Income,deprivation and economic stress in the enlarged European Union |
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Authors: | Christopher T Whelan Bertrand Maître |
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Institution: | (1) Economic and Social Research Institute, 4 Burlington Road, Dublin 4, Ireland |
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Abstract: | At risk of poverty indicators based on relative income measures suggest that within the enlarged EU societies located at quite
different points on a continuum of affluence have similar levels of poverty. Substantial differences in levels of income between
societies do not in themselves invalidate this approach. However, the relative income approach fails to capture the fact that,
if countries are grouped in terms of level of GDP, between economic cluster differences in life-style deprivation are sharper
at lower income levels. Support for the argument relating to restricted reference groups is found in relation to the contrast
between the twelve most affluent EU countries and all others. The limitations of relative income poverty lines have little
to do with the process of enlargement as such. Instead the major problem involves the weak association between income and
deprivation in the more affluent countries. However, as a consequence of such difficulties, such indicators do not provide
entirely meaningful comparisons of levels of disadvantage across economic clusters. The current analysis, rather than supporting
the alternative of a focus on absolute income or an EU wide poverty line, suggests that we should take the argument for adopting
a multidimensional approach to the measurement of poverty more seriously. |
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Keywords: | relative income deprivation economic strain reference groups |
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