A Multidimensional Analysis of the Elderly in the U.S

The number of older adults in the USA is growing rapidly and by 2030 Americans aged 65 years or older will account for roughly 20% of the total population. We estimate multidimensional deprivation among the elderly in the US Deprivation is measured in four distinct dimensions of well-being: health condition, standard of living, education and economic security measured by housing costs. Three different indices are estimated to analyze the joint impact of deprivation in these dimensions on older adults’ overall welfare. The study uses the American Community Survey which is the largest nationally representative household survey in the USA. Results show that, around 38% of the elderly were deprived in at least one dimension, 12% in at least two dimensions. Deprivation prevalence was higher among Asians and Blacks and especially among the Hispanic. Older Hispanic adults were predominantly deprived in education and income. The study argues that measuring disparity in overlapping dimensions will be useful to design effective policies in the future.

• School of Economics