Multidimensional deprivation in heterogeneous rural areas

Abstract

We analyse the changes in multidimensional deprivation in very heterogeneous rural areas in Spain during the economic crisis using latent class models. Decomposition analyses of material deprivation are conducted by considering intra-area and inter-area components. Counterfactual distributions are implemented to identify the factors behind the change in deprivation in the different areas. We find that the economic crisis negatively affected direct indicators of the living standards in rural areas. Our results also belie the common stereotype that the greatest incidence of monetary poverty in rural areas is offset by better living conditions. The role of spatial areas in explaining deprivation is tested by using multigroup latent class models and a wide range of differences appears when specific rural areas are studied going beyond the usual dilemma between rural and urban areas.