ABSTRACT

Social exclusion is a subject that attracts great interest in the social, economic and political sciences. The various dimensions of social exclusion often reinforce one another and consequently lead to even deeper marginalisation of individuals. Social exclusion has a negative impact on the quality of human capital, limits activity, entrepreneurship and innovation and generates higher cost for the state. In other words, capabilities refer to effective potential for realising goals and fulfiling expectations, whereas functioning, which represents the ‘beings and doings’ of a person, refer to realised goals and fulfilled expectations. The multi-dimensional evaluation of social exclusion under the capability approach requires consideration of several different dimensions corresponding to the relevant parts of life. The choice of domains and basic indicators depends on both the natural complexity underlying the concept of social exclusion and the potential for its application in empirical assessments.