Economic insecurity in Spain: A multidimensional analysis

In this paper, we propose the use of a multidimensional approach to the measurement of economic insecurity in Spain. Using longitudinal EU-SILC data from 2008 to 2015, we calculate six different unidimensional indicators proxying the subjective and objective determinants of economic insecurity. We combine these six indicators into a single Economic Insecurity Index that allows for measuring incidence and intensity and for which we undertake a variety of robustness checks regarding the aggregation of the different dimensions (simple mean, PCA and counting approach). Results show that the probability of being economically insecure is higher for the lowest income deciles, young, temporary employees and the unemployed, while tertiary education and a relatively high occupation significantly reduces it. The incidence of insecurity falls as income deciles grow, even if insecurity affects the whole range of the income distribution, and it is significantly present in middle income households. Moreover, the contributions to insecurity by dimensions are significantly different as income grows.