Poverty measurement

Inequality has reached extreme proportions in many countries - but, according to campaigners, the problem is far worse than anyone has understood it until now. This is because all studies exploring economic inequality have systematically underestimated the wealth and income enjoyed by the world's wealthiest individuals.

Eight of the world's most respected economists specialising in economic inequality were interviewed for the study. They all confirmed a huge under-reporting problem in this area.

In this consultation response, Professor David Gordon and the PSE: UK research team recommend that a national ‘service deprivation’ measure is produced based on a social survey question module. Subsequently, the value of this measure can be estimated for Local Authorities (and other areas) by combining relevant census/administrative statistics and micro-survey data using small area estimation models.

This report describes the results of a series of fourteen focus groups conducted as part of the development work for the PSE: UK research that explored perceptions of poverty, social exclusion and living standards in the UK today. The focus group research uncovered little evidence of consistent variation in perceptions of ‘necessities of life’ across social groups, for example on the basis of household type, ethnicity or income status. The paper explores definitional issues with regards to the term ‘necessity’ and the extent to which contextual information is used in making decisions. It also discusses questions as to the extent to which the availability of public goods and services affects participants’ decisions.

This working paper presents the opinions of the general public as to which items and activities are believed necessary in Northern Ireland today to enjoy a decent standard of living. It is based on an analysis of responses to a module in the Omnibus survey conducted in Northern Ireland in 2011. The responses are explored by key socio-demographic and economic variables to ascertain the extent of agreement among the general public as to their importance. While there are some differences of opinion between different groups in society, in general a very high degree of consensus on the necessities is evident. The survey findings confirm that the items and activities that are essential to achieve an acceptable standard of living in our society today and which all adults should be able to afford and not have to do without are both material and social in nature.