The impact of macro-economic circumstances and social protection expenditure on economic deprivation in 25 European countries, 2007-2011
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SourceSocial Indicators Research, 115, 3, (2014), pp. 1179-1203
Article / Letter to editor
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SW OZ NISCO SOC
SW OZ RSCR SOC
Social Indicators Research
SubjectInequality Cohesion Rationalization; Ongelijkheid Cohesie Rationalisatie
In this study, we investigate to what extent macro-economic circumstances and social protection expenditure affect economic deprivation. We use three items from round five of the European Social Survey (2010-2011) to construct our latent outcome variable, which we label economic deprivation in the 3 years before 2010-2011. The results of our linear multilevel regression analyses indicate that in countries that perform worse economically, individual experiences of economic deprivation are more prevalent: the stronger the rise in the unemployment rate and the lower a country's wealth, the more economic deprivation individuals experience. We also find that in countries with high levels of social protection, people experience less economic deprivation as compared to countries with low levels of social protection. In turn, adverse economic conditions in a country temper these positive outcomes of social welfare arrangements. Finally, our study reveals that the strength of the relationship between a low income and economic deprivation strongly varies according to the economic circumstances in a country and the generosity of the welfare state.
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