Is material deprivation decreasing in Germany? A trend analysis using PASS data from 2006 to 2013.

Area of Science:

• Social Sciences
• Economics
• Sociology

Background:

• Germany observed rising real incomes and employment from 2006-2013.
• Absolute income poverty, measured by the at-risk-of-poverty rate, declined during this period.

Purpose of the Study:

• To analyze trends in material deprivation in Germany using panel data.
• To investigate measurement challenges and biases in assessing material deprivation.
• To compare material deprivation trends with absolute income poverty.

Main Methods:

• Utilized seven waves of the German Panel Study Labor Market and Social Security (PASS) from 2006-2013.
• Employed regression models to analyze material deprivation indices.
• Controlled for measurement errors and selection biases.

Main Results:

• A significant downward trend in material deprivation was observed for the German population.
• Individuals receiving basic income support also showed a downward trend in reported deprivation.
• Measurement equivalence varied for supported individuals based on survey mode and panel experience.

Conclusions:

• Material deprivation measures may act like absolute income poverty indicators if not updated for societal living standards.
• Outdated measurement lists can lead to an overestimation of material deprivation.
• Further research is needed on measurement equivalence in specific subgroups.