GEOG2003: Methods in Human Geography: Wealth, Poverty, Inequality and Deprivation Indices

1. GEOG2003: Methods in Human Geography:Wealth, Poverty, Inequality and Deprivation Indices J�rgen Essletzbichler (j.essletzbichler@geog.ucl.ac.uk)

2. Overview Wealth, poverty and inequality in London How can we measure it? No Census information on income Index of deprivation What might be some of the causes for increasing levels of inequality and poverty? How does it relate to other indicators?

3. Wealth, poverty & inequality The BIG issue in some senses Research to understand patterns of social difference and trying to explain the processes driving inequalities Much of government intervention across all manner of policy areas (health, taxation, education, criminal justice) is about dealing with impacts of inequalities and trying to reduce poverty in the future Ideological issues on the inevitability of inequality in society. Is it necessary, even beneficial, in a capitalist system to differentiate people? Isn�t it right that more talented, hardworking people are entitled to be richer? Is it the case that more hardworking people are richer (think about the illegal immigrants working 14 hour days)? Should society let less able people fail? But how far is it really a meritocracy? Hot political issue Related to all other kinds of issues (health, education, ethnicity, housing, �)

4. London versus other regions

5. London compared to other regions

8. Wealth & poverty in London Focus on London 2003, �Whilst London stands out as one of the most successful regions in the UK, it is also a city divided between the extremes of wealth creation and success, and deprivation and social exclusion. This is reflected in the high proportion of wards (20 per cent) which are in the 10 per cent most deprived wards in England.� What are the patterns of deprivation across London? Is inequality increasing? Greater social polarisation? Is this reflected spatially? What are the implications? What can be done? How does London compare to the rest of the UK? Is it a special case? Focus on London 2003, �Unemployment in London is higher than the national average. The Inner London rate is twice the national average and rates are particularly high among London�s minority ethnic groups.� But large variation among ethnic groups, inner-outer London, � WHY?

10. But: High levels of inequality within London

11. Earning inequality in London

13. Explanation: Changes in occupational structure?

14. Explanation: Higher earnings group expands employment share?

16. Problem: Low educational attainment scores

17. Ethnic differences in income

18. Problem: Unequal qualification?

21. Poverty in London

22. Problem: Census does not ask these questions Requires proxy measures Car ownership Socio-economic classification But also Index of deprivation

25. Measuring wealth and poverty Many practical difficulties in accurately measuring the wealth / poverty of individual, households and areas Material poverty and wealth in terms of income is known for most people (tax records, benefit claimant records) Can collapse the other 5 topics into broader deprivation explanation. for example, health inequalities are often believed to be significant element in overall deprivation Background reading: Focus on London, 2003, chapter 8 �living in London� Lee P, (1999) "Where are the deprived? Measuring deprivation in cities and regions" in Dorling D, Simpson S, (eds) Statistics in Society: The Arithmetic of Politics (Arnold, London), pp. 172-180. [Senate House Library, SOCIOLOGY 6th Flr, K45 Sta]

26. Defining deprivation Deprivation is a complex phenomena and it is difficult to conceptualise and define Deprivation is said to be a �latent construct� (i.e. it cannot be measured directly) Bound up with ideas of poverty, inequality, social exclusion and lack of opportunities Poverty - low income or lack of material resources Is this absolute or relative? Deprivation is � � a state of observable and demonstrable disadvantage relative to the local community or wider society or nation to which an individual, family or group belongs.� (Townsend 1987) Deprivation can be said to have different dimensions - material, education, health, access, housing, job, etc

27. Deprivation indices Poverty and inequality are major concerns of governments and other public bodies Much of public spending (billions of pounds) is targeted, based on assessed needs of residents in an area Need obviously varies across space, but it is complex variation and at different scales What does it mean to be deprived? Is this subjective? Deprivation indices are applied tools for measuring this variation in a quantifiable and comparable fashion In the last 20 years a large number of different deprivation indices have been design and used

28. Deprivation indices Deprivation indices have been based on composite of census variables so as to �cover� different dimensions of deprivation Controversial because they create �winners� and �losers�. There are problems in creating a �fair� deprivation index that works well for the whole country. Town versus rural; bias to big cities; London-specific problems Is it correct to classify areas as being deprived? What are some of the drawbacks? What happens if we define poverty, deprivation, � as �problem� that has to be solved? What does it mean for those classified as poor/deprived, a �problem�? Issues of complexity versus transparency There is no perfect deprivation indicator Development in indices Jarman UPA Index (1983) Townsend Index (1986) Index of Local Conditions (ILC) (1995) Indices of Multiple Deprivation (IMD) (2000) current policy tool can see this on the ONS Neighbourhood Statistics website

29. What does a deprivation index look like? Townsend deprivation score for wards http://census.mimas.ac.uk/db/census91/dep/townsend/

30. Indices of Multiple Deprivation IMD2004 is current deprivation indicator used by govt. 38 individual indicator variables in 7 deprivation domains only 1 of the indicators comes from the census (1991 census variable on limiting long-term illness) data drawn from govt. administrative databases for info see, http://www.odpm.gov.uk/stellent/groups/odpm_urbanpolicy/documents/page/odpm_urbpol_029534.pdf

32. Social exclusion, deprivation And now a look at social deprivation. As you can see some of the poorest boroughs in the country are among the areas which experience the fastest rise in house prices. Social conflict seems almost inevitable in the areas where rich and poor live right next to each other. What�s interesting is that while London overall has become more diverse (rich, white people are not concentrated in Kensington and Chelsea anymore), the micro-geography has become much more segregated. Now we see rich families in loft conversion living right next to poor families in council estates. ...And now a look at social deprivation. As you can see some of the poorest boroughs in the country are among the areas which experience the fastest rise in house prices. Social conflict seems almost inevitable in the areas where rich and poor live right next to each other. What�s interesting is that while London overall has become more diverse (rich, white people are not concentrated in Kensington and Chelsea anymore), the micro-geography has become much more segregated. Now we see rich families in loft conversion living right next to poor families in council estates. ...

35. Multiple Index of Deprivation 2004, England Districts

37. Index of Multiple Deprivation, 2004, SOA level

43. Associated Problems: Health

44. Further information on deprivation indicators Senior M. (2002) �Deprivation indicators�. In Rees P., Martin D. and Williamson P. (eds) The Census Data System,Wiley, pages 123-137. (GEOGRAPHY J 50 REE) Lee P. (1999) �Where are the deprived? Measuring deprivation in cities and regions�. In Dorling D. and Simpson S. (eds) Statistics in Society: The Arithmetic of Politics, Arnold, London, chapter 21, pages 172-180. (Senate House Library, SOCIOLOGY 6th Flr, K45 Sta) The London index of deprivation: an alternative to IMD2000, a consultation document, July 2002 www.casa.ucl.ac.uk/2003/londonindexofdeprivation.pdf