MULTIDIMENSIONAL INDICES OF HOUSING DEPRIVATION WITH APPLICATION TO SPAIN

Luis Ayala and Carolina Navarro
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Carolina Navarro: Universidad Nacional de Educación a Distancia

Working Papers from Instituto de Estudios Fiscales

Abstract: . The main aim of this paper is to define a multidimensional index of housing deprivation and identify the main determining characteristics of this phenomenon, using Spain as a point of reference. The paper grounds on the notion of housing deprivation as an insufficiency in the basic functioning of this commodity and uses a latent variable model that attempts to overcome some of the traditional difficulties encountered in multidimensional deprivation studies. The construction of a latent structure model has allowed a set of partial housing deprivation indices to be grouped together under a single index. It has also enabled each individual to be assigned to a different class depending on the level and type of deprivation. The results show that the vector of observed variables (having hot running water, heating, a leaky roof, damp walls or floor, rot in window frames or floors, and overcrowding) and the correlations among such variables can be explained by a single latent variable. Results also show that housing deprivation is not distributed homogenously among the population..

Keywords: housing; deprivation; poverty; latent class models. (search for similar items in EconPapers)
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