Introduction

This chapter uses the 26 items that were identified in the previous chapter as being essential by a majority to provide the first comprehensive, national picture of deprivation in Australia. Results are presented and analysed in detail for the 2006 community sample and a selection of findings from the 2006 and 2008 welfare service client samples are also examined. The basic results are presented on a raw (unweighted) basis and after applying population age weights to adjust for the unrepresentative age profile of the community sample. In general, reweighting the data in this way has little impact on the results and for this reason, most of the analysis focuses solely on the unweighted data. No attempt has been made to re-weight the two sets of client sample data to make them more directly comparable with each other (or with the community sample), as it is not possible to do this on a consistent basis across the two years.

Several extensions to the basic results are then examined. The first involves varying the filters used to identify deprivation itself. This is followed by an examination of multiple deprivation and by using deprivation index scores to compare the severity of deprivation between different socioeconomic groups. These latter comparisons raise questions about which weighting scheme should be used to derive summary deprivation scores, leading to an examination of the sensitivity of results to the use of alternative weighting schemes.

Tests of statistical reliability and validity are then conducted to see if the number of essential items can be reduced, and factor analysis is used to examine how the deprivation items link together. The relevance and value of the deprivation estimates is then illustrated by using them to compare the adequacy of the incomes received by different groups, including those on low wages or in receipt of different types of social security payment. These results highlight the important role that deprivation studies can play in informing and monitoring income support and related policies.

Identifying deprivation

Deprivation exists when people are prevented from obtaining essential items because they cannot afford them. As Figure 4.1 in Chapter Four indicates, the role of resource constraints is captured by asking people who do not have each item whether or not this reflects a lack of affordability.