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Appendix 5: About the NZ Deprivation Index

The NZDep2013 Index of Deprivation reflects eight dimensions of material and social deprivation. These dimensions reflect:

  • lack of income
  • employment
  • communication
  • transport
  • support
  • qualifications
  • owned home
  • living space.

Variables included in NZ Deprivation 2013 (proportions in small areas) in order of decreasing weight in the index:

  • people aged <65 with no access to the Internet at home
  • people aged 18–64 receiving a means tested benefit
  • people living in equivalised* households with income below an income threshold
  • people aged 18–64 unemployed
  • people aged 18–64 without any qualifications
  • people not living in own home
  • people aged <65 living in a single-parent family
  • people living in equivalised* households below a bedroom occupancy threshold
  • people with no access to a car.

*Equivalisation: methods used to control for household composition.

Note: The telecommunication variable used in previous versions of NZDep – ‘no access to any phone at home’ – has been dropped in 2013, after careful investigation, and has been replaced by another telecommunication variable – ‘no access to the Internet at home’.

See Socioeconomic Deprivation Indexes: NZDep and NZiDep, Department of Public Health for more information about the NZ Deprivation Index.

Household income

The setting of the household equivalised income threshold was based on two principles:

  • The proportion of the population identified as being socio-economically deprived by the threshold should be broadly consistent with the other variables in the index (ie the threshold should be neither too inclusive nor too restrictive).
  • The threshold should be broadly consistent with other measures of income poverty.

The poverty-line work of Stephens and Waldegrave (2001) was used as a guide for setting the NZDep2001 and NZDep2006 household equivalised income thresholds as close as possible to 15 percent of people (NZDep2001 Index of Deprivation, (Salmond & Crampton, 2002b), NZDep2006 Index of Deprivation, (Salmond et al., 2007a)).

This threshold is maintained for NZDep2013.

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