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Multidimensional Measures of Economic Insecurity in Spain: The Role of Aggregation and Weighting Methods

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  • Olga Cantó

    (Universidad de Alcalá and EQUALITAS)

  • Carmelo García-Pérez

    (Universidad de Alcalá)

  • Marina Romaguera de la Cruz

    (Universidad Antonio de Nebrija and EQUALITAS)

Abstract

Economic insecurity is a relevant dimension of well-being. The limited availability of subjective expectations’ surveys makes multidimensional insecurity indices based on living conditions surveys a valuable alternative. We study differences in synthetic indicators of insecurity for Spain using different methods to aggregate and weigh dimensions. We show that its evolution and distribution is robust to the aggregation procedure, even though levels do differ. All procedures present strengths and weaknesses but the counting approach has a direct economic interpretation and can better capture insecurity in the middle classes. Other aggregation methods are less transparent and give more relevance to extreme situations.

Suggested Citation

  • Olga Cantó & Carmelo García-Pérez & Marina Romaguera de la Cruz, 2021. "Multidimensional Measures of Economic Insecurity in Spain: The Role of Aggregation and Weighting Methods," Hacienda Pública Española / Review of Public Economics, IEF, vol. 238(3), pages 29-60, September.
    • Handle: RePEc:hpe:journl:y:2021:v:238:i:3:p:29-60
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Olga Cantó & Carmelo García Pérez & Marina Romaguera de la Cruz, 2023. "The Role of Tax-Benefit Systems in Shaping Economic Insecurity in the European Union," Hacienda Pública Española / Review of Public Economics, IEF, vol. 247(4), pages 7-36, December.

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    More about this item

    Keywords

    Economic insecurity; Objective and subjective measures; Polyserial correlations; Counting approach; EU-SILC.;
    All these keywords.

    JEL classification:

    • D69 - Microeconomics - - Welfare Economics - - - Other
    • I39 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Other

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