The dual approach for measuring multidimensional deprivation: Theory and empirical evidence

Rolf Aaberge, Eugenio Peluso and Henrik Sigstad

Front page of Journal of Public Economics

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Published in:

Journal of Public Economics 2019, Volum 177 (September)

Link to the paper

Abstract:

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.

Published Aug. 12, 2020 9:25 AM - Last modified Sep. 9, 2020 12:29 PM