The objective of this study was to determine and explain the factors that affect deprivation in
Jordan. To do so, this study constructs and tests
a model that determines th
e factors, which affect
deprivation. It employs an econometric analysis to examine the relationship between some main
socioeconomic variables and the status of deprivation in Jordan. It looks at how changes in income,
unemployment, education, health,
housing conditions and access to serv
ices, as well as pollution, will
affect the status of deprivation. The study uses the raw data of the national Household Income and
Expenditure Survey HIES, which was conducted by the Jordanian Department of Statistics during
2002/2003 and covered 12,792 households. The study concludes that deprivation was caused by low
income, unemployment, low educational attainment, bad type of housing, barriers to essential services,
poor health and pollution. However, the effect of these factors varies. Simulation results of the model
predicts that if income deprivation, unemploymen
t and education deprivation are reduced by 1% the
overall deprivation index will decrease by 0.7%, holding other variables without change. Realizing
such reductions, however, will require policies to
further increase wages and salaries, encourage
investment in human capital and job creation.