Country Differences in Material Deprivation in Europe

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...

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Bibliographic Details
Published in:The Review of income and wealth 2014-12, Vol.60 (4), p.802-820
Main Authors: Bárcena-Martín, E., Lacomba, B., Moro-Egido, A. I., Pérez-Moreno, S.
Format: Article
Language:English
Subjects:
contextual and individual effects
Economic analysis
Estimation
Europe
European Union
European Union Statistics on Income and Living Conditions
Eurozone
Financial analysis
Gross domestic product
I32
Income inequality
J16
material deprivation
multilevel analysis
O57
Socioeconomic factors
Standard of living
Studies
Variance analysis
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Summary: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.
ISSN:0034-6586
1475-4991
DOI:10.1111/roiw.12030