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Multidimensional disadvantage and wellbeing

Author

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  • Lynn Riggs

    (Productivity Commission)

Abstract

While poverty is thought to be an enduring cause of socioeconomic disadvantage, determining which people live in poverty is not a straightforward task. Hence, examining the relationship between poverty, disadvantage and wellbeing is complicated by the difficulty of determining the extent to which people live in poverty or the extent to which they are disadvantaged. In the past, poverty measurement has predominantly been income based. However, due to the limitations of income measurement and the somewhat arbitrary setting of income poverty thresholds, some people who are not impoverished are counted as impoverished and vice versa. Recent work in poverty measurement has endeavoured to capture measures of both deprivation and social exclusion as poverty indicators. This paper differs from previous research by examining the dimensions of disadvantage, irrespective of an a priori classification of indicators, to assess the extent to which indicators of disadvantage are in fact measuring different dimensions of disadvantage. Principal Components Analysis is used to construct measures of the different dimensions of disadvantage, and these measures are used to examine the relationship between these different dimensions of disadvantage and wellbeing.

Suggested Citation

  • Lynn Riggs, 2023. "Multidimensional disadvantage and wellbeing," Working Papers 2023/01, New Zealand Productivity Commission.
  • Handle: RePEc:ayz:wpaper:23_01
    as

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    File URL: https://www.productivity.govt.nz/assets/Research/Multidimensional-disadvantage-and-wellbeing-WP-Version.pdf
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    References listed on IDEAS

    as
    1. Alkire, Sabina & Foster, James & Seth, Suman & Santos, Maria Emma & Roche, Jose Manuel & Ballon, Paola, 2015. "Multidimensional Poverty Measurement and Analysis," OUP Catalogue, Oxford University Press, number 9780199689491, Decembrie.
    2. Sabina Alkire & James Foster, 2011. "Understandings and misunderstandings of multidimensional poverty measurement," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(2), pages 289-314, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    socioeconomic disadvantage; wellbeing; social exclusion; deprivation;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

    NEP fields

    This paper has been announced in the following NEP Reports:

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