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Non-cash Income, Living Standards and Inequality: Evidence from the Luxembourg Income Study

In: Economics in a Changing World

Author

Listed:
  • Peter Saunders

    (University of New South Wales)

  • Timothy M. Smeeding

    (Syracuse University Luxembourg Income Study)

  • John Coder

    (Bureau of the Census)

  • Stephen Jenkins

    (University of Swansea)

  • Johan Fritzell

    (University of Stockholm)

  • Aldi J. M. Hagenaars

    (Erasmus University)

  • Richard Hauser

    (University of Frankfurt)

  • Michael Wolfson

    (Statistics Canada)

Abstract

The economic well-being of households is determined by their resources relative to their measurable economic needs. Economic resources include both cash and non-cash income. While after-tax cash income is the most widely employed measure of household economic well-being, it may exclude considerable amounts of resources received in a non-cash form. These include health care, education, housing, food and other subsidies from governments; production for own consumption by farmers, peasants and other individuals living mainly in rural areas and small towns; and in-kind transfers received from relatives, friends and others in the form of food, clothing and/or shelter. Moreover the distribution of these non-cash resources may vary systematically by population subgroup, thus affecting measures of relative economic well-being within and between households. They may also differ systematically by country. They almost certainly differ by regime, for example in the post-communist reforming socialist economies (RSEs) as compared with Western European and other Western nations.2

Suggested Citation

  • Peter Saunders & Timothy M. Smeeding & John Coder & Stephen Jenkins & Johan Fritzell & Aldi J. M. Hagenaars & Richard Hauser & Michael Wolfson, 1993. "Non-cash Income, Living Standards and Inequality: Evidence from the Luxembourg Income Study," International Economic Association Series, in: Dieter Bös (ed.), Economics in a Changing World, chapter 11, pages 198-217, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-22988-8_11
    DOI: 10.1007/978-1-349-22988-8_11
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    Cited by:

    1. Frick, Joachim R. & Grabka, Markus M., 2001. "Der Einfluß von Imputed Rent auf die personelle Einkommensverteilung," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 221(3), pages 285-308.
    2. Olli Kangas & Veli-Matti Ritakallio, 2004. "Relative to What? Cross-national Picture of European Poverty Measured by Regional, National and European Standards," LIS Working papers 384, LIS Cross-National Data Center in Luxembourg.
    3. Rune Ervik, 1998. "The Redistributive Aim of Social Policy: A Comparative Analysis of Taxes, Tax Expenditure Transfers and Direct Transfers in Eight Countries," LIS Working papers 184, LIS Cross-National Data Center in Luxembourg.
    4. Panos Tsakloglou & Francesco Figari & Alari Paulus & Holly Sutherland & Gerlinde Verbist & Francesca Zantomio, 2012. "Taxing home ownership: distributional effects of including net imputed rent in taxable income," EcoMod2012 4323, EcoMod.
    5. Peter Whiteford, 1997. "Measuring Poverty and Income Inequality in Australia," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 4(1), pages 39-50.

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