Deprivations rarely come alone. Multidimensional poverty dynamics in Europe

Despite multidimensional poverty measures becoming more popular, little is known about related dynamics at the micro-level. In this paper I propose a framework for the analysis of micro-level dynamics which are inherent to measures of multidimensional poverty. Specifically, in order to explore whether deprivations couple over time, I analyse differences in deprivation transition probabilities between multidimensionally poor and non-poor people. I argue that analysing entries and exits separately is important and that both analyses may be obtained from a single linear model per deprivation indicator. Advantages of the developed approach include that it (i) reflects and summarises relevant mechanisms, (ii) requires only short-run panel data and (iii) is suitable for monitoring purposes. Moreover, the approach may also be applied beyond multidimensional poverty analysis. I illustrate the approach using panel data of the European Union Statistics on Income and Living Conditions (EU-SILC) for more than 20 countries over 2016–2020. The presented evidence suggests that deprivations tend to couple over time. Empirical patterns are broadly time-stable, but vary across countries in magnitude. Implications include that coordinated policy programmes seem critical to overcome entrenched and prevent future deprivations.

Citation: Suppa, N. (2023). ‘Deprivations rarely come alone. Multidimensional poverty dynamics in Europe,’ OPHI Research in Progress 64a, Oxford Poverty and Human Development Initiative (OPHI), University of Oxford.

Also published in the Review of Income and Wealth:
Suppa, N. (2025). ‘Deprivations rarely come alone: Multidimensional poverty dynamics in Europe’, Review of Income and Wealth, Vol. 71, issue 4.