Presentation on theme: "The 2011 Pobal HP Deprivation Index for Small Areas (SA) Statistical Features Dublin, August 2012."— Presentation transcript:
1 The 2011 Pobal HP Deprivation Index for Small Areas (SA) Statistical Features Dublin, August 2012
2 Introduction to The 2011 Pobal HP Deprivation Index This presentation highlights some of the more technical issues in the construction of the and 2011 Pobal HP Deprivation Index for Small Areas (SA) and is aimed at the more statistically-minded reader.At the level of the individual indicator variables, the presentation includes:The transformation of the 2006 indicator variablesThe transformation of the 2011 indicator variablesA comparison of the 2006 and 2011 indicator variablesAt the level of the new Pobal HP Deprivation Index, the presentation includes:The change in the Absolute Index ScoresThe change in the Relative Index Scores
3 The Underlying Dimensions of Social Disadvantage Demographic Decline (predominantly rural)population loss and the social and demographic effects of emigration (age dependency, low education of adult population)Social Class Deprivation (applying in rural and urban areas)social class composition, education, housing qualityLabour Market Deprivation (predominantly urban)unemployment, lone parents, low skills base
4 Pobal HP Deprivation Index Basic Model of thePobal HP Deprivation IndexdAge Dependency Rate1DemographicdPopulation ChangeGrowth2dPrimary Education only3dThird Level Education4dPersons per Room5Social ClassCompositiondProfessional Classes6dSemi- and Unskilled Classes7dLone Parents8Labour MarketdMale Unemployment RateSituation9dFemale Unemployment Rate10
5 The Transformation of Indicator Variables When deriving composite indicators for multi-dimensional concepts, like deprivation, it is common practice to transform the individual indicator variables to normalise their distribution prior to model estimationThe most common transformations include:truncation - to avoid the undue influence of extreme outlierszero-centering – to eliminate unwanted trend influenceslogarithmic – to normalise a skewed distributionThe transformation of scaled variables does not affect the order of observationsThe overall emphasis on deriving true measures for the composite index as a distance from the mean is thereby maintained, whilst avoiding that this is unduly influenced by a small number of extreme observations
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