Economics in a picture

Poverty and social exclusion are multifaceted realities. Based on information from the Statistics on Income and Living Conditions database, conducted by Statistics Portugal, it is possible to compute a multidimensional poverty indicator, aggregating dimensions such as labor market participation, education, material deprivation, social deprivation, health and housing. This multidimensional approach identifies individuals who are not captured in the usual poverty and social exclusion indicators.

The multidimensional poverty rate declined continuously in Portugal between 2014 and 2020. In 2020, the proportion of the population in multidimensional poverty, defined as those individuals deprived of at least five of the 21 variables analyzed, stood at 15.4%. The individuals in severe multidimensional poverty, that is, those deprived of at least eight of the variables, corresponded to 5.8% of the population (14.9% in 2014). 

For more details see Alves (2022), “A multidimensional poverty indicator for Portugal”, Banco de Portugal Economic Studies, Vol. VIII, No. 4, pp 27-51.

Prepared by Nuno Alves. The analyses, opinions and findings expressed above represent the views of the author and not necessarily those of Banco de Portugal or the Eurosystem.

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