The Dynamics of Deprivation: the relationship between income and material deprivation over time

Abstract

Using data from two sources - the Family and Children Survey (FACS) and the British Household Panel Survey (BHPS) - we construct indices of living standards based on information about the availability of consumer durables, living conditions and financial position. We investigate the associations between these indicators and household income, focussing on the effects at low income. We distinguish between a persistent underlying relationship between income and living standards, and the direct effect that changes in income can have on living standards.