Multidimensional housing deprivation indices with application to Spain

Abstract

The main aim of this paper is to defining a multidimensional housing deprivation index and identifying the main determining characteristics of this phenomenon, using Spain as reference. A latent variable model is used in order to overcome some of the traditional difficulties encountered in multidimensional deprivation studies. The construction of a latent structure model has allowed a set of partial housing deprivation indices to be grouped together under a single index. It has also enabled each individual to be assigned to a different class depending on the level and type of deprivation. Results show that the vector of observed variables (having hot running water, heating, a leaky roof, damp walls or floor, rot in window frames and floors, and overcrowding) and the correlations among such variables can be explained by a single latent variable. There are also specific characteristics that differentiate the population affected by housing deprivation.