IDEAS home Printed from https://ideas.repec.org/a/spr/eujhec/v23y2022i2d10.1007_s10198-021-01366-1.html
   My bibliography  Save this article

Estimating the additional costs of living with a disability in the United Kingdom between 2013 and 2016

Author

Listed:
  • Lukas Schuelke

    (Barcelona Graduate School of Economics)

  • Luke Munford

    (University of Manchester)

  • Marcello Morciano

    (University of Manchester)

Abstract

In the United Kingdom, more than 20% of the population live with a disability. Past evidence shows that being disabled is associated with functional limitations that often cause social exclusion and poverty. Therefore, it is necessary to analyse the connection between disability and poverty. This paper examines whether households with disabled members face extra costs of living to attain the same standard of living as their peers without disabled members. The modelling framework is based on the standard of living approach which estimates the extra income required to close the gap between households with and without disabled members. We apply an ordered logit regression to data from the Family Resources Survey between 2013 and 2016 to analyse the relationship between standard of living, income, and disability, conditional on other explanatory variables. We find that households with disabled members face considerable extra costs that go beyond the transfer payment of the government. The average household with disabled members saw their weekly extra costs continually increase from £293 in 2013 to £326 in 2016 [2020 prices]. Therefore, the government needs to adjust welfare policies to address the problem of extra costs faced by households with disabled members.

Suggested Citation

  • Lukas Schuelke & Luke Munford & Marcello Morciano, 2022. "Estimating the additional costs of living with a disability in the United Kingdom between 2013 and 2016," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(2), pages 313-327, March.
    • Handle: RePEc:spr:eujhec:v:23:y:2022:i:2:d:10.1007_s10198-021-01366-1
    DOI: 10.1007/s10198-021-01366-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10198-021-01366-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10198-021-01366-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. McClements, L. D., 1979. "Muellbauer on equivalence scales," Journal of Public Economics, Elsevier, vol. 12(2), pages 233-242, October.
    2. Jones, Andrew & O'Donnell, Owen, 1995. "Equivalence scales and the costs of disability," Journal of Public Economics, Elsevier, vol. 56(2), pages 273-289, February.
    3. Angus Deaton & Christina Paxson, 1998. "Economies of Scale, Household Size, and the Demand for Food," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 897-930, October.
    4. Tindara Addabbo & Elena Sarti & Dario Sciulli, 2013. "Disability, life satisfaction and social interaction in Italy," Department of Economics (DEMB) 0016, University of Modena and Reggio Emilia, Department of Economics "Marco Biagi".
    5. Marcello Morciano & Ruth Hancock & Stephen Pudney, 2015. "Disability Costs and Equivalence Scales in the Older Population in Great Britain," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(3), pages 494-514, September.
    6. Muellbauer, John, 1979. "McClements on equivalence scales for children," Journal of Public Economics, Elsevier, vol. 12(2), pages 221-231, October.
    7. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Equivalence Scale Relativities and the Extent of Inequality and Poverty," Economic Journal, Royal Economic Society, vol. 102(414), pages 1067-1082, September.
    8. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    9. Wilkinson-Meyers, Laura & Brown, Paul & McNeill, Robert & Patston, Philip & Dylan, Sacha & Baker, Ronelle, 2010. "Estimating the additional cost of disability: Beyond budget standards," Social Science & Medicine, Elsevier, vol. 71(10), pages 1882-1889, November.
    10. Pollak, Robert A & Wales, Terence J, 1979. "Welfare Comparisons and Equivalence Scales," American Economic Review, American Economic Association, vol. 69(2), pages 216-221, May.
    11. Greene,William H. & Hensher,David A., 2010. "Modeling Ordered Choices," Cambridge Books, Cambridge University Press, number 9780521142373.
    12. J. Cullinan & B. Gannon & S. Lyons, 2011. "Estimating the extra cost of living for people with disabilities," Health Economics, John Wiley & Sons, Ltd., vol. 20(5), pages 582-599, May.
    13. José-Ignacio Antón & Francisco-Javier Braña & Rafael Muñoz de Bustillo, 2016. "An analysis of the cost of disability across Europe using the standard of living approach," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 7(3), pages 281-306, August.
    14. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
    15. Pudney, Stephen & Hancock, Ruth & Morciano, Marcello, 2013. "Nonparametric estimation of a compensating variation: the cost of disability," ISER Working Paper Series 2013-26, Institute for Social and Economic Research.
    16. Greene,William H. & Hensher,David A., 2010. "Modeling Ordered Choices," Cambridge Books, Cambridge University Press, number 9780521194204.
    17. Egemen İpek, 2020. "The Costs of Disability in Turkey," Journal of Family and Economic Issues, Springer, vol. 41(2), pages 229-237, June.
    18. Mariya Melnychuk & Francesca Solmi & Stephen Morris, 2018. "Using compensating variation to measure the costs of child disability in the UK," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(3), pages 419-433, April.
    19. repec:mod:depeco:0016 is not listed on IDEAS
    20. Asghar Zaidi & Tania Burchardt, 2005. "Comparing Incomes When Needs Differ: Equivalization For The Extra Costs Of Disability In The U.K," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(1), pages 89-114, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sean Kiely & Dorothee Buehler & Ute Rink & Kristin Kiesel, 2023. "The effects of disability on households' economic livelihoods and poverty in Vietnam," TVSEP Working Papers wp-035, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.
    2. Ludovico Carraro & Alex Robinson & Bilal Hakeem & Abner Manlapaz & Rosela Agcaoili, 2023. "Disability-Related Costs of Children with Disabilities in the Philippines," IJERPH, MDPI, vol. 20(13), pages 1-18, July.
    3. Ana Maria Nicoriciu & Mark Elliot, 2023. "Families of children with disabilities: income poverty, material deprivation, and unpaid care in the UK," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-11, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marcello Morciano & Ruth Hancock & Stephen Pudney, 2015. "Disability Costs and Equivalence Scales in the Older Population in Great Britain," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 61(3), pages 494-514, September.
    2. Pudney, Stephen & Hancock, Ruth & Morciano, Marcello, 2012. "Disability costs and equivalence scales in the older population," ISER Working Paper Series 2012-09, Institute for Social and Economic Research.
    3. Mark B. Stewart, 2009. "The Estimation Of Pensioner Equivalence Scales Using Subjective Data," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(4), pages 907-929, December.
    4. José-Ignacio Antón & Francisco-Javier Braña & Rafael Muñoz de Bustillo, 2016. "An analysis of the cost of disability across Europe using the standard of living approach," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 7(3), pages 281-306, August.
    5. Roddy, Áine, 2022. "Income and conversion handicaps: estimating the impact of child chronic illness/disability on family income and the extra cost of child chronic illness/child disability in Ireland using a standard of ," LSE Research Online Documents on Economics 111833, London School of Economics and Political Science, LSE Library.
    6. Egemen İpek, 2020. "The Costs of Disability in Turkey," Journal of Family and Economic Issues, Springer, vol. 41(2), pages 229-237, June.
    7. Áine Roddy, 2022. "Income and conversion handicaps: estimating the impact of child chronic illness/disability on family income and the extra cost of child chronic illness/child disability in Ireland using a standard of ," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(3), pages 467-483, April.
    8. Giovanis, Eleftherios, 2023. "Cultural Participation and Extra Disability and Health Costs of Syrian Migrants in Turkey," MPRA Paper 116299, University Library of Munich, Germany.
    9. Eleftherios Giovanis & Martina Menon & Federico Perali, 2023. "Disability specific equivalence scales: a case–control approach applied to the cost of acquired brain injuries," International Journal of Health Economics and Management, Springer, vol. 23(4), pages 643-672, December.
    10. James Banks & Mike Brewer, 2002. "Understanding the relative generosity of government financial support for families with children," IFS Working Papers W02/02, Institute for Fiscal Studies.
    11. Binh Vu & Rasheda Khanam & Maisha Rahman & Son Nghiem, 2020. "The costs of disability in Australia: a hybrid panel-data examination," Health Economics Review, Springer, vol. 10(1), pages 1-10, December.
    12. Morris, Zachary A. & Zaidi, Asghar, 2020. "Estimating the extra costs of disability in European countries: Implications for poverty measurement and disability-related decommodification," LSE Research Online Documents on Economics 103778, London School of Economics and Political Science, LSE Library.
    13. Oznur Ozdamar & Eleftherios Giovanis, 2016. "The Link between Health Condition Costs and Standard of Living: A Structural Equation Modelling," Working Papers 1060, Economic Research Forum, revised 11 Jan 2016.
    14. Angela Daley & Thesia I. Garner & Shelley Phipps & Eva Sierminska, 2020. "Differences across Place and Time in Household Expenditure Patterns: Implications for the Estimation of Equivalence Scales," Economic Working Papers 520, Bureau of Labor Statistics.
    15. Christos Koutsampelas & Panos Tsakloglou, 2013. "The distribution of full income in Greece," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 40(4), pages 311-330, March.
    16. Aaberge, Rolf & Bhuller, Manudeep & Langørgen, Audun & Mogstad, Magne, 2010. "The distributional impact of public services when needs differ," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 549-562, October.
    17. Bargain, Olivier & Donni, Olivier, 2009. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies," IZA Discussion Papers 4654, Institute of Labor Economics (IZA).
    18. BARGAIN Olivier & DONNI Olivier, 2010. "The Measurement of Child Costs: A Rothbarth-Type Method Consistent with Scale Economies and Parents’ Bargaining," LISER Working Paper Series 2010-30, Luxembourg Institute of Socio-Economic Research (LISER).
    19. Angela Daley & Thesia Garner & Shelley Phipps & Eva Sierminska, 2020. "Differences across countries and time in household expenditure patterns: implications for the estimation of equivalence scales," International Review of Applied Economics, Taylor & Francis Journals, vol. 34(6), pages 734-757, November.
    20. John Cullinan & Brenda Gannon & Eamon O’Shea, 2013. "The welfare implications of disability for older people in Ireland," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(2), pages 171-183, April.

    More about this item

    Keywords

    Disability; Standard of living; Equivalisation; Poverty; Welfare state; Extra costs;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:eujhec:v:23:y:2022:i:2:d:10.1007_s10198-021-01366-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.