The dual approach for measuring multidimensional deprivation: Theory and empirical evidence
Rolf Aaberge, Eugenio Peluso and Henrik Sigstad
Journal of Public Economics 2019, Volum 177 (September)
This paper is concerned with the problem of ranking and quantifying the extent of deprivation in multidimensional distributions of dichotomous deprivation variables. To this end, we introduce a family of measures of deprivation justified on the basis of dual social evaluation functions.
Two alternative criteria of second-degree deprivation count distribution dominance are shown to divide the proposed family of deprivation measures into two separate subfamilies, which can be justified by a combination of correlation increasing and count neutral rearrangements.
Based on EU-SILC data, we show that application of the proposed measures might lead to conclusions that differ from those attained by standard cut-off measures, and that results based on cut-off measures are more sensitive to the choice of specific measure.