This paper assesses to what extent differences in the characteristics of individuals (micro‐level perspective) and country‐specific factors (macro‐level perspective) can explain country differences with respect to material deprivation levels. Thus, our work aims to simultaneously consider the macro dimension and the predominantly individually‐oriented study field of material deprivation using multilevel techniques. We make use of the European Union Statistics on Income and Living Conditions. Our results show that country‐specific factors seem to be much more relevant than individual effects in explaining country differences in material deprivation. We estimate that the introduction of country‐specific factors reduces the proportion of total variance due to between‐country differences in deprivation by 72.7 percent, while individual‐level variables reduce this proportion by only 9.4 percent. We also show, through interaction variables, that the effect of sociodemographic characteristics can be shaped by institutional and structural factors, especially by the level of GDP.
Children are generally at a higher risk of poverty than the population as a whole, although the mechanisms that lead to their socio-economic vulnerability vary widely across European countries. This paper aims to further our understanding of to what extent cross-country variations in child poverty risk are associated with different ways of social transfer targeting: pro-poor versus pro-child targeting. In particular, we address the potential impact on child poverty of countries’ intent to target transfers at lower incomes and children across 30 European countries. Using a multilevel framework, we find that not only the size of the transfer system, but also the form of targeting matters in reducing child poverty. Specifically, the countries’ intent to target children matters even more than their intent to target lower incomes, in terms of reducing child poverty. Moreover, the prevalence of multi-generational households in a country seems to be associated with an attempt to protect against child poverty in countries with lower levels of pro-child targeting.
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