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Measuring Economic Insecurity Using a Counting Approach. An Application to Three EU Countries

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  • Marina Romaguera‐de‐la‐Cruz

Abstract

In this paper, we propose the use of a multidimensional approach to the measurement of economic insecurity in three European countries. We combine six different unidimensional indicators proxying the subjective and objective determinants of economic insecurity into a single index based on a counting approach method, which allows us to measure the incidence and the intensity of the phenomenon. Using longitudinal data from the European Union Statistics on Income and Living Conditions (EU‐SILC) from 2008 to 2016, we find that the incidence of insecurity falls as income grows, being significantly present in middle‐income households both in Spain and France but not in Sweden. Interestingly, in all three countries, the contribution of different dimensions to insecurity changes as household income grows, while for all income levels a higher education and being employed in a non‐fixed term contract are strongly related to a lower probability of being economically insecure.

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  • Marina Romaguera‐de‐la‐Cruz, 2020. "Measuring Economic Insecurity Using a Counting Approach. An Application to Three EU Countries," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 66(3), pages 558-583, September.
    • Handle: RePEc:bla:revinw:v:66:y:2020:i:3:p:558-583
    DOI: 10.1111/roiw.12428
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    Cited by:

    1. Joaquín Prieto, 2021. "A multidimensional approach to measuring economic insecurity: The case of Chile," Working Papers 591, ECINEQ, Society for the Study of Economic Inequality.
    2. Paul Fiedler, 2021. "Worrying about Work? Disentangling the Relationship between Economic Insecurity and Mental Health," SOEPpapers on Multidisciplinary Panel Data Research 1145, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Belmonte, A & Pickard, H, 2022. "Safe at Last? LATE Effects of a Mass Immunization Campaign on Households’ Economic Insecurity," CAGE Online Working Paper Series 604, Competitive Advantage in the Global Economy (CAGE).
    4. Prieto, Joaquin, 2021. "A multidimensional approach to measuring economic insecurity: the case of Chile," LSE Research Online Documents on Economics 112490, London School of Economics and Political Science, LSE Library.
    5. Joaquín Prieto, 2022. "A Multidimensional Approach to Measuring Economic Insecurity: The Case of Chile," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(2), pages 823-855, September.
    6. Prieto Suarez, Joaquin, 2022. "A multidimensional approach to measuring economic insecurity: the case of Chile," LSE Research Online Documents on Economics 114623, London School of Economics and Political Science, LSE Library.
    7. Dmitry Petrov & Marina Romaguera-de-la-Cruz, 2023. "Measuring economic insecurity with a joint income-wealth approach," Working Papers 637, ECINEQ, Society for the Study of Economic Inequality.
    8. Costanzo Ranci & Jason Beckfield & Laura Bernardi & Andrea Parma, 2021. "New Measures of Economic Insecurity Reveal its Expansion Into EU Middle Classes and Welfare States," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(2), pages 539-562, December.

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