Severity of material deprivation in Spanish regions and the role of the European Structural Funds

Material deprivation has recently affected households with worrying pressure. In order to evaluate the degree of this affliction, we build categories of deprivation with increasing intensity, using the 2014–2018 EU-SILC cross-sectional data for households in Spanish regions. We explore household characteristics and regional heterogeneity associated with the relative risk ratios of falling into such categories. Moreover, the paper assesses whether two axes of the European Structural and Investment Funds (specifically, those allocated to the objective of social inclusion and sustainable and quality employment) matter at weakening such risks. Only social inclusion funds are strongly associated with a lower relative risk of material deprivation. This might be due to a regional misalignment and/or to an inefficient use of the funds.