Polarization or “Squeezed Middle” in the Great Recession?: A Comparative European Analysis of the Distribution of Economic Stress

This paper analyses variation in the impact of the Great Recession on economic stress across income classes for a range of advanced European countries. Our analysis shows Iceland, Ireland and Greece to be quite distinctive in terms of increases in their multidimensional income, material deprivation and economic stress profiles. Between 2008 and 2012 these countries moved from being predictably located within anticipated welfare regimes to becoming clear outliers. For this set of counties, each of which was exposed to different but severe forms of economic shock, trends in income class polarisation versus middle class squeeze were variable. Each exhibited substantial increases in levels of economic stress. However, changes in the pattern of income class differentiation were somewhat different. In Iceland a form of middle class squeeze was observed. For Ireland income class polarization did not exclude middle class squeeze. Greece came closest to fitting the polarization profile. Changes in the distribution of household equivalent income had no effect on stress levels once the impact of material deprivation was taken into account. Changes in levels of material deprivation played a significant role in accounting for changing stress levels but only for the three lowest income classes. These findings bring out the extent to which the impact of the Great Recession on the distribution of economic stress across classes varied even among the hardest-hit countries. They also serve to highlight the advantages of a multidimensional approach that goes beyond reliance on income in seeking to understand the impact of such shocks.     

Explaining Low Subjective Well-Being of Persons with Disabilities in Europe: The Impact of Disability, Personal Resources, Participation and Socio-Economic Status

Persons with chronic disabilities report the lowest subjective well-being (SWB) in many countries. The gap in SWB compared with the non-disabled population is smaller in some countries than in others. Data from the European Social Survey were analysed in order to: (1) describe the inequality in SWB in 21 European countries; and (2) identify the main determinants of this inequality in SWB. Data on a range of topics of a total of 40,605 persons, including 2,846 persons with serious chronic disabilities, were used of the European Social Survey. SWB was measured using multi-item scales for ‘emotional well-being’ and ‘satisfying life’. Variables on disability, socio-demographics (age, gender, household composition), socio-economic status (level of education, net household income), participation (paid work, voluntary work, social contacts), and personal resources (supportive relationships, social cohesion, vitality, optimism, resilience, perceived autonomy, perceived accomplishment, perceived capacity, perceived engagement, perceived meaning and purpose) were entered stepwise in regression models of SWB. The results show that persons with disabilities are in a disadvantaged position in terms of SWB in all countries. In the Northern countries, the gaps between disabled and non-disabled persons are smaller than in Eastern European countries. In all countries inequality in SWB is explained mostly by personal resources and not by the level of disability, socio-economic status or level of participation in work. The implications of these findings for policy and practice (e.g. social cohesion and physical exercise programs) are discussed.     

Poverty,Inequality and Deprivation in South Africa: An Analysis of the 1993 SALDRU Survey

This paper analyses poverty and inequality in South Africa based on data from a comprehensive multi-purpose household survey undertaken in 1993 to provide baseline statistics on poverty and its determinants to the new government. The paper shows that South Africa has among the highest levels of income inequality in the world and compares poorly in most social indicators to countries with similar income levels. Much of the poverty in the country is a direct result of apartheid policies that denied equal access to education, employment, services, and resources to the black population of the country. As a result, poverty has a very strong racial dimension with poverty concentrated among the African population. In addition, poverty is much higher in rural areas, and particularly high in the former homelands. Poverty among female-headed households and among children is also higher than average. Moreover, poverty is closely related to poor education and lack of employment. The poor suffer from lack of access to education, quality health care, basic infrastructure, transport, are heavily indebted, have little access to productive resources, and are heavily dependent on remittances and social transfers, particularly social pensions and disability grants. The paper uses an income-based definition of poverty for most of the analysis. In addition, it develops a broad-based index of deprivation including income, employment, wealth, access to services, health, education, and perceptions of satisfaction as its components. While on average the two indicators correspond fairly closely, the income poverty measure misses a considerable number of people who are severely deprived in many of the non-income measures of well-being. This group of severely deprived not identified by the income poverty measure consists predominantly of Africans living in rural areas, concentrated particularly in the province of KwaZulu/Natal.     

Happiness and Childbearing Across Europe

Using happiness as a well-being measure and comparative data from the European social survey we focus in this paper on the link between happiness and childbearing across European countries. The analysis motivates from the recent lows in fertility in many European countries and that economic wellbeing measures are problematic when considering childbearing. We find significant country differences, though the direct association between happiness and childbearing is modest. However, partnership status plays an important role for both men and women. Working fathers are always happier, whereas working mothers are not, though mothers?? happiness tends to increase with household income.     

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

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.     

Reference Groups and Pensioners’ Subjective Economic Well-Being in Europe

This study contributes to the interdisciplinary debate over the effects of absolute and relative income on subjective well-being by introducing country-level measures of income into the analysis of pensioners’ economic well-being. Both the relevance of alternative reference groups for different phases of old age, measured through median incomes, and the effect of general income inequality within countries are explored. Analyses are based on the cross-sectional components of the survey European Union Statistics on Income and Living Conditions from 2005 to 2011, containing information on 458,769 pensioners from 31 European countries. With the multilevel linear regression analysis method, the effects of different income measures are analyzed both at the individual and country levels. The main result shows that the average income level of pensioners within countries hold spillover effects strong enough to conclude other pensioners constitute a relevant reference point. Pensioners’ high income level decreases individual income adequacy regardless of age. Results also indicated the labour market group having varying effects on different age groups. The general income inequality does not affect pensioners’ subjective economic well-being.     

Support for democracy in cross-national perspective: The detrimental effect of economic inequality

Using survey data and national statistics on 35 modern democracies, this research explores the relationship between economic and political conditions and support for democracy. As expected from modernization theory, support for democracy tends to be highest in countries with a high level of economic development. More importantly, however, I contribute a new finding that income inequality matters much more. Specifically, citizens from countries with relatively low levels of income inequality tend to be more likely than others to support democracy. I also find that household income is positively related to support for democracy in most countries, though it tends to have its strongest effect if economic development is high and income inequality is low. Finally, even after taking into account the level of economic development in one's country, people from former Communist countries tend to have far less support for democracy than those from more established democracies.     

Individual Income Inequality and Its Drivers in Indonesia: A Theil Decomposition Reassessment

This article employs a Theil decomposition analysis to examine various dimensions of income inequality, using the 2007 Indonesian Family Life Survey. The empirical strategy is based on the individual-level income data—instead of group means as in the existing literature—and thus accounts for within-group dispersion of individual incomes. The decomposition exercise reveals that income inequality across education levels constitutes about 13 % of total income inequality. The urban–rural and interprovincial dimensions individually explain 6.0–6.5 %, but the contribution of income inequality by genders appears to be negligible. The findings highlight educational reform as an effective redistributive policy.     

Social and Economic Wellbeing in Europe and the Mediterranean Basin: Building an Enlarged Human Development Indicator

This paper calculates a human Wellbeing Composite Index (WCI) for 42 countries, belonging to the European Economic Space, North Africa and the Middle East, as an alternative to the shortcomings of other well-known measures of socio-economic development (i.e. Gross Domestic Product per head and Human Development Index). To attain this goal, different data envelopment analysis (DEA) models are used as an aggregation tool for seven selected socio-economic variables which correspond to the following wellbeing dimensions: income per capita, environmental burden of disease, income inequality, gender gap, education, life expectancy at birth and government effectiveness. The use of DEA allows avoiding the subjectivity that would be involved in the exogenous determination of weights for the variables included in WCI. The aim is to establish a complete ranking of all countries in the sample, using a three-step process, with the last step consisting in the use of a model that combines DEA and compromise programming, and permits to obtain a set of common weights for all countries in the analysis. The results highlight the distance that still separates Southern Mediterranean countries from the benchmark levels established by some European countries, and also point to the main weaknesses in individual countries’ performance. Nordic countries, plus Switzerland, top the list of best performers, while Mauritania, Libya and Syria appear at the bottom.     

Poverty in Ireland in Comparative European Perspective

In this paper we seek to put Irish poverty rates in a comparative European context. We do so in a context whereby the Irish economic boom and EU enlargement have led to increasing reservations being expressed regarding rates deriving from the EU ‘at risk of poverty’ indicator. Our comparative analysis reports findings for both overall levels of poverty and variation by household reference person characteristics for this indicator and a consistent poverty measure for Ireland, the UK and five smaller European countries spanning a range of welfare regimes. Our findings demonstrate that the distinctiveness of Ireland’s situation lies not in the overall levels of poverty per se but in the very high penalties associated with being in a household where the household reference person is a lone parent or excluded from the labour market.     

Multidimensional Measurement of Poverty Among Women in Sub-Saharan Africa

Since the seminal work of Sen, poverty has been recognized as a multidimensional phenomenon. The recent availability of relevant databases renewed the interest in this approach. This paper estimates multidimensional poverty among women in fourteen Sub-Saharan African countries using the Alkire and Foster multidimensional poverty measures, whose identification method is based on a counting approach. Four dimensions are considered: assets, health, schooling and empowerment. The results show important differences in poverty among the countries of the sample. The multidimensional poverty estimates are compared with some alternative measures such as the Human Development Index, income poverty, asset poverty and the Gender-related Development Index. It is found that including additional dimensions into the analysis leads to country rankings different from those obtained with the mentioned four measures. Decompositions by geographical area and dimension indicate that rural areas are significantly poorer than urban ones and that a lack of schooling is, in general, the highest contributor to poverty. The paper also conducts robustness and sensitivity analyses of the multidimensional estimates with respect to the number of dimensions in which deprivation is required in order to be considered poor, as well as to the poverty lines within each dimension. Several cases of dominance between countries are found in the first robustness test.     

Is Inequality a Latent Construct? An Assessment of Economic Inequality Indicators and Their Relation with Social Cohesion in Europe

In this article, we analyse the relation between different economic inequality indicators and social cohesion. Previous research usually narrows down economic inequality to income inequality, or distinguishes several types of economic inequality. Little attention has until now been given to how different aspects of economic inequality might be related to each other and can have an effect on social cohesion. This article analyses several indicators of economic inequality and makes a distinction between indicators measuring income inequality, poverty, economic strain and unequal distributions of wealth. Arguing that these indicators represent different aspects of inequality, we hypothesise that they cannot be reduced to one latent concept of inequality and have specific relations with social cohesion. In order to test this hypothesis, we conducted an exploratory factor analysis. This resulted in two different factors: one associated with economic hardship, and one associated with imbalances in market outcomes. This would imply that inequality indicators can be classified into two underlying concepts. Secondly, we related the factor scores of the two latent concepts to the social cohesion indicators via regression analyses. This paper focuses on European countries and uses pooled data from the European Social Survey (period 2006–2012), in combination with macro-level data drawn from the OECD, Eurostat and the World Bank. The results demonstrate that the strength of the link between inequality and citizens’ attitudes depends on the type of inequality indicator we analyse: only the factor economic deprivation can be significantly linked to social cohesion.     

Which Inequality Makes People Dissatisfied with Their Lives? Evidence of the Link Between Life Satisfaction and Inequalities

This paper aims at establishing a clear link between different types of inequality and life satisfaction in Europe. We analyse the relationship between life satisfaction and both income inequality and inequality of opportunity using seven waves of the European Social Survey. The results show that in Europe both income inequality and inequality of opportunity reduce people’s life satisfaction. Our main results suggest that all socio-economic groups are dissatisfied with income inequality, whereas primarily low socio-economic individuals worry about inequality of opportunity. We find that expected mobility is very important in explaining the link between inequality and life satisfaction for all socio-economic groups in Europe. We advance the hypothesis that life satisfaction is conditioned by a mix of normative arguments against inequality and by the fear/possibility to lose/gain a good social position. This result complements findings on the mediating role of social mobility in the relationship with subjective well-being.     

Income inequality and solidarity in Europe

This paper studies the relationship between income inequality, a macro-level characteristic, and solidarity of Europeans. To this aim, solidarity is defined as the ‘willingness to contribute to the welfare of other people’. We rely on a theoretical idea according to which feelings of solidarity are derived from both affective and calculating considerations – we derive competing hypotheses relating the extent of income inequality to these ‘underlying’ motivations for solidarity. Using data from the 1999 European Values Study (EVS), we apply multilevel analysis for 26 European countries. Controlling for household income and a range of macro-level characteristics, we find evidence that in more unequal countries people are less willing to take action to improve the living conditions of their fellow-countrymen. This is true for respondents living in both low- and high-income households. According to our theoretical framework, this finding suggests that, at least when measured in terms of ‘willingness to contribute to the welfare of other people’, feelings of solidarity seem to be influenced more strongly by affective, rather than by calculating considerations.     

Socioeconomic and Demographic Predictors of Potable Water and Sanitation Access in Ghana

Lack of access to potable water and good sanitation is still one of the most challenging public health concerns of the twenty-first century despite steady progress over recent decades. Almost a billion people globally lack access to safe water; over two billion live without adequate sanitation facilities. The challenge is even more daunting for Sub-Saharan Africa where coverage levels for both potable water and sanitation remain critically low. The urgent need to address the issue calls for adequate understanding of the socio-economic dimensions. Using the 2008 Ghana Demographic and Health Survey, we investigated the socio-economic and demographic factors associated with access to potable water and improved sanitation facilities. Our generalized linear models reveal that income, education, household size, and region are significant predictors of improved water and sanitation access. Our discussion and conclusion sections highlight the implications of the study results for water policy formulation and implementation in Ghana, and broadly for other developing countries.     

National Income and Income Inequality,Family Affluence and Life Satisfaction Among 13 year Old Boys and Girls: A Multilevel Study in 35 Countries

Adolescence is a critical period where many patterns of health and health behaviour are formed. The objective of this study was to investigate cross-national variation in the relationship between family affluence and adolescent life satisfaction, and the impact of national income and income inequality on this relationship. Data from the 2006 Health Behaviour in School-aged Children: WHO collaborative Study (N = 58,352 across 35 countries) were analysed using multilevel linear and logistic regression analyses for outcome measures life satisfaction score and binary high/low life satisfaction. National income and income inequality were associated with aggregated life satisfaction score and prevalence of high life satisfaction. Within-country socioeconomic inequalities in life satisfaction existed even after adjustment for family structure. This relationship was curvilinear and varied cross-nationally. Socioeconomic inequalities were greatest in poor countries and in countries with unequal income distribution. GDP (PPP US$) and Gini did not explain between country variance in socioeconomic inequalities in life satisfaction. The existence of, and variation in, within-country socioeconomic inequalities in adolescent life satisfaction highlights the importance of identifying and addressing mediating factors during this life stage.     

The polarizing effect of economic inequality on class identification: Evidence from 44 countries

Using cumulative logit mixed models fitted to World Values Survey data from 44 countries, we explore the impact of economic conditions – both at the individual-level and the national-level – on social class identification. Consistent with previous research, we find a positive relationship between household income and class identification in all countries that we explore, though this relationship varies substantially. Also corroborating previous research, we find that ‘low’ class identifications are more likely in poor countries than in rich ones. However, in contrast to previous research that has neglected the role of inequality, our results indicate that the effect of economic development diminishes if income inequality is considered in the same model. We further demonstrate that income inequality has an important polarizing effect on class identification. Specifically, the relationship between household income and class identity tends to be strongest in countries with a high level of income inequality.     

Income and Well-being Across European Provinces

The majority of studies investigate the effect of income on life satisfaction at either individual or country level. This study contributes with analysis at the (sub-national) province level across West European countries. I use a unique dataset Eurobarometer 44.2 Bis that is representative of province populations in a multilevel model. Provinces are defined according to The Nomenclature of Territorial Units for Statistics at second level (NUTS II). Living conditions measured by regional income increase life satisfaction beyond personal income and national income. There is larger life satisfaction inequality between the rich and the poor in poor provinces than in rich provinces. Personal income matters more for life satisfaction in poor provinces than in rich provinces.     

The European 'Welfare Mix': Institutional Configuration and Distributive Outcome in Sweden and the European Union. A Longitudinal and Comparative Perspective

This paper explores the institutional configuration (the three welfare delivery systems: market, welfare state, family) and its distributional correlates (income inequality; poverty rates; inequality related to social cleavages such as social class, generation, gender, region and family). The analysis has a twofold perspective: comparative (comparing 14 EU member states) and longitudinal (comparing Sweden 1975--1995), using nations as statistical units. The European union appears to be divided in three distinct and homogeneous clusters: a Nordic cluster (Sweden, Denmark, Finland) exhibiting large social expenses, high labour market participation and weak family ties. Its distributional features are low income inequality, poverty rates and class inequality, but high levels of inequality between generations; a southern cluster (Greece, Italy, Spain, Portugal) characterised by lower welfare provisions, low employment, but strong traditional families. Its distributional features are high levels of income inequality, poverty and class inequality, but low levels of generational inequality; a central European cluster in intermediate position. UK joins the southern cluster with high levels of income inequality, poverty and class inequality.     

Dimensions of Housing Deprivation for Older People in Ireland

Housing is an important aspect of living standards and quality of life for older persons, but the housing-related problems they may face encompass rather different circumstances, relating to the condition of the dwelling, how well equipped it is, whether housing costs represent a serious burden, and whether the neighbourhood environment is problematic. This paper brings out the importance of distinguishing these different dimensions of housing problems for older people, illustrated empirically using data for Ireland from an important new European dataset. Controlling for other factors, being older is associated with more housing quality problems but fewer housing cost and neighbourhood problems than for those of working age. The variables predicting deprivation among older people differ across the dimensions and the correlations between the dimensions are low. Over half the older people in the sample experience some form of housing-related deprivation, but a majority of these are reporting only one. Scores on a summary index for older persons are much less strongly associated with factors such as household income and poverty, marital status, and location and type of dwelling than for all households, bringing out the importance of distinguishing and studying the different dimensions and framing appropriate policy responses to each.