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Income, Deprivation and Poverty: a longitudinal analysis

Income, Deprivation and Poverty: a longitudinal analysis. Richard Berthoud and Mark Bryan Institute for Social and Economic Research University of Essex.

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Income, Deprivation and Poverty: a longitudinal analysis

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  1. Income, Deprivation and Poverty:a longitudinal analysis Richard Berthoud and Mark Bryan Institute for Social and Economic Research University of Essex

  2. The poor shall be taken to mean persons . . . . whose resources . . . . are so limited as to exclude them from the minimum way of life of member states in which they live. (European Union 1984) How do you measure poverty?

  3. The poor shall be taken to mean persons . . . . whose resources . . . . are so limited as to exclude them from the minimum way of life of member states in which they live. (European Union 1984) How do you measure poverty?

  4. BHPS data • Nine waves: 1996-2004 • Household level variables: deprivation scores, net income, household structure etc • Follow individuals over time • Below pension age • 6,590 individuals from 2,279 original households, 50,159 person wave observations

  5. Components of the deprivation index Cronbach’s α = 0.75

  6. Deprivation score plotted by income

  7. Trends in daily living deprivation score:

  8. Summary of a pooled cross-sectional regression equation predicting deprivation scores

  9. Cross-sectional and longitudinal relationships between log income and deprivation

  10. Cross-sectional and longitudinal relationships between log income and deprivation

  11. Cross-sectional and longitudinal relationships between log income and deprivation

  12. Conclusions • Two measurement issues • Very low incomes • Deprivation over time • The dynamics of deprivation • Longitudinal relationship much weaker • Focus on longer term incomes • Poverty is less common, but more serious and more intransigent than one-off measures record

  13. Further information • R. Berthoud, M. Bryan and E. Bardasi, The Dynamics of Deprivation, DWP Research Report 219, Department for Work and Pensions, 2004 • Shorter article on request from berthoud@essex.ac.uk

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