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Estimating the extra cost of living for people with disabilities

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Author Info

  • J. Cullinan
  • B. Gannon
  • S. Lyons

Abstract

Addressing the extra economic costs of disability is a logical step towards alleviating elements of social exclusion for people with disabilities. This study estimates the long-run economic cost of disability in Ireland in terms of the additional spending needs that arise due to disability. It defines and estimates models of the private costs borne by families with individuals who have a disability in Ireland when compared with the wider population, both in general and by severity of disability. Our modelling framework is based on the standard of living approach to estimating the cost of disability. We extend on previous research by applying panel ordered probit models to living in Ireland survey data 1995–2001 in order to control for the effects of previous disability and income and correlated unobserved heterogeneity. The approach allows us to quantify, for the first time, the additional long‐run economic costs of living associated with disability. Our findings suggest that the extra economic cost of disability in Ireland is large and varies by severity of disability, with important implications for measures of poverty. Copyright (C) 2010 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.1619
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 20 (2011)
Issue (Month): 5 (May)
Pages: 582-599

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Handle: RePEc:wly:hlthec:v:20:y:2011:i:5:p:582-599

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

Related research

Keywords: disability ; long‐run cost of disability ; standard of living ; panel ordered probit ;

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Cited by:
  1. Prashant Loyalka & Lan Liu & Gong Chen & Xiaoying Zheng, 2014. "The Cost of Disability in China," Demography, Springer, vol. 51(1), pages 97-118, February.
  2. Tindara Addabbo & Elena Sarti, 2013. "Access to work and disability: the case of Italy," Center for the Analysis of Public Policies (CAPP) 0111, Universita di Modena e Reggio Emilia, Dipartimento di Economia Politica.
  3. Zantomio, Francesca, 2013. "Older people's participation in extra-cost disability benefits," Journal of Health Economics, Elsevier, vol. 32(1), pages 320-330.
  4. repec:ese:iserwp:2012-09 is not listed on IDEAS
  5. Mitra, Sophie & Posarac, Aleksandra & Vick, Brandon, 2011. "Disability and poverty in developing countries : a snapshot from the world health survey," Social Protection Discussion Papers 62564, The World Bank.
  6. 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, vol. 14(2), pages 171-183, April.

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