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Using an innovative technique to measure poverty, a Georgia Institute of Technology economics professor has found that more older Americans live in deprivation than official statistics suggest.
Shatakshee Dhongde, associate professor at Georgia Institute of Technology, found that 12.27 percent of senior citizens were deprived in two or more crucial areas, including multiple disabilities, low income, a lack of education, and severe housing burden.
Dhongde said the research illustrates a shortcoming in the official measure of poverty in the United States, which focuses solely on income. The federal government reported that 9.5 percent of older Americans were living in poverty in 2013. That is below the 12.3 percent rate found in Dhondge’s multidimensional poverty index.
Research Reveals Deprivation beyond Official Poverty Count
According to Dhongde’s research, nearly four in ten older U.S. residents reported being deprived in at least one of the four categories: multiple disabilities, low income, a lack of education, and severe housing burden.
Moreover, many of those living with multiple deprivations were not income poor. For instance, 3.6 percent of seniors experienced both multiple disabilities and severe housing burden, but would not appear in official poverty statistics because their income was above poverty line threshold.
Race plays a role, as well. Dhongde found that white senior citizens were less likely to be deprived, while Asian, African-American, and Hispanic seniors were more likely to be deprived. In fact, Dhongde found that 30 percent of Hispanic seniors were deprived in two or more dimensions.
Study Relies on Census Data
The study draws on the 2013 edition of the U.S. Census Bureau’s American Community Survey, which includes detailed data on economic, housing, educational, and healthcare circumstances of people living in the United States.
Dhongde, a faculty member in the School of Economics within the Ivan Allen College of Liberal Arts, is in the vanguard of economic researchers examining multidimensional deprivation in the United States. Thinking of deprivation in a multidimensional manner is a way of looking beyond income while measuring poverty.
“The main idea is that you change the lens and look at overlapping deprivations,” she said. “So I’m not separately looking at what percent of the elderly population was deprived in X and what percent was deprived in Y and so on. Instead, I choose one individual and then analyze how many deprivations he or she is facing simultaneously.”
By examining multiple areas that can affect a person’s quality of life, Dhongde says the multidimensional poverty index can provide better insight into the population’s broader economic condition. It can also give policymakers tools to gauge where best to focus limited resources.
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