Using Nonmonetary Deprivation Indicators to Analyze European Poverty and Social Exclusion
Using Nonmonetary Deprivation Indicators to Analyze European Poverty and Social Exclusion
Research and monitoring of poverty in rich countries relies primarily on household income to capture living standards and distinguish the poor. Significant efforts have been made to broaden the measure of financial resources and capture the dynamics of income over time. At the same time, there is increasing interest in using nonmonetary information to improve the measurement and understanding of poverty. Such nonmonetary indicators are increasingly used in individual European countries, as well as at the EU level, with the suite of indicators employed to monitor the EU's social inclusion process recently expanded to include a summary deprivation measure. This chapter focuses on the rationales underpinning the use of measures of material deprivation and at the variety of ways they are employed in research and monitoring poverty. It looks at some key patterns revealed by deprivation indicators across the EU, and then discusses the implications for capturing poverty and its multidimensionality. Finally, it highlights some challenges in the further development and use of such measures.
Keywords: poverty measurement, rich countries, European Union, social inclusion, material deprivation
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