The disparate evolution of multidimensional poverty, vulnerability, and horizontal inequalities in Uruguay

There is an ongoing discussion on the extent and limits of the decrease in deprivation and inequality experienced by Latin American countries in the period before the COVID-19 pandemic. To contribute to this debate, we carry out a multidimensional analysis of the evolution of poverty, vulnerability to poverty, and horizontal inequalities among the Uruguayan adult population between 2006 and 2018. Based on the results of a previous consultation process, we consider deprivation in six domains: education, health care, labour force status and social protection, housing, social cohesion, and life satisfaction/leisure-work balance. To capture these dimensions, we conducted two separate analyses, using data from official household surveys and a public opinion survey (Latinobarómetro). Our findings show that multidimensional poverty decreased at a much slower pace than monetary poverty (44.6% to 33% and 25.5% to 5.6%, respectively), and that in 2018, 28% of the adult population was at risk of experiencing multidimensional poverty in a worsened economic scenario. At the same time, our results show that despite the reduction in multidimensional poverty, multidimensional horizontal inequalities in terms of ethnic/racial origin, region and age group remained unchanged or, in the case of gender, even increased. These findings underscore the fragility that persisted even after a period of rapid economic growth and redistributive reforms.