Health and income poverty in Ireland, 2003–2006

Abstract

Recent advances in the measurement of bi-dimensional poverty are applied to a measure of poverty which incorporates income and health poverty. The correlation between income and poverty is examined using the Receiver Operating Characteristics curve. Following from this uni-dimensional and bi-dimensional poverty indices are calculated for Ireland for the years 2003–2006. Income poverty shows a fall over the period while health poverty falls and then rises. Bi-dimensional poverty generally moves in line with the individual indices depending upon the relative weight for each dimension. The results are generally not sensitive to the degree of poverty aversion or the substitutability between the different dimensions of poverty.