Has the Great Recession Changed the Deprivation Profile of Low Income Groups? Evidence from Spain

Abstract

This paper analyses how the economic crisis has modified the relationship between income and material deprivation in Spain, one of the European countries most affected by the crisis. We show that the degree of overlap between low income and material deprivation has increased by around 50% from 2008 to 2012, even despite the offsetting effect of the reduction in the (relative) income poverty threshold. We demonstrate that the Great Recession has produced a significant recomposition of the poverty profile in Spain. Our findings underline the increasing role played by long-term unemployment and by differences in tenure status of households in predicting this overlap, four years after the bursting of the property bubble.

COVID-19 lockdown and housing deprivation across European countries

“…Other authors have used the latent trait model under item response theory (IRT) to measure poverty ranking assets according to the prevalence of ownership of durables, including housing equipment ( Deutsch et al, 2020 ). Martínez and Navarro (2016) used IRT to analyze a set of indicators of material deprivation, including some of the most common housing indicators.…”

Social exclusion and financial distress: evidence from Italy and Spain

“…5 in "Appendix" shows SMD and at-risk-of-poverty rates for Italy and Spain for the period of [2006][2007][2008][2009][2010][2011][2012][2013][2014][2015][2016][2017]. Navarro, 2016). The correlation indeed varies significantly across European countries (Salcedo & Izquierdo Llanes, 2019).…”