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Summarizing multiple deprivation indicators

  • Cappellari, Lorenzo
  • Jenkins, Stephen P.

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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File URL: https://www.iser.essex.ac.uk/research/publications/working-papers/iser/2006-40.pdf
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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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Web page: https://www.iser.essex.ac.uk/
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  1. 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.
  2. Lorenzo Cappellari & Stephen P. Jenkins, 2003. "Multivariate probit regression using simulated maximum likelihood," Stata Journal, StataCorp LP, vol. 3(3), pages 278-294, September.
  3. 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.
  4. Richard Spady, 2006. "Identification and estimation of latent attitudes and their behavioral implications," CeMMAP working papers CWP12/06, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  5. 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).
  6. 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 WP117, Economic and Social Research Institute (ESRI).
  7. Pasi Moisio, 2004. "A Latent Class Application to the Multidimensional Measurement of Poverty," Quality & Quantity: International Journal of Methodology, Springer, vol. 38(6), pages 703-717, December.
  8. Nolan, Brian & Whelan, Christopher T., 1996. "Resources, Deprivation, and Poverty," OUP Catalogue, Oxford University Press, number 9780198287858, March.
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