Development and determinants of a multi-dimensional index of perceived deprivation in the EU regions

Abstract Poverty is a complex and persistent phenomenon, the eradication of which is crucial for all economies, regardless of their development level. Its multidimensional nature necessitates a comprehensive understanding of demographic, socioeconomic, and institutional determinants to devise effective poverty alleviation strategies and promote sustainable development. Within this context, this paper aims, first, to measure the deprivation levels of the NUTS2 regions of the EU during 2002–2020 through the lens of people’s perceptions. This approach captures individual perspectives across multiple fields of deprivation—income, living conditions, health, education, and safety—offering a more nuanced view of poverty persistence. Second, it explores the determinants of deprivation, which are shaped not only by individual characteristics but also by the socio-economic, institutional and geographic environment that define regional development capacity. By shedding light on these complex and interconnected factors, this analysis aims to deepen understanding of poverty’s persistence and prevalence, offering valuable insights for policymaking.