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Measurement and Change in Deprivation and Exclusion in Australia Peter Saunders and Melissa Wong Social Policy Research Centre, UNSW Presented to the Second Townsend Memorial Conference, University of Bristol, 22-23 January 2011 Outline of Presentation Limitations of poverty research in Australia Deprivation and social exclusion Towards new indicators of disadvantage: Project background and aims Measuring deprivation and social exclusion Some results from the 2006 and 2010 surveys Conclusions Poverty: Why We Need a New Approach No agreement about where to set the poverty line Poverty line sensitive to shifts (Saunders and Hill, 2008) Household income data not reliable ‘…household income is not a good indicator of the total economic resources available to many people with very low recorded incomes...’ (ABS, 2006) Poverty is more than just a lack of income - it is often multi-dimensional in terms of causes and consequences The failure to provide such foundations in poverty line studies has exposed them for being out of touch with the lived realities of poverty (Lister, 2004) Failure to indicate that the actual living conditions of those identified as poor are synonymous with poverty (Whiteford, 1997) Poverty and Deprivation ‘Individuals, families and groups in the population can be said to be in poverty when they lack the resources to obtain the types of diet, participate in activities, and have the living conditions and amenities which are customary, or at least widely encouraged or approved, in the societies to which they belong. Their resources are so seriously below those commanded by the average individual or family that they are, in effect, excluded from ordinary living patterns and activities’ (Townsend, 1979) ‘…an enforced lack of socially perceived necessities (or essentials)’ (Mack and Lansley, 1985) Poverty and Social Exclusion ‘Social exclusion is a complex and multi-dimensional process. It involves the lack of denial of resources, rights, good and services, and the inability to participate in the normal relationships and activities, available to the majority of the people in society, whether in economic, social, cultural, or political arenas. It affects both the quality of life of individuals and the equity and cohesion of society as a whole’ (Levitas, 2007). ‘An individual who is socially excluded if he or she does not participate in key activities in the society in which he or she lives’ (Burchardt, Le Grand and Piachaud, 2002) Towards New Indicators of Disadvantage Project background and aims: 2006 2006 Left Out and Missing Out Study Two year study grant funded by the Australian Research Council (ARC) Linkage grant Industry partners: ACOSS, Mission Australia, Brotherhood of St Laurence and Anglicare Sydney Main goal: To identify what constitutes the main elements of a minimally decent lifestyle in contemporary Australia and assess who is ‘missing out’ and ‘left out’ First of its kind to apply a deprivation approach in Australia and the first to present a comprehensive national picture of social exclusion Stage 1 (mid-2005): focus group discussions with community sector agency clients and staff Stage 2 (early-2006): The Community Understanding of Poverty and Social Exclusion (CUPSE) survey sent out to 6,000 adult (18+) Australians – n = 2,704; response rate = 46.9% Two welfare service client surveys in 2006 (n=673) and 2008 (n=1,237); based on a truncated version of CUPSE Towards New Indicators of Disadvantage Project background and aims: 2010 2010 Social Disadvantage and Economic Recession – Promoting Inclusion and Combating Deprivation Two year study grant funded by the Australian Research Council (ARC) Linkage grant Industry partners: Anglicare Australia, ACOSS, The Benevolent Society, Mission Australia, Social Inclusion Unit (Australia, South Australia and Tasmania), St Vincent de Paul Society Main focus: to examine the impact of global financial crisis on Australia and to examine the robustness of the methodologies involved First study in Australia to explore the dynamics of social disadvantage The Poverty and Exclusion in Modern Australia (PEMA) survey : - same sampling frame as CUPSE; n= 2,644; response rate = 46.1% The PEMA follow-up survey: - re-surveying of 1,000 CUPSE respondents; n=533; response rate = 60.2% PLEASE NOTE: PEMA data are (very) new and results are preliminary Identifying the Essentials of Life and Deprivation Is it essential? Yes No Do you have it? Yes No Is this because you cannot afford it? THE ESSENTIALS OF LIFE Yes DEPRIVATION No Support for Items being Essential: 2006 and 2010 The 24 Essential Items 1) 2) 3) Warm clothes and bedding, if it’s cold Medical treatment if needed Able to buy medicines prescribed by a doctor 4) A substantial meal at least once a day 5) Dental treatment if needed 6) A decent and secure home 7) Children can participate in school activities and outings 8) A yearly dental check-up for children 9) A hobby or leisure activity for children 10) Up to date schoolbooks and new school clothes 11) A roof and gutters that do not leak 12) Secure locks on doors and windows 13) 14) 15) 16) 17) 18) 19) 20) 21) 22) 23) 24) Regular social contact with other people Furniture in reasonable condition Heating in at least one room of the house Up to $500 in savings for an emergency A separate bed for each child A washing machine Home contents insurance Presents for family or friends at least once a year Computer skills Comprehensive motor vehicle insurance A telephone A week’s holiday away from home each year Deprivation Rates in 2006 and 2010 A decent and secure home A substantial meal at least once a day Up to $500 in savings for emergency Separate bed for each child Medical treatment if needed Able to buy prescribed medicines Dental treatment if needed Dental check-up for children A week's holiday away each year Presents for family / friends each year School activities / outings for children 0 5 10 15 % 2006 2010 20 25 Social Exclusion Domains Disengagement (9 indicators) Service Exclusion (10 indicators) Economic Exclusion (8 indicators) No regular social contact with other people No medical treatment if needed Does not have $500 in savings for use in an emergency Did not participate in any community activities in last 12 months No access to a local doctor or hospital Had to pawn or sell something, or borrow money in the last 12 months Does not have a social life No access to dental treatment if needed Could not raise $2,000 in a week No annual week’s holiday away from home No access to a bulk-billing doctor Does not have more than $50,000 worth of assets Children do not participate in school outings or activities [those with school-age children only] No access to mental health services Has not spent $100 on a ‘special treat’ for myself in last 12 months No hobby or leisure activity for children [those with children only] No child care for working parents [workingage parents only] Does not have enough to get by on Couldn’t get to an important event because of lack of transport in last 12 months No aged care for frail older people [people aged 70+ only] Is currently unemployed or looking for work No disability support services when needed Lives in a jobless household Could not go out with friends and pay my way in last 12 months Unable to attend wedding or funeral in last 12 months No access to a bank or building society Couldn’t keep up with payments for water, electricity, gas or telephone in last 12 months Social Exclusion Indicators Did not participate in community activities Does not have a social life No week's holiday away from home each year Could not go out with friends and pay their way No medical treatment if needed No dental treatment if needed No access to a bank or building society Couldn't make electricity, water, gas or telephone payments Does not have $500 in emergency savings Could not raise $2,000 in a week Does not have enough to get by on Lives in a jobless household 0 2006 2010 2006 deep exclusion 20 40 2010 deep exclusion 60 80 100 Overlaps between Poverty, Deprivation and Social Exclusion Poverty rate – 50 % median equivalised househould income Deprivation – 3 or more conditions of deprivation Social exclusion – 7 or more exclusion indicators Overlaps between Poverty, Deprivation and Social Exclusion Community Sample 2006 Overlaps between Poverty, Deprivation and Social Exclusion Client Sample 2006 In Conclusion New series of indicators of disadvantage for the Australian context Deprivation method is capable of generating robust and plausible results Following the global financial crisis, there has been a fall in deprivation and social exclusion rates in Australia However, there is still a problem concerning deep exclusion that requires greater attention Overlaps between poverty, deprivation and social exclusion greater for welfare service clients Age Composition Comparisons Deprivation Rates by the Presence of Children A decent and secure home A substantial meal at least once a day Up to $500 in savings for emergency Separate bed for each child Medical treatment if needed Able to buy prescribed medicines Dental treatment if needed Dental check-up for children A week's holiday away each year Presents for family / friends each year School activities / outings for children 0 2006 No child present 5 2006 Child present 10 % 15 2010 No child present 20 2010 Child present 25 30 Sensitivity analysis: Inferred Deprivation Inverse ownership rate - does not have Deprivation rate - does not have and cannot afford Inferred deprivation rate - does not have but regards as essential Warm clothes and bedding, if it's cold 0.4 0.3 0.4 Medical treatment if needed 3.1 1.5 3.1 Able to buy medicines prescribed by a doctor 4.1 2.9 3.9 A substantial meal at least once a day 1.4 0.8 1.2 Children can participate in school activities and outings 28.4 (3.6) 2.6 (1.3) 26.1 (3.4) A yearly dental check-up for children 25.0 (5.4) 7.0 (3.3) 21.9 (5.0) A hobby or leisure activity for children 25.3 (3.9) 4.6 (2.1) 21.3 (3.3) A roof and gutters that do not leak 9.2 4.7 7.0 Secure locks on doors and windows 11.4 4.3 8.0 Regular social contact with other people 13.0 4.7 10.5 Furniture in reasonable condition 2.3 2.1 1.7 Essential items Heating in at least one room of the house 7.7 2.1 A week's holiday away from home each year 39.2 18.5 Note: (a) Figures in brackets assume that households without children do not lack, or are deprived of, child items. 2.7 16.9