Multidimensional Poverty Comparisons within Europe. Evidence from the European Community Household Panel

Abstract

This paper is a cross-sectional study on multidimensional poverty comparisons among the European Union countries, based on data provided by the European Community Household Panel (ECHP). In addition to the empirical results and the methodological problems, the study underlines the opportunities and the difficulties met while using the ECHP. The extended concept of poverty is relative and multidimensional and it reflects not only the financial aspects, but also dimensions like family composition, leisure, subjective deprivation, social participation, durable goods, housing conditions, access to education. Hence, it requires comparative assessments through ordinal measures. In order to compare the multidimensional poverty in 1999 and in a time interval (1994-1999), we have applied the Totally Fuzzy and Relative Method (TFR) in two forms: original (Cheli and Lemmi, 1995) and alternative (Cheli, D’Agostino and Filippone, 2001). The research reveals the hierarchy of countries according to different indicators of poverty. Although the rankings given by the two methods are similar in some parts, there are differences establishing the issues which arise when different features of deprivation are aggregated into a collective index. We show that the variables taken into account, the method and its interpretability, the data and the national particularities, they all have a big influence on the relative and comparative measurement of poverty.multidimensional poverty ; fuzzy set theory ; poverty comparisons ; poverty measurement ; well-being assessment