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Multidimensional deprivation in heterogeneous rural areas

Working Paper 2020-560


We analyse the changes in multidimensional deprivation in very heterogeneous rural areas in Spain during the 2008 economic crisis using multigroup latent class models. 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. A wide range of differences appears when specific rural areas are studied going beyond the usual dilemma between rural and urban areas. Our results also belie the common stereotype that the greatest incidence of monetary poverty in rural areas is offset by better living conditions.

Authors: Luis Ayala, Antonio Jurado, Jesús Pérez-Mayo.

Keywords: rural areas, multidimensional deprivation, latent class model, EU-SILC
JEL: I32, R13