Post on 19-Jan-2016
EU-MODA: Poverty and Multiple Overlapping Deprivation Analysis in the EU
Chris de Neubourg Paris, November 2015TIAS School for Business and Society, Tilburg University, SPRI, Brussels, EPRI, Cape Town.
Poverty is usually measured not having enough resources - money
“Poverty is not having the financial resources necessary to support a person at the subsistence level of food, shelter, clothing and other necessities”
(Rowntree, 1901)
• In EU: at risk of poverty: 60% (50%) median national income
EPRI
Monetary poverty measures solve an aggregation and weighting problem
food shelter
clothing
Other necessities
Income needed to pay for this
EPRI
Monetary poverty: as a proxy measure
But what is poverty??
“Poverty is not having the financial resources necessary to support a person at the subsistence level of food, shelter, clothing and other necessities” ?
We can study that by looking at the financial resources to …
But we can also study:
Whether people have enough (adequate) food, shelter, clothing and other necessities
First = monetary povertySecond = deprivations or deprivation poverty
EPRI
5
• Child Poverty Headcount Ratio
• Children in poor households= X% of all children
• It is very common globally, and usual in SSA, for children to be over-represented in poor households
• e.g. Children are 40% of population but 50% of the poor• Consider headcount ratios by household type/composition
Monetary poverty: How do we calculate monetary child poverty?
Monetary poverty: What about child poverty? Why should we focus on child poverty?
• Different because– Basic needs for children are different than those for adults– Children are dependent on others and less mobile, their environment
is especially important– Children do not control income, income may not be spent in ways that
benefit children, must therefore measure their welfare directly
• Important to focus on children because– Poverty can have lasting effects, alter a child’s life forever– Returns to investing in children occur in the future, but policy-makers
can be ‘short-sighted’ and focus on present, ignoring future
Child poverty is probably better measured by deprivation
or at least we need to look at both
aspects: living in a poor family
andnot having what is needed (being
deprived)
Thus we need monetary poverty and deprivation poverty
“Poverty is not having the financial resources necessary to support a person at the subsistence level of food, shelter, clothing and other necessities” ?
We can study that by looking at the financial resources to …
But we can also study:
Whether people have enough (adequate) food, shelter, clothing and other necessities
First = monetary povertySecond = deprivations or deprivation poverty
EPRI
Monetary poverty ≠ deprivation • Missing markets of basic services and goods
• Intra-household differences in needs and ‘says’:– Do not always get their fair share in a household [Intra-household distribution of
wealth (discrimination)]– Children cannot make consumption decisions themselves [Lack of consumer
sovereignty]
• Discrepancy remains an issue even for highly developed economies:– Children’s needs often have a high public good character [Public/private nature of
some goods and services and their pricing]– Having enough money [financial resources] does not always imply access to goods
and services– Not having financial resources does not always imply not having access to goods and
services
EPRI
BelgiumBulgaria
Finland
Monetary poverty (NPL) and deprivation (K=3 or K=4) for all children (0-17 years in Mali
Monetary poverty ≠ deprivation
National
Urban
Rural
BamakoKidal
Gao
Tombouctou
Mopti
Ségou
Sikasso
Koulikoro
Kayes
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
50.1
15.9
60.5
9.0
73.0
59.0
72.4 69.7
56.051.9
46.749.7
46.4
23.1
53.3
10.516.0
29.132.9
49.1 48.8
85.7
44.5
28.1
Deprived (K=3) Monetary poor
Dep
riva
tion/
pove
rty
rate
in %
In conclusion
• Not everybody who is poor is deprived • Not everybody who is deprived is poor
• They mean different things• They measure different things they may identify different people
EPRI
Conceptual clarity: 3 types of poverty
• MONETARY POVERTY– Poverty measured with reference to a pre-defined
benchmark to minimum necessary income/consumption
• DEPRIVATION (POVERTY)– Poverty measured by missing essential basic needs
• SUBJECTIVE POVERTY– self-assessed poverty/wellbeing/deprivation
WELLBEING
FINANCIAL POVERTY
DEPRIVATIONPOVERTY
SUBJECTIVE POVERTY
EQUITY
Multidimensional Poverty ??
food
shelter clothing
Not having enough resources to pay for shelter, etc.
Other necessities
Defining deprivation: additional challenges
• Define “other necessities”• Select indicators and dimensions (and solve the
aggregation and weighting problems)• Relevance of needs across life-stages: life cycle approach
• Neither loose dimensionality• Nor get lost in dimensions
Other necessities
1. EU-MODA uses a ‘child-centered approach’ 2. EU-MODA adopts a ‘life-cycle approach’ with extensive
attention for overlaps in deprivations and poverty3. EU-MODA builds on existing tools of multidimensional
poverty measurement (Bristol, Oxford OPHI, Marlier & Guio)4. EU-MODA helps to create profiles of deprived children5. EU-MODA supports integrative approach to policy-making
(i.e., integration of sectors)6. EU-MODA integrates monetary poverty analysis and
deprivation analysis
EU-MODA vs. other approaches
EU-MODA: (special case of CC-MODA for low- and middle income countries)
• Data from the EU-SILC 2009: EU-27 plus NO and IS– Child-centred deprivation indicators from the Material Deprivation module– Deprivation is defined as lacking an item because the household cannot afford it or for any other reason
• Four levels of analysis– Single deprivation– Multiple deprivation– Monetary poverty– Multiple deprivation and monetary poverty overlap
• Three age-groups• National and comparative
• Three age groups– Pre-school age– School age – Aged 17-18
• National and international comparative– analyses made for separate countries– comparative analyses between countries or
groups of countries
EU-MODA: Dimensions of deprivation
Below minimum compulsory school age
(excluding those under one)
• Nutrition• Clothing• Early childhood education
and care (ECEC)• Child development• Information• Housing
School age, under 16
• Nutrition• Clothing• Educational resources• Leisure • Social • Information • Housing
Age 17-18
• Clothing• Activity• Leisure and social• Healthcare access • Information • Housing
Age 17-18: no data for BE, CZ, DK, FI, IS, NL, NO, SE, SI, UK due to high incidence of missing values
EU-MODA: Indicators of deprivation• Nutrition
– Fruit/vegetables once a day– One meal with meat once a day
• Clothing – Some new clothes– Two pairs of shoes
• ECEC / Educational resources / Economic activity– Pre-school: at least one hour a week in formal childcare – School age: School trips & Suitable place at home to study– Aged 17-18: Not in education, employment, or training (NEET)
EU-MODA: Indicators of deprivation• Child development / leisure / social
– Pre-school: Books at home; Games (outdoor, indoor); Social activities (celebrations, friends)– School-age:
• Books at home; Games (outdoor, indoor); Social activities; Regular leisure activity – Leisure dimension• Celebrations on special occasions; Having friends round to play – Social dimension
– Aged 17-18: • Social life; regular leisure activity
• Healthcare access (aged 17-18 only)– Unmet medical need– Unmet dental need
• There was at least once occasion during the last 12 months when the person really needed examination or treatment but did not have it for any reason.
EU-MODA: Indicators of deprivation• Information
– Computer – Internet – Mobile phone (aged 17-18 only)
• Housing – Overcrowding (Eurostat definition)– Water and sanitation
• The dwelling lacks at least one of the following: a bath/shower for sole use of the household; an indoor flushing toilet for sole use of the household; hot running water
– Multiple housing problems • The dwelling suffers from at least one of the following: a leaking roof, damp roof/walls/foundation,
rot in window frames or floor; there is not enough day light coming through the windows.
MODA – Multiple Overlapping Deprivation Analysis for children
EPRI
Belgium: headcount by number of simultaneous deprivations; pre-school age
Greeceheadcount by number of simultaneanous deprivations; pre-school age
Belgium Number of deprivations by migrant status; pre-school age
Overlapping deprivation in education, nutrition and clothing: Finland and Romania
The single framework: MODAMultiple Overlapping Deprivation
AnalysisEncompassing:- Single indicator analysis- Single dimension analysis- Multidimensional deprivation counting- Multidimensional overlap analysis- Multidimensional poverty indices and their decomposition- Profiling in single deprivation and dimension analysis- Profiling in multidimensional overlap analysis- Overlap analysis and distributional analysis deprivation – mon. poverty
- Focussed on children in current application but applicable to adults
EPRI
References EU-MODA:Chzhen, Y. (2013), ‘Multiple Overlapping Deprivation Analysis for the European Union (EU-MODA) – Technical Note’, UNICEF Office of Research, Florence, forthcoming.De Neubourg C. and Y. Chzhen, (2013), Monitoring Child Poverty and Well-Being in the European Union – Integrated Overlapping Deprivation and Poverty Analysis’, UNICEF Office of Research, Florence, forthcoming.CC-MODA Technical Note:De Neubourg, C., J. Chai, M. de Milliano, I. Plavgo, Z. Wei (2012), 'Cross-country MODA Study: Multiple Overlapping Deprivation Analysis (MODA) - Technical note', Working Paper 2012-05, UNICEF Office of Research, Florence.Step-by-step guidelines to MODA:De Neubourg, C., J. Chai, M. de Milliano, I. Plavgo, Z. Wei (2012), 'Step-by-Step Guidelines to the Multiple Overlapping Deprivation Analysis (MODA)', Working Paper 2012-10, UNICEF Office of Research, Florence.MODA in the context of multidimensional poverty/deprivation measures:De Neubourg, C., M. de Milliano, I. Plavgo (2013), 'Lost (in) dimensions', Working Paper - forthcoming, UNICEF Office of Research, Florence, forthcoming.MODA the basics:De Neubourg, C., J. Chai, M. de Milliano, I. Plavgo, Z.Wei (2013), ‘The Challenge of Multidimensional Child Deprivation Indicators: Reducing complexity without killing the multidimensionality; progress through Multiple Overlapping Deprivation Analysis (MODA)’, Working Paper – forthcoming, UNICEF Office of Research, Florence, forthcoming.
Web-portal 2009
• www.unicef-irc.org/MODA
www.SPRIglobal.org