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This paper assesses to what extent differences in the characteristics of individuals (micro‐level perspective) and country‐specific factors (macro‐level perspective) can explain country differences with respect to material deprivation levels. Thus, our work aims to simultaneously consider the macro dimension and the predominantly individually‐oriented study field of material deprivation using multilevel techniques. We make use of the European Union Statistics on Income and Living Conditions. Our results show that country‐specific factors seem to be much more relevant than individual effects in explaining country differences in material deprivation. We estimate that the introduction of country‐specific factors reduces the proportion of total variance due to between‐country differences in deprivation by 72.7 percent, while individual‐level variables reduce this proportion by only 9.4 percent. We also show, through interaction variables, that the effect of sociodemographic characteristics can be shaped by institutional and structural factors, especially by the level of GDP.

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In this paper, we examine the ability of social benefits to soften the level of child deprivation.We construct a dedicated child deprivation indicator which allows us to better capture children's circumstances and examine the effect on it of contextual and sociodemographic factors jointly through multilevel models. We contribute to the scarce literature on the effects of social spending on child-specific deprivation from a cross-national perspective. We separately estimate the effect of each social benefit function on child deprivation to evaluate the impact of those benefit functions directly targeted at children and those benefit functions with no explicit intention of child deprivation protection. Our findings suggest that in order to explain differences across European countries in the level of child deprivation, country-level determinants are crucial. Moreover, social benefits play a key role that remains even when controlling for country-level determinants. An additional finding is that the most effective social benefit functions are not necessarily those targeted at children.