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Sour Grapes: Relative Deprivation, Adaptive Preferences and the Measurement of Poverty

Published online by Cambridge University Press:  26 June 2006

BJÖRN HALLERÖD
Affiliation:
Department of Sociology, Umeå University, S-901 87 Umeå, Sweden email: bjorn.hallerod@soc.umu.se

Abstract

One frequently used direct measure of deprivation and poverty is the objective relative deprivation index (O-RDindex), developed by Mack and Lansley (1985). One assumption underlying the O-RDindex is that respondents can distinguish between what that they cannot afford and what they do not want. This assumption contradicts the subjective usage of the concept relative deprivation (S-RD), which suggests a connection between economic circumstances, choice of reference group and consumption preferences.

The present analysis supports the S-RD assumptions. People with limited access to economic resources are more likely to say they ‘do not want’ various consumable items. The results indicate a subjective bias that leads to underestimation of the incidence of O-RD among those suffering from the greatest economic hardship. However, it is also concluded that asking people to differentiate between choice and economic constraint improves our measurement of O-RD and decreases the risk that relatively well-off individuals will score high on the O-RDindex due to peculiar prioritising of consumption. Yet it is still the case that the social mechanisms related to S-RD most probably lead to underestimation of O-RD.

Type
Article
Copyright
© 2006 Cambridge University Press

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