Poverty, Deprivation and Consistent Poverty

16 Pages Posted: 24 Nov 2009

See all articles by Peter Saunders

Peter Saunders

University of New South Wales (UNSW) - Social Policy Research Centre (SPRC)

Yuvisthi Naidoo

University of New South Wales (UNSW) - Social Policy Research Centre (SPRC)

Abstract

Controversy over the setting of poverty lines and its narrow focus on income has undermined the influence of poverty research on policy. The deprivation approach overcomes these limitations by identifying deprivation as an inability to afford items that receive majority support for being essential. This paper estimates the incidence of deprivation and compares the results with those produced using a conventional poverty framework. The results confirm overseas findings by showing that the groups most deprived differ from those with the highest poverty rates and that there is a low degree of overlap between income poverty and deprivation. Older people show up as faring better under the deprivation approach, while working-age individuals and families fare worse and the relative position of the most highly disadvantaged groups are worse in terms of deprivation than in terms of poverty. Deprivation also provides a clearer differentiation between those who can and cannot afford specific necessities than a classification based on low income, and is also shown to vary systematically with several indicators of subjective well-being. Estimates of consistent poverty that combine low income with deprivation are shown to differ from conventional (income-based) poverty rates, and provide the basis for future poverty measures.

Suggested Citation

Saunders, Peter and Naidoo, Yuvisthi, Poverty, Deprivation and Consistent Poverty. Economic Record, Vol. 85, No. 4, pp. 417-432, December 2009, Available at SSRN: https://ssrn.com/abstract=1509736 or http://dx.doi.org/10.1111/j.1475-4932.2009.00565.x

Peter Saunders

University of New South Wales (UNSW) - Social Policy Research Centre (SPRC) ( email )

Sydney, NSW 2052
Australia
612 9385 7810 (Phone)
61 2 9385 1049 ext. 1049 (Fax)

Yuvisthi Naidoo

University of New South Wales (UNSW) - Social Policy Research Centre (SPRC) ( email )

Sydney, NSW 2052
Australia

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