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The 2011 Pobal HP Deprivation Index for Small Areas (SA) Statistical Features

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Dublin, August 20 12. The 2011 Pobal HP Deprivation Index for Small Areas (SA) Statistical Features. Introduction to The 2011 Pobal HP Deprivation Index.

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introduction to the 2011 pobal hp deprivation index
Introduction to The 2011 Pobal HP Deprivation Index

This presentation highlights some of the more technical issues in the construction of the 2006 and 2011 Pobal HP Deprivation Index for Small Areas (SA) and is aimed at the more statistically-minded reader.

At the level of the individual indicator variables, the presentation includes:

The transformation of the 2006 indicator variables

The transformation of the 2011 indicator variables

A comparison of the 2006 and 2011 indicator variables

At the level of the new Pobal HP Deprivation Index, the presentation includes:

The change in the 2006-2011 Absolute Index Scores

The change in the 2006-2011 Relative Index Scores

slide3

The Underlying Dimensions of Social Disadvantage

  • Demographic Decline(predominantly rural)
    • population loss and the social and demographic effects of emigration (age dependency, low education of adult population)
  • Social Class Deprivation(applying in rural and urban areas)
    • social class composition, education, housing quality
  • Labour Market Deprivation(predominantly urban)
    • unemployment, lone parents, low skills base
slide4

Basic Model of the

Pobal HP Deprivation Index

d

Age Dependency Rate

1

Demographic

d

Population Change

Growth

2

d

Primary Education only

3

d

Third Level Education

4

d

Persons per Room

Social Class

5

Composition

d

Professional Classes

6

d

Semi- and Unskilled Classes

7

d

Lone Parents

8

Labour Market

d

Male Unemployment Rate

Situation

9

d

Female Unemployment Rate

10

the transformation of indicator variables
The Transformation of Indicator Variables

When deriving composite indicators for multi-dimensional concepts, like deprivation, it is common practice to transform the individual indicator variables to normalise their distribution prior to model estimation

The most common transformations include:

truncation - to avoid the undue influence of extreme outliers

zero-centering – to eliminate unwanted trend influences

logarithmic – to normalise a skewed distribution

The transformation of scaled variables does not affect the order of observations

The overall emphasis on deriving true measures for the composite index as a distance from the mean is thereby maintained, whilst avoiding that this is unduly influenced by a small number of extreme observations

population change sa
Population change (SA)

Transformation: truncated at ±60%

2006

Before Mean: 12.0 STD: 29.1 Skew: 4.3 Kurtosis: 34.9

After Mean: 9.9 STD: 20.1 Skew: 1.3 Kurtosis: .8

2011

Before Mean: 48.9 STD: 645.8 Skew: 34.8 Kurtosis: 1527

After Mean: 7.6 STD: 21.2 Skew: 1.0 Kurtosis: 1.0

Comparison of 2006 and 2011

r = 0.39

n = 18,246

age dependency rate sa
Age dependency Rate (SA)

Transformation: truncated at 70%

2006

Before Mean: 31.1 STD: 8.8 Skew: -0.35 Kurtosis: 3.0

After Mean: 31.1 STD: 8.7 Skew: -0.55 Kurtosis: 1.6

2011

Before Mean: 32.7 STD: 8.2 Skew: -0.71 Kurtosis: 1.9

After Mean: 32.7 STD: 8.2 Skew: -0.72 Kurtosis: 1.8

Comparison of 2006 and 2011

r = 0.75

n = 18,246

lone parent rate sa
Lone Parent Rate (SA)

Transformation: natural log

2006

Before Mean: 20.9 STD: 17.5 Skew: 1.3 Kurtosis: 1.8

After Mean: 3.3 STD: .54 Skew: 0.07 Kurtosis: -0.6

2011

Before Mean: 21.5 STD: 16.5 Skew: 1.2 Kurtosis: 1.4

After Mean: 3.3 STD: 0.51 Skew: 0.01 Kurtosis: -0.5

Comparison of 2006 and 2011

r = 0.61

n = 18,246

primary education only sa
Primary Education Only (SA)

Transformation: zero-centred – natural log

2006

Before Mean: 18.7 STD: 12.1 Skew: 0.7 Kurtosis: 0.7

After Mean: 3.6 STD: 0.3 Skew: 0.02 Kurtosis: -0.7

2011

Before Mean: 16.0 STD: 10.7 Skew: 0.8 Kurtosis: 0.5

After Mean: 3.7 STD: 0.3 Skew: 0.2 Kurtosis: -0.6

Comparison of 2006 and 2011

r = 0.90

n = 18,246

third level education sa
Third Level Education (SA)

Transformation: zero-centred – natural log

2006

Before Mean: 30.9 STD: 16.8 Skew: 0.9 Kurtosis: 0.4

After Mean: 3.6 STD: 0.4 Skew: -0.17 Kurtosis: -0.14

2011

Before Mean: 30.7 STD: 16.6 Skew: -0.85 Kurtosis: 0.47

After Mean: 3.6 STD: 0.4 Skew: -0.20 Kurtosis: -0.12

Comparison of 2006 and 2011

r = 0.90

n = 18,246

higher and lower professionals sa
Higher and Lower Professionals (SA)

Transformation: none

2006

Before Mean: 32.9 STD: 15.0 Skew: 0.4 Kurtosis: -0.04

After Mean: STD: Skew: Kurtosis:

2011

Before Mean: 34.1 STD: 15.2 Skew: 0.4 Kurtosis: -0.14

After Mean: STD: Skew: Kurtosis:

Comparison of 2006 and 2011

r = 0.89

n = 18,246

semi and unskilled social classes sa
Semi- and Unskilled Social Classes (SA)

Transformation: natural log

2006

Before Mean: 19.4 STD: 10.6 Skew: 0.8 Kurtosis: 1.2

After Mean: 3.2 STD: 0.4 Skew: -0.3 Kurtosis: 0.0

2011

Before Mean: 18.6 STD: 9.8 Skew: 0.7 Kurtosis: 0.5

After Mean: 3.2 STD: 0.4 Skew: -0.3 Kurtosis: -0.1

Comparison of 2006 and 2011

r = 0.81

n = 18,246

male unemployment rate sa
Male Unemployment rate (SA)

Transformation: natural log

2006

Before Mean: 9.1 STD: 8.4 Skew: 2.4 Kurtosis: 11.0

After Mean: 2.3 STD: 0.6 Skew: 0.2 Kurtosis: -0.1

2011

Before Mean: 23.1 STD: 12.7 Skew: 1.1 Kurtosis: 1.1

After Mean: 3.1 STD: 0.5 Skew: -0.3 Kurtosis: 0.2

Comparison of 2006 and 2011

r = 0.62

n = 18,246

female unemployment rate sa
Female Unemployment Rate (SA)

Transformation: natural log

2006

Before Mean: 8.3 STD: 7.3 Skew: 2.1 Kurtosis: 10.1

After Mean: 2.2 STD: 0.6 Skew: -0.1 Kurtosis: -0.3

2011

Before Mean: 15.5 STD: 9.5 Skew: 1.3 Kurtosis: 2.3

After Mean: 2.8 STD: 0.5 Skew: -0.3 Kurtosis: 0.3

Comparison of 2006 and 2011

r = 0.51

n = 18,246

average number of persons per room sa
Average Number of Persons per Room (SA)

Transformation: truncated – natural log

2006

Before Mean: 0.51 STD: 0.09 Skew: 1.4 Kurtosis: 6.4

After Mean: -0.69 STD: 0.16 Skew: 0.5 Kurtosis: 0.7

2011

Before Mean: 0.51 STD: 0.18 Skew: 20.2 Kurtosis: 854

After Mean: -0.70 STD: 0.17 Skew: 0.7 Kurtosis: 0.3

Comparison of 2006 and 2011

r = 0.70

n = 18,246

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