Income poverty and material deprivation in European countries

Abstract

Since 2009, the European Union (EU) portfolio of commonly agreed social in-dicators includes measures of material deprivation. The rationale for this inclu-sion is that if purely income-based indicators of poverty and inequality are es-sential, they are nevertheless not sufficient to satisfactorily reflect the diversity of living conditions in the EU, especially since the 2004 and 2007 enlarge-ments. The paper analyses the relationship between income poverty and mate-rial deprivation in 25 European countries (24 EU Member States plus Norway) and aims at identifying the most important factors that determine the risk of being income poor and/or materially deprived. It is based on the 2007 cross-sectional data of the EU Statistics on Income and Living Conditions (EU-SILC) users? data base.