3:p:1179-1203
    DOI: 10.1007/s11205-013-0259-1
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    Cited by:

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    2. Marisa Hidalgo-Hidalgo, 2019. "Childhood-Related Policies and Adult Poverty: Evidence from Some European Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(1), pages 191-217, July.
    3. Ayala, Luis & Martín-Román, Javier & Navarro, Carolina, 2023. "Unemployment shocks and material deprivation in the European Union: A synthetic control approach," Economic Systems, Elsevier, vol. 47(1).
    4. Pim Verbunt & Anne-Catherine Guio, 2019. "Explaining Differences Within and Between Countries in the Risk of Income Poverty and Severe Material Deprivation: Comparing Single and Multilevel Analyses," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(2), pages 827-868, July.
    5. Renata Halaskova, 2018. "Structure of General Government Expenditure on Social Protection in the EU Member States Using Differentiation Characteristics," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 14(4), pages 7-21.
    6. Tim Reeskens & Leen Vandecasteele, 2017. "Economic Hardship and Well-Being: Examining the Relative Role of Individual Resources and Welfare State Effort in Resilience Against Economic Hardship," Journal of Happiness Studies, Springer, vol. 18(1), pages 41-62, February.
    7. Mussida, Chiara & Parisi, Maria Laura & Pontarollo, Nicola, 2023. "Severity of material deprivation in Spanish regions and the role of the European Structural Funds," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    8. Teresa Leão & Inês Campos-Matos & Clare Bambra & Giuliano Russo & Julian Perelman, 2018. "Welfare states, the Great Recession and health: Trends in educational inequalities in self-reported health in 26 European countries," PLOS ONE, Public Library of Science, vol. 13(2), pages 1-14, February.

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