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To elucidate the multidimensional nature of poverty, this study analyzed child deprivation and social exclusion in Taiwan. First, a fuzzy set approach was used to construct an aggregate poverty index, to measure the levels of perceived necessity, deprivation, and social exclusion experienced by children. The study involved conducting a decomposition analysis to measure the poverty index according to certain dimensions. Second, this study involved analyzing possible determinants of perceived necessity, deprivation, and social exclusion, using seemingly unrelated regression models. We used cross-sectional data obtained from the Household Living Conditions Survey conducted in 2014. The results suggest that over two-thirds of the respondents identified all the items as necessary. Three highest levels of perceived necessity were housing, medical care, and clothing dimensions. Children faced high risks of deprivation and exclusion. The three highest levels of deprivation and exclusion were exhibited in the dimensions of environment, recreation, and education; the lowest two levels of deprivation and exclusion were exhibited in the dimensions of medical care and housing. The dimensions with higher levels of deprivation and exclusion exhibited higher relative contributions to facilitating poverty reduction. Moreover, evaluation of income and expenditure, family income, and family type were significantly related to the degree of perceived necessity and the levels of deprivation and exclusion. Those living in families with a large number of children exhibited a higher level of deprivation. Education of the caregivers was closely linked to social exclusion of children. This paper represents preliminary and small-scale research; however, several implications for methodology and policy can be derived from this study. [ABSTRACT FROM AUTHOR]

• Capability approach gives a dynamic grasp of Taiwan's poor children's well-being. • Capability deprivation affects more poor children than other forms do. • Capability deprivation poses a persistent challenge for poor children. • Different factor mixes lead to diverse well-being dynamics of poor children. • The capability approach provides new insights for children's service providers. In this paper, the well-being dynamics of Taiwanese poor children are analyzed by utilizing the 'Taiwanese Panel Data of Poor Children and Young People'. Guided by the capability approach, children could be deprived in terms of the interplay of functionings and capabilities. Our findings show that capability deprivation affect more poor children than other forms of deprivation do. Also, compared to the transitions of the other deprivation categories, there is a persistent nature in capability deprivation among poor children and young people. Moreover, changes in some resource factors (e.g., computers and pocket money) and conversion factors (e.g., gender, school transfer, child relationship with teachers or classmates) are found to have a significant relationship with their well-being dynamics. Based on the research findings, a proactive approach is proposed to expand the capabilities and freedoms of poor children. In addition, the research limitations that need addressing in future studies are considered. [ABSTRACT FROM AUTHOR]