Poverty in the Era of AI: Analysis of Material Deprivation in Europe

Abstract

Deprivation is a pervasive, ubiquitous, complex and multidimensional issue that perpetuates cycles of poverty and disparity and jeopardises prosperity and development potential for all. The present paper motivated from the increasing wealth disparities worldwide, explores the severe material deprivation in European countries aiming to identify the spatial pattern and its trends influenced by various crises, the degree to which macroeconomic dynamics and inequalities affect deprivation, and the way the determinants of deprivation are differentiated between the welfare systems. Material deprivation is found to be affected to a great degree by cyclical fluctuations presenting a different behaviour across welfare systems. Income and spatial inequalities exert a significant influence on deprivation increase verifying the imperative need for income redistribution and the mitigation of inter-territorial developmental gaps. Overall, deprivation appears resilient and hard to eliminate in both the short and long term. Its association with a broad range of inequalities and adverse conditions highlights the existence of synergies and complex dynamics that reinforce it, calling for more holistic approaches to analysis and policy formulation.