The Coupling of Disadvantages: Material Poverty and Multiple Deprivation in Europe before and after the Great Recession

Abstract

This paper examines the impact of the Great Recession on material poverty and multiple deprivation in Europe. Applying as its conceptual framework Poverty as Capability Deprivation (Hick 2014), which is one specification of Amartya Sen's capability approach, and employing the Alkire-Foster adjusted headcount measure, the paper draws on data from the EU Survey of Income and Living Conditions to present a multidimensional poverty analysis of 24 EU Member States at four time points: 2005, 2008, 2011 and 2013. The analysis shows that the pre-crisis period was associated with substantial reductions in multidimensional poverty in Europe, with the largest reductions occurring in the poorest Member States. However, the Southern European countries largely failed to benefit from these pre-crisis poverty reductions and, when the crisis hit, experienced the largest increases in multidimensional poverty in Europe. These patterns reflect a changing geography of poverty within the European Union, increasingly concentrated away from the East, and towards the South.