Material deprivations in poverty estimations

Abstract

Multivariate poverty measurement methods have been actively developed worldwide in recent years. Such methods include evaluation of limitations to meet basic human needs in terms of housing, clothing, footwear, education, health care, etc. In many countries non-monetary poverty lines are used as official poverty thresholds. But Russia is taking the first steps in this direction. This article presents a poverty assessment in terms of material deprivations, based on the representative survey conducted by Rosstat in 2016. Poverty analysis in terms of material deprivations shows that in Russia the most vulnerable groups are multi-child families and households of the unemployed and pensioners (especially single), as well as families living in rural areas. Such households are characterized by a higher deprivations concentration as well as a higher prevalence of separate deprivations. Measuring poverty in terms of material deprivations cannot replace the monetary poverty evaluation, but it is an important and additional part of poverty assessment. Households of single pensioners have a higher deprivations concentration but they are not poor in terms of absolute income poverty (due to introduction of supplementary pension payments which make their pensions higher than regional poverty thresholds). That means that poverty measurement should consist of a set of different methods that would give a more accurate estimation of poverty and highlight the poorest groups of the population which should be focus of social protection.