Does Capability Deprivation Hurt?

Suppa, Nicolai (2011). "Does Capability Deprivation Hurt?" Paper presented at the 8th annual conference of the HDCA, 6-8 September 2011, the Hague, the Netherlands.

The present paper explores the link between poverty as capability deprivation and current life satisfaction. Using German panel data, I examine both, whether capability deprivation does hurt and whether individuals eventually adapt. To detect capability deprivation I suggest, to rely on the non-consumption of commodities pivotal for certain functioning achievements. The results indicate that poverty as capability deprivation reduces life satisfaction in a statistically and economically significant way. Moreover, the results suggest that individuals fail to adapt within the subsequent four-six years.
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