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Cost of Social Exclusion. Salla Ikäheimo 21.3.2014. Definition of Social exclusion :

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cost of social exclusion
Cost of Social Exclusion

Salla Ikäheimo



Definition of Social exclusion:

“Social exclusion is a complex and multi-dimensional process. It involves the lack or denial of resources, rights, goods and services, and the inability to participate in the normal relationships and activities, available to the majority of people in a 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 et al. 2007)


Who is sociallyexcluded?

  • Conseptual definition

A person whocannotparticipate in society as expected, and whoexperiensesproblems in differentareas of life.

  • Operational definition

16-29 yearsold person whohas no moreeducationthancomprehensiveschool, who is notcurrentlystuding, working, takingcare of his/herownchildrenor is notserving in military

The idea of a person whofeelshimselfsociallyexcluded is importanttoo, but the study is aboutcosts to society and thereforewecanignorethosewhofrom the point of view of a societyfunction as notexcluded.

systematic literature review

The method is usedmainly in medicine to combinedifferentstudies to haveevenmorereliableresultthanoneexperiment

  • The idea:
    • Define the researchquestion, strategy to find the literature and exclusion and inclusioncriterias
    • Searchallavailableliterature of the subjectusing the strategy
    • Select allstudiesthatmeet the criteria
    • Evaluateselectedliteratureand merge the information
    • Meta-analysis (confidenceintervals etc.)

- In my study it is impossible to make meta-analysisbecauseto be able to do that, youhave to have studies quite similar so that you can compare them. Even the definition for social exclusionvaries in differentcases and the studieshave a little in common.


(Malmivaara 2008)

strategy to find literature

(Social exclusion) AND (Costs)

  • (Youth at risk) AND (Costs)
  • (Unemployment) AND (Costs)
  • (Groupspeoplethatare in highrisk to becomesociallyexcludedoroutcomesfrom social exclusion) AND (Costs) AND (Youth)

All of the termsinclude as muchsynonymesthatwerefound (Picture)

inclusion and exclusion criteria

Costs for sociallyexcludedorsomegroup at riskarecalculated

  • Costsare for society
  • Peer review
  • Follow up study or a systematic literature review (with at least one follow up study)
  • Adolecents or at least not about elderly
  • From developed country
some numbers


  • Aftertakingdoubles out 2365articles
  • 70articlesfrom Finland
  • Greyliteraturefrommostpromisingsources66 articles (just in case somethingabsolutelyawesome is found- whichwasnot the case)
  • 2501 articles and in the end15articlesmet the criteria.
  • 9From US and 6from UK – nonefrom Finland

Therewasnot a single articlethatwouldbeexactlyabouthowmuchsociallyexcluded person costs for the society

    • some of the studieswerefoundthattried to answer the question, butthosestudieswerenotfollowupstudies.
  • Articlesfoundcanbedivided into 5 groups:


  • Specialeducation/servicesrelated to education
  • Health care
    • Basic healthcare
    • Mentalhealth
  • Social services
  • Foster and residentialcare
  • Alcohol and Drugrelatedproblems
  • Social securitybenefits
  • Lostproduction
  • Justicesystem and criminality

What is next/going on now?

- Evaluatestudies (

  • I am trying to formmoregroups (method, follow-uptime, bias…) to makeiteasier to write a finalreport. Grouping helps me to understand the similarities between such a different studies. Alsobecause in this case I cannotusemeta-analysis, comparingstudiesis important.
  • In the end I hope I wouldhave a nicereport of howitwouldbeoptimal to calculate the costs for sociallyexcludedadolesents.
empirical study

I haveaccess to data of basicservicesused in 2006-2011. Unitcostsarealreadycalculated.

  • The firstproblem is how to identifysociallyexcludedadolecentsfrom the data
    • There is a goodarticleaboutthis:

”An individuali is sociallyexcluded in semesteraifhe/she is currentlydisabled, out of workorinactive, with a probability of entering into employmentoreducationduring the nextyearsmallerthan a positivenumberψ, giventhat business cycleconditionsarenormal”

(Raaum et al. 2009)

  • The secondquestion is how to findsomekind of causaleffectsothat the study is not just descriptive
    • From the literaturereviewtherearesomeideas, but of course the difference of the data makesit a littlehard to do the same.
data now


    • Highesteducation
    • Socioeconomic status (=main activity) butonly for thosewhohaverecievedbenefits
    • Social securitybenefits
  • So I canidentifysociallyexcluded person with:
    • Highesteducationbeing no higherthancomprehensiveschool
    • Recieving Social securitybenefit
    • Unemployed
    • Notrecievingmaternalbenefits
  • Differentgroups of sociallyexcludedadolescents
    • Eg. Chronically excluded, survivors…

BUT no adolescentsunder 18

historyonlyfrom 2006-2011

onlydescriptiveresearch – I cannotfindanyway to findcausality in thissetting

Data now
possible data later


  • Highesteducation
  • Main activity
  • Monthly data of employment/unemployment
  • Social securitybenefits
  • Income
  • Family
  • The country whereonewasborn
  • Accommodation
  • Studies
    • Alsoifnotcompletededucation
    • Ifnotcompleted, whattheystarted to doafterleaving the school
  • Specialeducation
  • Parents
    • Highesteducation
    • Employed/unemployed
    • Socioeconomicstatus
  • All variables from the year person turns 16
  • Not only 16-29 years but also older if possible
Possible data later

Levitas, Pantazis Ruth Christina, EldinFahmy, David Gordon, Eva Lloyd, and Demi Patsios. THE MULTI-DIMENSIONAL ANALYSIS OF SOCIAL EXCLUSION. 2007.

Malmivaara, Antti. Järjestelmällinen kirjallisuuskatsaus vaikuttavuudesta – Apuväline terveyden- ja sosiaalihuollon ammattilaisille, tutkijoille ja päättäjille. Sosiaalilääketieteellinen aikakauslehti 2008: 45 273-278. 2008.

Raaum, Oddbjørn, Jon Rogstad, Knut Røed, Lars Westlie, OddbjørnRaaum, Jon Rogstad, Knut Røed, and Lars Westlie. Young and out: An application of a prospects-based concept of social exclusion. The Journal of Socio-Economics 38 (1) (Jan-1): 173-87. 2009.